NEO is up 42.8% to US$29.76 in the past 24 hours, as the crypto rallies from earlier lows. In fact, take a look at this 7 day chart:
That’s one hell of a dip, and subsequent recovery.
China’s ICO Ban
The sharp crash on Monday (UTC time) was, of course, thanks to China’s Initial Coin Offering (ICO) ban. NEO, hailed as China’s answer to Ethereum was one of the hardest tokens hit by the news. It was positioning itself as the leading ICO platform in China, which has now been left in doubt.
But, the coin is nothing if not resilient. Today’s massive recovery is thanks to some much needed good news — a fresh listing on an exchange. Yes, today US crypto exchange Bitfinex, officially added NEO. Offered in trading pairs of USD, Bitcoin and Ether, it means western investors can now easily back the Chinese group.
All parties involved will now be waiting patiently for the Peoples Bank of China’s (PBoC) next move. Many are anticipating that the ICO ban won’t last forever, and a regulated market could emerge. Though the country does have a history of backflipping when it comes to crypto.
In 2013, after initially seeming to be in favour of bitcoin, the PBoC swiftly changed their tune and banned its use. It hurt bitcoin for quite a while, but never snuffed it out entirely. Today, China is still one of the largest traders of crypto by volume.
Even earlier this year, the PBoC took aim at Chinese crypto exchanges. Once more the markets took a hit, as it looked like trading might be banned. But, lo and behold, they reversed their decision and exchanges continued to thrive.
The ICO ban looks like it could be another repeat. Even insiders are seemingly optimistic. Coin Telegraph reports that a source close to regulators said that ‘this current ban is a “stop” but not a “forbidden”’.
Whether that statement is true or not will only become clear with time, but we’re optimistic. ICOs may be facing teething problems currently — and not just in China — but they aren’t going away anytime soon.
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Filecoin’s ICO Finalised
Which is perhaps best encapsulated by the recent success of Filecoin. The company just finalised its own ICO yesterday, breaking the all-time record for ICO funding at the same time.
In just under a month, the company raised over US$257 million. Which eclipsed previous record holder Tezos, who raked in US$232 million during their ICO. It was always likely to happen anyway, today’s final figure is just the rubber stamp to solidify it.
Filecoin was a hot commodity almost instantly, raising close to US$200 million in the first hour of sale. The money being poured into cryptos isn’t going anywhere. In fact, September is on track to be one of the busiest months for ICOs ever.
Crypto isn’t going away anytime soon, which is why we’re so bullish on the market. But, we can’t sugar-coat it, it’s still one of, if not the riskiest investment sector going around. We are here to help though, and we’ve got a handy guide that can get you started.
Junior Analyst, Money Morning