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China's Government does not like ICOs

In the last days many rumors has come from China, tensions around the legality of the money raised through Initial Coin Offerings (ICO) are a big concern, heavy regulations were foreseeable and now an official statement from the Central Bank announced an inconclusive ban.

According to official documents, the majority of the money on these fundraising events comes from money laundry intended activities, up to 90 percent of ICO projects are suspected of intentional fraud. This is specially concerning for the authorities due to its major role on this fever, China counts for about 40% of the total revenue from ICOs this year.

Today, the People's Bank of China released an official statement in association with other national banks (all state controlled) declaring the Initial Coin Offerings, practically a "stop doing this" to the Chinese companies and people. With all this shady capital going nuts, the government prefers pull the breaks at this point than wait until there is a mess and they will have to bail an economic black hole, or at least that's how they seem to see it.

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NEO, dead or alive?

NEO's price is falling rock hard on the exchanges since the rumors became more real. There is an uncertainty around the role of the China market from now on, and this obviously is linked to the prospects of NEO, a company that made a big part of their hype around the fact of being from China, "The Ethereum of China" how it is known by many.

With the spectacular flow of money coming from Asia to the crypto market, projects like NEO gets even a bigger relevance because are seen to conquer this huge market that China embodies. ICOs are becoming the new hot thing on the speculative economy, Asia played the rich gambling hand that made it relevant, and with NEO being a platform for other crypto projects in China, was easy to form the idea to link NEO as the Chinese Wall Street blockchain.

NEO is much more than that

Remember that NEO is a protocol, for smart contracts and a platform for smart economy. This means the applications of NEO comes to be as big as you can imagine the future of the crypto economy. The analogy with Ethereum was not mistaken, it is like Ethereum, and still NEO can monopolize the e-market of China, which is home-based of the biggest online retailer in the world, Ali Baba.

Down Market

The market is panicking at the moment. Almost everything is in red colors today. The Asian markets has pumped the Bitcoin prices during last months, and China provided the cash for all the hype around the ICO miracle. This regulations comes as a big stop sign, but more than a fatality it seems like a warning sign, and break to think about where the money is going and the future that its being build through this financial vehicles.

It might be a crazy day, but the trust that the public has put on the evolution of cryptocurrencies is unstoppable. On a sick plot I would say this is a move to make prices go down and put the big money on assets that many people missed before the magic rise.

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Just to be clear, I sold about 30% of my NEO holding this morning, and now with the plumbing I'm just holding, and thinking if its worth to rebuy now at a very low price. I remember when last year STEEM went down to 0.40 cents of a dollar. Many people fell lost, even I thought the dream was gone, but in the long term we saw how is just the path of the evolution of this crypto world. Now Steem is above $1 with spikes that keep showing how the growth is always to the sky.

What do you guys think? Anyone still holding NEO?

Plaese share your thought on the comments.

Thanks for reading.

Cheers!

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