It is fairly evident the Bitcoin price decline is dragging all other major currencies with it right now. Some of these currencies note much higher losses than what people would expect, though. NEO is one of the currencies swept up in the China ICO ban, which is heavily affecting its market cap. With another 9.88% decline in value, NEO ‘s market cap may very well go below $1bn soon.
NEO Price Woes Grow Even Worse
The past two weeks were not easy for NEO by any means. First of all, the currency is hurting because of Chinese regulators’ decision to ban cryptocurrency ICO activities. All existing projects issuing tokens to Chinese investors have to refund customers. NEO will have to do exactly that, although no specific have been unveiled at this point. Most ICO projects have yet to figure out a proper refund procedure, for obvious reasons.
Secondly, there is this week’s rumor from China involving the potential suspension of all cryptocurrency trading. Although things have not gotten to that level, the misinterpreted news successfully spooked markets all over the world. As a result, all top cryptocurrencies are bleeding value as we speak, including NEO. In fact, this altcoin is taking a severe beating despite trying to mount a small comeback earlier this week.
Right now, one NEO is valued at $20.91. That is still a respectable price, even though the currency has seen an all-time high of well above $40 not too long ago. Many people believe this ecosystem can eventually become the improved version of Ethereum designed specifically for the Chinese user base. Whether or not the project can ever live up to those expectations, remains to be seen. It is certainly true hardly anyone will use NEO to issue an ICO in the near future. At least, not until China has introduced some proper regulation for this business model.
Moreover, it appears a lot of people are more than willing to part with their NEO at any price possible. That would certainly explain why the price is going down so quickly, even though the currency only has $49m worth of 24-hour volume. Compared to how much volume this currency usually gets this $49m is rather poor. Then again, a lot of platforms have frozen NEO trading until the regulatory situation improves in China.
Interestingly enough, the trading volume is still getting a helping hand from Chinese platforms. Both Jubi and Yuanbao are actively trading NEO against the Chinese Yuan as we speak. Yuanbao values this currency at $16.97, which is a lot lower than the current market average. Jubi on the other hand just displays the regular price. Do keep in mind statistics from both platforms haven’t been updated for several hours now. Other exchanges on the list for NEO include Bittrex, Binance, and Bitfinex. All of these markets trading the currency around its current price point.
Right now, it is unclear what the future holds for NEO as a currency. Until the dust settles in China, more losses are to be expected. With the market cap of this coin shrinking to %1.03bn, it seems to be a matter of time until it dips below the $1bn mark. NEO has also fallen out of the top 10 cryptocurrency list by market cap, although it still has a lead over BitConnect. An interesting situation to keep an eye on, though, as markets tend to rebound pretty quickly more often than not.