China has now stated that they will allow ICO’s to continue, under it’s watch. Everyone is still fearful for what this means for Asia backed cryptocurrencies like NEO.
China Turns Around
China stated earlier today that they will be allowing ICO’s contrary to the public release they issued the other morning which we wrote about in our article on China Cracking Down on Cryptocurrency.
It is no news again that Chinese government has always been in support of its homegrown companies and technologies, such as Alibaba and NEO being a Chinese cryptocurrency is no different. The crackdown comes from the wild wild west mentality that has overtaken the ICO space. There are many concerns as to the vulnerability of the entire cryptocurrency economy when too many ICO’s are launched and some may or may not be driven by legitimate firms / individuals. In the long run, we personally do not see this as a bad thing for the longevity of the cryptocurrency markets healthy growth cycle.
NEO saw an immediate effect when the ban hit, dipping into the teens in price. The relief China would not be outright banning cryptocurrency ICO’s and of course or doing the rumored banning cryptocurrency all together, quickly gave support to the NEO community and the coins value, seeing over a 40% gain in one day. As of this writing, NEO currently sits at $29.69 at a 24 hr 40.22% gain. A substantial, and if you ask me much needed, comeback the coin on the heels of the announcement Bitfinex will also be listing NEO starting today.
For Neo this is an amazing deal. Not only do I firmly believe that NEO will now be the foundation for many other coins to be spring-boarded on this platform, but I think they will be in a Baidu (China’s closest thing to a Google) or Alibaba position where they are in good standing with the local government. Surely, that will make it easier to grow as a BaaS or Blockchain as a Service for other token or coin startups. Not to mention NEO’s founder, Da Hongfei, and Zhao Chen (Johnson), are now working on an enterprise BaaS called Onchain with big partners such as Elon Musk and have been financially backed by firms like the Fosun Group. These guys are in a great space to grow now and we definitely rate them as a good buy from an investing standpoint.
We called out NEO having a sharp uptick after we published our other article on the crackdown of ICO’s by china by it seems to be, at least for the time, not a deterrent for the young cryptocurrency. Wish you would have heard this when we broke the story? Sign up our slack channel and always be kept in the loop!