NEO has gained a lot of publicity and momentum recently in the world of blockchain technology. At the beginning of the month, the price was just £5.5 ($7.3), just over a year after the launch of their Initial Coin Offering (ICO)!
Throughout August, the price accelerated to a high of around £40 ($51), before pulling back for a correction and has lingered around the £30 ($38) over the past week.
Today though the price took a hard knock falling down as low as £23.02 ($29.75) on the popular cryptocurrency exchange platform Bittrex.
The recent price movements come after China announced it is planning strict regulations when it comes to ICO’s. Many start ups and already existing organisations are turning to ICO’s as a currently unregulated way of raising large amounts of Capital.
In many cases it can be as easy as putting together a simple website, maybe an explanatory video to go with it, and creating a custom token on one of the supporting platforms. As long as organisations can sell the idea of their project to potential investors, the project could potentially raise millions!
The current record was set by Tezos who’s ICO ended back in July 2017 where they raised a hefty $232 Million worth of cryptocurrency to help fund their project. It’s easy to see why an ICO would be so appealing.
The Chinese government however have become the first of the global leading organisations to announce plans to introduce regulation on ICO’s, potentially even banning them while a solution is agreed!
So why would this affect NEO?
Well the NEO project is designed to offer organisations a platform to build and develop decentralised applications and smart contracts, much like the older Ethereum. Often dubbed Chinese Ethereum, they provide a way for organisations to launch their own token as a way to fund these projects.
On 10th September, Red Pulse open’s the doors of it’s ICO to begin selling their tokens (RPX). It’s is set to be the next and one of the first ICO’s to be introduced onto the NEO blockchain, however after today’s announcement, they have stated they will not be allowing Chinese citizens to invest in their ICO.
Although it has caused a lot of uncertainty for both Red Pulse and future NEO projects, the move couold play to the benefit of the pair after the launch of the ICO.
The announcement was addressed only ICO’s and potentially illegal fundraising schemes, meaning after the ICO has finished and the RPX tokens are available to trade on public exchanges, Chinese investors will be able to buy in, potentially causing a huge spike in the price!
So for now although there is uncertainty, and future regulations are likely to be introduced, the only thing on many investors minds when it comes to NEO is to take advantage of the price dip and buy more for less BTC!
Some people on the other hand are selling up over fears the Chinese may announce even stricter regulations on even the existing cryptocurrency market.
It’s a tough call to make and like anything in the blockchain world is completely unpredictable!
Good luck to everybody!
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