The Chinese Central Bank has declared ICOs in China inadmissible and immediately stopped all fund-raising activities related to ICOs. This step represents the largest regulatory measure in the crypto area so far.
The complete ban on ICOs and the extreme restriction of the crypto trade in general represents a radical step on the part of the Chinese government in the attempt to restore state control over the crypto segment of the financial markets, which has recently slipped. Thus, the crypto and ICO hype and the technology behind it, based on the principles of decentralization and transparency, were also regarded by Chinese officials as a threat to state domination.
In addition, the ban is a strong incentive for all crypto users, investors or other interested parties in technology. Almost overnight, these people were driven into illegality by the state, and are faced with major legal and economic problems.
In view of these events, the collective price fall on the crypto exchanges is also explained. The 30 tokens with the highest market capitalization have all lost considerable value over the past few hours, many of them in the double-digit range. With the break-up of the Chinese market, which played a significant role in the general crypto-boom of the last few months, all tokens are subject to price corrections.
The ICO ban has shocked many. Not only because of the ICO prohibition, but also because of rumors regarding an extension of this prohibition on cryptic diseases in general. Whether these are now FUD or not is now set, at any time led the news to a Bloody Monday, as he is in the book:
Losses of 30% are certainly painful. However, coinmarketcap should not be used as a food for your own emotions in both bad and good times. An indication such as -10.53%, as in the case of Bitcoin, is a development much worse than it actually is.
So, what do we make of news and FUD as the statement of the Peoples Bank of China? A classic, though cruel, Bonmot says that you should buy when blood flows in the streets, even if it is your own. Coinmarketcap is currently blood-red and so many a portfolio has lost significantly in value, in the meant sense the blood flows in the cryptostrains currently streams. So what is to be advised is prudence (expressed in our scene as HODL – hold on for dear life), observing the courses and successful tests of Supports strengthen the positions in crypto.
The Bitcoin News