ICO MADNESS - China Is Correct in Banning ICO's - Here's Why

in cryptocurrency •  2 years ago 

107 - That is the current number of ICO's currently active, with more than at least 97 ICO's scheduled to begin with the next month!

Data provided by CoinMarket

https://www.coinschedule.com/index.php?live_view=2

Image Reference: Pixaby

China does not need to explain why the country has imposed a ban of all ICO's 

Many of us involved in cryptocurrencies in any fashion - wether you are an investor, trader, promoter, or even a speculator have seen and experienced the insane ICO craze which has thus far totaled over 1.2 Billion dollars in funding primarily thru BTC and ETH.  

Below is a chart by CoinBase showing the current capital generated during with current numbers as 2017 as of August 20th.

Image Reference: https://news.crunchbase.com/news/morning-report-ico-craze-may-slowing/

With 1.2 Billion already raised and by the time this post is finished it may have reached over 1.4 Billion - who knows?!?

It truly is a shame that the ICO Boom is only truly able to be controlled by.. the investors, us!  And as a community - many of us have already seens enormous returns from previous ICO's and many of the new ICO's seem very enticing and promising.  

How does the crypto-community regulate this issue within a denctralized arena? 

Aside from Government or National Bans on ICO's being conducted for ICO's in which the "project", "company" resides as China has done - there simply is no other way.  Even with a regulation imposed by a Government - there will always be a way around any type of bans.   Example: How does China stop an ICO which was scheduled to be funded for an operation residing within borders prevent that same "team" from moving their location to another location without a ban? 

Many ICO's have been successful and have been legitimate companies with an actual business plan, marketing plan, and more than a well written whitepaoer - however the fact of the matter is that anyone with basic graphic design, web design, and blockchain knowledge can initiate an ICO.  For all we know - a 16 year old kid could be the 1 person team that is accepting your ETH or BTC into their wallet as you read this.  

Fortunately ICO investors seem to be doing more research into the team, advisory panel, whitepaper and business model before investing, however each day as the cryptocurrency market value increases - and more adoption occurs, nothing will change.

Yesteray CNBC was quoted saying 

"China ICO ban will help prevent crypto scams but could create regulatory competition, experts say"

Reference: https://www.cnbc.com/amp/2017/09/06/china-ico-ban-will-help-to-stop-fraud-and-scams-experts-say.html

So What Can The STEEMIT Community do to help prevent an eminent cryptocurrency crash? 

1. Boycott all ICO's until these startups start registering as a company within their local jurisdictions.

2. Spread the word about the current ICO problem that if nothing changes - all Crypto holders may be in for a major crash course in a disastrous market crash and reduction of personal asssets

3. Boycott exchanges that are allowing and promoting ICO's to raise more than $10-20 million dollars in capital raised.  Example $200M ICO's (TEZOS) and $35M ICO's selling out in 24 seconds (BAT)

Final Thoughts:

I can only speak for myself - Personally I am going to re-evaluate my own crypto-portfolio and tighten up my holdings to mostly BTC, ETH, LTC and Precious Metals where I know these investments have already shown proven worth and value.

As Always - Thank You for taking the time to read this and as an incentive for reading this entire article prior to just upvoting it or resteemi it for a curation reward. 

Please reply  with a 1 sentence comment  with your opinion on the ICO issue and you will receive (0.25 SBD) during the course of the 7 day earring period or immediately after the 7 days expire.

Not a bad deal in my opinion and I am offering it to promote more STEEMIT post conversation in general - "Nice Post" just doesn't cut it for the 0.25 SBD REWARD

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  ·  2 years ago (edited)

I had a similar thought as I read about the Red Pulse ICO that China decided to disallow participation to residents of China, United States, Singapore, and a few others. While this decision may have caused NEO's prices to drop, I believe this is good for the long run. History always repeats itself ... does the current state of cryptocurrency market with an ICO coming out every other day remind you of any other time in history (hint: it happened in the late 90's). It is just a matter of time before all these ICO's collapse the market (at which time I will buy BTC, ETH, and Steem). I'd rather not have it come to that, but it will if we as a community don't raise our voice and do something about it.

Thanks for the great response - I missed this as I was MIA for over 3-4 weeks - Just trying to patch up the great comments I've missed with some overdue thank you's!!

The Chinese are good at copying what is successful and the Chinese government noticed this nipping it in the bud before it all got out of hand. The government isn't there to stifle innovation but to protect the future of the market from scammy projects. It is there als to protect the Chinese people because an uprising as a result of these ICO is a major headache for the government. See my post also, if you are interested. https://steemit.com/ico/@marcusxman/china-wants-to-ban-icos

Thanks for the great response - I missed this as I was MIA for over 3-4 weeks - Just trying to patch up the great comments I've missed with some overdue thank you's!!

I just did my first ico. It wasn't so bad. But I thought of it long and hard before I did.

In just learning about all this I am thankful for all the great information like this that their is on this platform. I am really trying to learn as much as I can about crypto. I find it to be the future. So thank you for suck great information followed and upvoted

Thanks for leaving a comment and glad that post was useful to you :) - Comment Reward Noted

  ·  2 years ago (edited)

Thank you for putting up such a good piece of content.

Thanks man

ICO bans were inevitable. They're out of control. Smart move consolidating your assets to fewer cryptos in light of the circumstances. I have done the same to an extent.

Hopefully people will be a little more diligent in researching coins before face-diving on ICO's out of FOMO now. Either way, cryptocurrencies aren't going anywhere. The technology is too great.

Awesome comment - thanks for sharing your opinion and I truly hope that regulations on them are eminent

  ·  2 years ago Reveal Comment

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In the long run, the ICO ban in China is good news - it was getting stupid. I came across ICO projects to me that seemed to exist for no other reason than the ICO hype train. I think the SEC's and China's moves bring the confidence of regulatory pressure to the crypto sector so more cautious investor money will flow in. You raise an interesting angle on regulatory competition. That can be a plus or a minus: are you more likely to put your money into an ICO that's registered and gone through all the checks of a strong govt?

Thanks for contributing to the conversation and post - I am all for the decentralized movement but when you see some ICO's with Team Members listed as (1-3) people - it kinda makes you wonder - Are they deserving of being funded even $500k ?

I think a deeper list of creditiaks along with a solid BUSINESS PLAN - and a roadmap longer than 1 -2 years plus being screened by some type of Goverment clearance as any other company must go thru just to become operational and ensure they are abiding by all the laws in which they operate is very very crucial..

Comment reward declined.

Ok - No problem - I was trying something different to try and get more discussion on my posts that are of importance to many in my opinion - Thank You again - :)

I like your idea to encourage engagement. Plesse kerp trying it and see how it goes.

Will do - If the newer users only new that not only does it create better content for our community - everyone on the platform ultimately will be rewarded - many who comment with an actual opinion _ have a better chance of being upvoted by a whale who passes by, being upvoted by the author who may have large SP, grows the users following, and overall just adds more value to the entire platform in general - there are many more benefits and I honestly just don't understand why people will upvote a post and not comment - unless they are just hoping for a small curatiom award by randomly upvoting posts within the right time window.
Once I learned how the Steemit ecosystem worked I always have commented with every single upvote or resteem on every post

I often upvote if I like something. But only comment if I have something more than "nice post" to say. Particularly because I'm usually only voting at about 10-20% power so I cssn to upvote more minnows more often. But, I agree with you: the hidden secret to grow on steem is comments.

Thanks for this perspective, it was definitely an eye opener. A potential big crash could put cryptos 2 steps back when we should only be going forward.

Exactly @shango - it likely will put all of crytoland 5-10x backwards in terms of valuations, market cap and also disrupt the adoption of the masses that has finally just begun

about ico trevonjb sand a video on it

Cool thanks - I follow him and will check it out

:)

This post has received a 1.12 % upvote from @booster thanks to: @krytonika.