If you took a look on coinmarketcap last week, you noticed for sure that all the major coins had massive value drops. The main reason for that was an announcement China has made regarding the ban of Chinese ICOs (for now). In other words, until further notice and regulations, Chinese companies will not be allowed to create ICOs in order to fund their projects. After this announcement, investors started transforming their assets in USDT or even cashed out (there has been a major drop in the market cap value, especially on Tuesday and Sunday). All I see right now is the opportunity to buy more with less, so this is great. And actually China’s decision is a very good one. Here’s why:
1. Most of the Chinese ICOs were scams. The Chinese government actually stated they are backing crypto and fintech technologies, however they need to establish a regulated ICO procedure, so future scams will be avoided. This is actually very good, as only strong and legit ICOs will be created.
2. There were some rumors that Chinese citizens will not be able to participate in ICOs, which is (for the moment) not true. So, Chinese companies cannot create ICOs, however Chinese citizens can invest in international ICOs. And even when they will not be able to directly invest in an ICO, they will be able to buy new tokens when they are listed on exchanges, which will mean ever more hype!
3. Due to all of the above, the market crashed last week, which makes it now a great opportunity to join the game and invest in some tokens, as they will (as always) rise.
So, happy investing!