Most people woke up to a crashing market on Monday morning. This created apprehension in the crypto community with many being oblivious of what had triggered the bloodbath.
A meeting was held last night in China by the committee that oversees the risks of the internet finance sector, and the outcome was that they intend banning ICO’s. It is their view that the phenomenon of Initial Coin Offerings was too risky for their citizens and they believe it has to be nipped in the bud. This announcement has affected the market with most cryptocurrencies trending southward. It is further compounded by the actions of people who are in FUD (Fear Uncertainty and Doubt) mode and are engaged in panic sale as a result.
The bright side to this however is that smart investors are beginning to snap up the relatively cheaper coins on the market. Most people are aware of the saying “buy low and sell high” but only few apply this. What seems like negative news to many is the smart investor’s buy-in opportunity.
Additionally, the market had been expected to experience some form of retracement considering recent bullish performance and this news is only serving as a catalyst for what was bound to happen anyway – the announcement only adds a dramatic angle to it.
Another bright side to this is that since the market relies a lot (but not totally) on China, it will be forced to further diversify and explore more virgin territories around the globe thereby spreading how much hold a particular region can have on it. This might in fact help to curb the characteristic spate of market volatility soon.
It is also important to note that the last couple of months have been really good to the market with total market cap testing $160 Billion dollars from a figure of $10 Billion. And the good news is that there are a lot of positive developments for blockchain in the offing as such current low prices present a good entry point for many to own a lot more coins for fewer fiat.