China has popped the crypto euphoria by announcing a ban on ICOs and their ban announcement even says that they will punish those who have engaged in this illegal activity - ie past tense. The government further advises ICO platforms to return investors money now.
While it's not surprising that a government has intervened in the ICO market, I suppose it's a bit of a shock to see China make such an aggressive statement first.
Here is a glimpse of how the markets responded to the ban on ICOs in China:
Unless you were hoping for such a steep pullback in order to accumulate at a lower entry price, there is little solace in the chart for nervous investors (it gets even worse further down the coinmarketcap list).
I'm waiting to see what happens beyond the next day or two as China has made announcements in the past which sent bitcoin reeling and then seemingly reversed course or never mentioned it again. A few years ago, for example, Chinese authorities clamped down on off ramps from exchanges to fiat. That sent markets into a tailspin and then they recovered and it was never really mentioned again.
I've seen bitcoin crash so many times - by up to 70 or 80% - so I'm a bit used to the volatility now. I'm also a silver investor so, again, I'm used to swift, violent drops, if that's any consolation.
Good luck!
[Signed, Stacy]
UPDATE: ICOINFO, one of the largest ICO platforms in China has announced on its website that they are returning all funds raised to investors. No links to old projects work.
What is interesting is that the selloff started a few days before the china ICO news went out. The elite tipping their hand and selling out before the news hit the presses so they could buy again in the bloodbath before they eventually come out with an "all clear, ok to ICO again?"
not looking good
Don't you think that they will change their mind pretty quickly? I mean it seemed like trading BTC was not approved of in China and then it was on again-off again for a while before it was legit. If I was cynical I'd say a bunch of big Chinese investors dumped all their coins before the announcement and then they will change their mind in a few days or weeks...
exactly.... gyrations either by design or just normal market action = opportunity. As I noted below, I'm adding, they'll be swinging back up again.
The Chinese...reminds me of how the greeted Bitcoin back in 2014 - a strange deja vu! I think that they will eventually adapt
It might be a technique just to strike fear and enter the market at a discounted price
Great opportunity to purchase Bitcoin and other cryptos at great price. And to speculate on some tokens at 50% their price from a couple of days ago or below their ICO price lol. Saludos Max y Stacey
Investing in silver has trained me well for the crypto space! :D
Yes many of us are HODLing on Silver since we bought in to the end of the world talk in 2011. Now just imagine if we bought Bitcoin at that time. I doubt we would care whether the Chinese just banned ICO's.
Should Correct soon, just China loosing their sh#t on the market haha
Notice BITCONNECT dropped the least of all top 20 coins, not including tether obviously which is tied to the dollar. Yeah, my portfolio took a major hit but Im holding. Money is still coming into this market.
Bot trading platforms are big winners with this volatility. Im earning crypto in up or down markets. Its only when the water goes stagnant and the market sideways that the bots dont do well.
I'm in Bitconnect. Are you on the platform or just trading the coin on an exchange?
Im using the platform.
Sweet! BCC Life!
If BitCoin drops below $4000 a test of $2900 level may be in order. This is akin to gambling. I think traders are at larger risk than investors. That has proven itself time and again. I have BCC tokens and just loaned them out. Meanwhile price is falling and I think it isn't over. either way I locked in some profit. Go with the sure thing. Speculators get rich or end up going home, broke. :(
Forgot to say, been loving the Keiser report since it wasn't fashionable to turn on RT in the States lol!
buying opp for some :)
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STOPIn a way, one could argue that irresponsible ICOs with shady backgrounds were potentially hurting the crypto market with stolen money. A little correction was due anyway.
In my eyes the ban on ICOs and their corresponding shitcoins (for the most part) is very bullish for BTC/other legitimate coins. There will be less dilution, less garbage in the crypto eco-system and so capital flight should flow into established cryptos such as Bitcoin. In a way I think the Chinese government did some dirty work for us in this case.
thanks for sharing.
Ah yes, I am used to the volatility too. I bet this ban will later make the price go up. Crypto users can be defiant like that.
This is arguably irrational market response - supply of new flavours of coin, some of which may have been just 'me too' opportunistic issues have been stopped. Coin already in existence has less competition for investment/speculation........ so prices dump?!?!....... I'm adding at better prices..... crazy crypto world.
ps. and sound money (Gold /Silver) have been volatile so as you say Stacy, a good training ground for crypto-land
This offers great chance to buy
It's been a rough weekend for coins that is for sure. One thing I have learned, you can't keep Bitcoin down for long.
I thought it was just China trying to stop capital flight, but I also heard Bix Weir say that China had an insane amount of useless ICOs, so they were cleaning house.
They do own the largest Bitcoin farm and are developing their own crypto, so... I don't think they're trying to make cryptos illegal.
At any rate, they can't stop ICOs elsewhere in the world, and they can't stop the Chinese from finding ways around the blocks -- like having a friend in another country get them the tokens. It's a classic example of a government imposing economic controls, and the free market finding ways around it.
China used to be cool.