ICO DAILY (5 SEP): IS CHINA’S ICO BAN GOOD FOR CRYPTO ECOSYSTEM?
China puts a ban on ICOs: Is it good for the Cryptocurrency Ecosystem?
There’s been a lot of buzz around the new regulations and bans regarding China and ICOs. All ICOs that have already gathered some amount of money are ordered to refund everything to the contributors. As a consequence of this ban and people fearing for the worst, the crypto market is in the red. Bitcoin lost 10%, Ethereum price lowered by 15%, and NEO — the savior and The Ethereum of China flopped by 26%.
This sound and looks frightening, indeed, but maybe it’s a good sign? Maybe it’s for the best of the crypto market as this has happened in the past.
Here’s Why China’s ban on ICOs is good:
1. The rise of ICOs — Hundreds of ICOs started popping a few months ago. Most of them didn’t even have sophisticated websites or products and yet expected to raise a lot of money. The inflation of ICOs must be restricted.
2. ICO is not the same as Cryptocurrency — ICO is simply a crowdfunding project asking for money for something that might be delivered. Cryptocurrency, on the other hand, is a rather complex project requiring a lot of resources.
3. The ban is from China — China probably has more than 50% of bitcoin mining power. After the ban on ICOs, a question of “Decentralization” arises.
4. This may be a change for the better — China’s ban on ICOs might shift the way ICOs are planned, structured, and executed. Maybe this can lead to better products in the future.
You can find the full article in the blog post below.