NEO Price Goes off the Deep End as Chinese Regulators Ban ICOs

Holders of the NEO altcoin will not be too happy with the way things are evolving right now. After a massive price surge to nearly US$50 per coin not too long ago, the markets have taken a turn for the worse. In fact, one NEO is only worth US$20.16 right now and the value is still dropping as we speak. With a 33.58% loss in the past 24 hours, things aren’t looking all that great for this currency. The ambition to become the Ethereum of China has seemingly backfired.

NEO Price Plunges like a Rock

It is not entirely surprising to see the NEO price going down as we speak. After all, the altcoin saw a massive value appreciation not too long ago, which was bound to eventually result in a correction. However, NEO had successfully maintained its US$34 value for quite some time. Many people were hoping the price would go up again, but things have not evolved in that direction by any means. Instead, the NEO price continues to go down as time progresses, which is rather problematic for this project and its holders.

As of right now, the “Ethereum of China” is dealing with a major price collapse. NEO still maintains a market cap of just over US$1 billion, although that number may go well below this threshold a lot sooner than people think. With the value per NEO dropping to US$20 and potentially going much lower in the next few hours, things aren’t looking great. This dip will create new opportunities for people to stock up on some cheap NEO, assuming people are willing to take this risk in the first place. Right now, that seems rather doubtful, though.

Although it’s unclear why NEO is dropping, a recent decision by the Chinese government may have something to do with it. As we previously reported, legislators were considering banning all cryptocurrency ICOs outright. Late last week, this was merely a suggestion rather than confirmed fact. It now appears it has indeed become reality and cryptocurrency ICOs are entirely illegal in the country. Companies can no longer raise money through ICOs and a lot of major platforms will be seeing additional scrutiny moving forward.

This is not good news for NEO either, which gained its initial traction mainly through Chinese investment. With this new warning, a lot of investors are trying to liquidate their assets to evade government scrutiny. Whether or not those efforts will be in vain remains to be seen, though. Rest assured the markets will remain quite volatile for quite some time to come. NEO got caught up in this negative momentum and may see some wild fluctuations for the foreseeable future.

It is evident some Chinese exchanges are pushing the NEO price down even further as we speak. More specifically, Yunbi, Jubi, Yuanbao, and 51szzc all value NEO a bit lower than US$20. It is possible this is only a sign of things to come. If the NEO price keeps declining at this rate, it is only a matter of time until it drops below US$20. No one knows for sure what the real value of this altcoin should be at this time. Moreover, rumors regarding the first ICOs to be launched on the NEO platform have now been canceled as well.

It is certainly possible we will see some increased scrutiny by Chinese officials regarding Ethereum itself. Indeed, the platform is the main reason why virtually all cryptocurrency ICOs exist. Although it is not a centralized entity by any means, the Chinese investment community may effectively pull their support for Ethereum until the situation becomes a lot more clear. It is uncertain this will actually happen, though, as there are still a lot of unanswered questions to consider right now.

  • This is what happens when you build a platform or model (ICOs) based upon the centralized regulated FIAT model (IPOs). It opens it wide open for regulatory intervention. This could be seen coming a mile away. The USA SEC dropped a phonecall to a small ICO company who collected about $45000. YES … $45k not millions. They didn’t have the money nor resources to challenge the ICO so they are refunding people and have cancelled the ICO.
    First USA. Now China. And go check it out … South Korea is now on a rampage. It ain’t stopping folks.Be creative! Be ingenius! Think outside the traditional box … traditional way of doing things. Be Creative and straddle both sides of the fence SOMEHOW LOL! We’ve only just Begun!

    • Kev Tootill

      NEO has real potential and it is actively complying with the chinese government to make sure they are not a scam, but there will be many more hurdles like this to overcome across the whole blockchain landscape, exciting times.

      • Johnny

        Even if it does comply, the Chinese government could decide crypto is an existential threat to their bankers/sovereignty as a nation and ban everything outright. This was easily predictable in the land of red tape…..

    • Derek Waldroop

      and, its right back up steamrolling through the buy orders.

      • They are giving the finger to the Chinese government! LOL!

  • Paul Franklin

    This article gives the impression NEO is the only crypto falling is price, it just adds to the scare mongering. OMG is $8.33 right now, down from $10-$11. Most coins are in the red right now, it happens all the time.

  • Do not forget this happened already in the beginning of this year with the intervention of the Chinese government. They stopped the withdrawal on trading exchange, and impose strict regulations.

  • George Mac

    This article is written with no objectivity. The author seems like they’re “short” NEO and trying to drive it down. Not the best article.

  • a_eh

    Red Pulse, the upcoming ICO launching on NEO is still a go. Did you even check?

  • sircarl

    There will always be a place that allows ICOs, just create a virtual presence there. The Cayman islands have some of the worlds largest companies incorporated there, with only a small, unoccupied office space.

  • Steve Start

    THIS IS GOOD NEWS FOR NEO!

    Regulation will increase confidence and solidify market players to host these investor fundraisers. NEO and 59 others are being looked out. As long as NEO is compliant then its great news. Its reported that they have an excellent team so I don’t see this as an issue.

    If you have any brains and a slightly risk friendly portfolio you will be raiding every bank you have for money to buy these coins. They will NEVER be this low again.

  • Steve Start

    No offence Jdebunt but I can’t believe this article is number one on google news for “neo crypto currency”…
    If you read literature in the last couple of weeks you will see lots about how NEO sees regulation as encouraging.
    Don’t be scared people…two options – HODL or BUY

  • TroyH

    Nice scare tactics author! What a load of rubbish. Better sell all your Ethereum as well guys because Chinese investors “might” want to pull all their funds! *Sarcasm