Chinese speculation casts doubt sending alt-coins, such as NEO, into a downward frenzy.
Thankfully, speculation is just that, and considering these hot topics spread like wildfire on social media like Twitter, some of it is just pure FUD. Though, it is true the Chineese government is talking regulations on Initial Coin Offering (ICO), some of the information circulating brewed a much different poison. That poision, that some like to call FUD, or Fear, Uncertainty and Doubt, caused quite a bit of panic as worried investors dropped their postions. Granted, Bitcoin was also taking the fast train to a new all time high conviently as the ICO 'banning' news began to spread, the FUD claimed many long term positions.
Reports steming from Tencent Finance discuss a joint meeting between China Banking Regulatory Commission, Securities Regulatory Commission and several other major China Internet Network Finance deparments. The source stated:
"regulators brewing the feasibility of the program include: control ICO scale, strengthen information disclosure, supervision and raising the digital currency, issued investment risk warning. In addition, if a large risk is found, the regulation will even suspend all ICO behavior and rectify it"
While this may of initially sound frigtening it appears it may actually attempt to limit scams, be more transparent and even protect investors from fradulent ICO. This is great news in consideration of recent large scale ICO scams that have duped investors out of millions. Most of the scams have been related to 'SmartContracts' and Ethereum transfers to illigitimate reciveing addreses. There are also many tied to email and website phishing scams. Reducing the risk investing in ICOs is pertinent for the growth of the future of cryptocurrencies alike.
Of course, on the other hand, Government regulation is the exact opposite of the initial cryptocurrency vision. Any form of government manipulation or intrusion is the very reason many investors have flocked to the crypto-verse. Often these regulations destroy ideas to further their own. This is something the world of crypto took notice when Chineese firm NEO, dubbed the “Ethereum of China”, announced they would not get in the way of the Chineese speculation around ICO regulation and it's own ICO, Red Pulse. This means NEO will not be opening their doors to already heavily regulated Chinese investors. Coindesk reports further on China regarding ICOs.
While we don't have a solid answer of what to expect of the future it is currently clear that NEO, Red Pulse and many other ICOs remain on the horzion in light of the news. Being, the internet, a large game of 'telephone', the hearsey is just that until regulations are officially discussed. Our hope is that we can effectively come to a point where innovation and success can co-exist with government assist assuming it is in the best nature of the people. Innocent investors need some layer of protection until someone steps in or if the ICO and crypto ecosystem cannot provide that the crypto-verse remains the digital wild, wild west.