NEO Worst Hit By Chinese Cryptocurrency Ban
Neo (NEO) has won itself a special place at the heart of the Chinese people earning it the name “Chinese Ethereum”. At a time when almost every cryptocurrency is getting jittery about the actions of the Chinese government towards the booming cryptocurrency market, it is wonder how the NEO cryptocurrency will continue stealing the show in China.
In addition to the ban on cryptocurrency trading in China, there have also been fears of companies behind cryptocurrencies having to refund the amount they collected using the Initial coin offering (ICO). Taking into consideration that most cryptocurrencies gather their initial funds to support the project through ICO, refunding can be a devastating move and it could cripple many crypto coins.
Is Neo (NEO) being affected by the cryptocurrency ban in China?
The ban of cryptocurrency trading in China has started biting even amid expectations that the ban may be lifted soon. But at the moment, cryptocurrencies are bleeding.
The most worrying part is not on the trading ban, but the talk about refunding the ICO obtained funds. NEO is an ICO cryptocurrency and there were hopes among the Chinese investors that NEO cryptocurrency would offer a better ICO platform.
NEO is seen to follow the regulations set aside for cryptocurrencies and investors are confident that it will be exempt from the ban by the Chinese government. But it is interesting that even with the contract law and legal use of digital signatures being set on 2007, there are no clear rules on how to use the ICO and it will be tricky to regulate them although the Chinese government seems very determined.
We don’t know how long this will continue. We only hope that the rumors in the air about the Chinese government lifting the ban on cryptocurrency trading will become effective soon. Looking at the number of cryptocurrency companies with their roots in China, they may convince the government to moderate on the cryptocurrencies as they give the government a good sum of revenues.
NEO cryptocurrency had been the only crypto coin that was doing great even after the December upsurge that saw almost every other coin declining in the whole of January, 2018. However, as of 1st January, the Neo (NEO) coin has started feeling the heat of the ban on cryptocurrencies in China and its prices has started to decline registering a 32% decline in just 4 days.