China Might Suspend ICOs and NEO is dropping like a rock!
If you're holding NEO right now, you might want to reconsider. NEO is currently down 7% in the past 24 hours on news that China is suspending ICO's.
It's not 100% official yet, but it's a rumor with enough legs to seriously damage NEO's hopes to be the "Ethereum of China" and cancel the majority of future planned ICOs on the platform.
"The People’s Bank of China (PBoC) is reportedly considering a blanket ban on ICOs if lawmakers find “large risks” to > consumers.
According to reports from a meeting earlier this month by local news outlet Tencent, the PBoC is actively assessing possible limits on ICO activities in China.
A source told the publication that the meeting included participation from the country’s Securities and Futures Commission, and Banking Regulatory Commission among others.
Among the tools under consideration are controlling the size of ICOs, beefing up requirements for disclosure of information and more overt warnings about the risks associated with investing.
“In addition, if a large risk is found (for investors), the regulator will suspend all activities associated with ICOs and address them,” Tencent stated." - Coin Telegraph
I suppose we'll see how things progress, but this could either be the start of a big NEO crash, or a really nice buying opportunity if things don't end up being too serious.
As of now though, the price is getting worked pretty good. Take a look below at the charts from Bittrex, red candles galore.
Wow thanks for the heads up! I hold (held) a little bit of NEO until just now but I moved those funds to another more stable currency.
I wonder how low it will go?
Idiots. Banning ICO's doesn't mean there won't be tokens on NEO. China just wants to regulate that out-of-control ICO business, and I totally agree they should!! FUDders and whales got good coins cheap today.
I specifically said in the post "I suppose we'll see how things progress, but this could either be the start of a big NEO crash, or a really nice buying opportunity if things don't end up being too serious."
No one knows if this is the start of a long fall for NEO, or an easy way to profit from an 11% pullback. Time will tell, but you can't argue it dropped 28% in an hour, then recovered but is still down around 10%
For sure, the fud in this market is REAL, and this was in no way good news... however, they shouldn't have this kind of impact if most people actually understood what was going on.
Looks like a dead cat bounce to me (yesterday). Still kinda early to say but that sure looks like a downward channel forming on the hourly chart. Tested $30 this morning and looks like it'll do it again soon.