The Neo Apocalypse, Chinese Regulations and Why You Should Welcome It

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The great crypto crash of September 4th was blamed on the temporary Chinese ban on initial coin offerings (ICOs). Investors panicked and started to sell their holdings. Not only was Neo affected, the entire market took a deep dive. Was this dip justified? Is Neo shutting down? Should we welcome regulations?

According to the Chinese authorities, token fundraising constitutes illegal public financing activity. The claim is that since these tokens are not issued by a monetary authority, they should not be in circulation. Having non-monetary authorities issues tokens disrupts the status quo. The statement came as a shock and sent prices tumbling, panicking investors and causing a snowball effect. Full Chinese statement can be read here: http://www.circ.gov.cn/web/site0/tab6554/info4080736.htm

The advent of cryptocurrency is taking world by storm. Billions of dollars flow freely in and out of the market each day. Cryptocurrency is here to stay. The blockchain currently is and will continue to disrupt countless markets as new projects arise and existing ones spread their roots. Investors are panicked by the idea that governments are ‘cracking down’.

Regulations should not be feared but welcomed. Government regulations will make it safer for the everyday investor to put their hard earned money into a cryptocurrency project. If governments do not protect its citizens, they will get taken advantage of sooner rather than later. Neo built its infrastructure and project from the start with the expectation that government regulations would be introduced. They were prepared for this eventuality. Their own token distribution was built on a model that allowed refunds to Chinese investors. They were compliant with the demands of the ICO ban even before we ever heard the rumors. On top of that they have additional funding which enables them to build their company and operate for years to come. Therefore, the ICO ban does not affect their ability to operate as a blockchain innovator.

Neo is a major benefit to China. Their blockchain technology will help Chinese companies modernize their infrastructure while staying compliant with regulations. This is an incredibly positive outlook.

The Neopocalypse is not real. It is an appropriate market correction that has to happen while Chinese authorities introduce regulations. These regulations will benefit everyone. Chinese companies will no longer have to fear operating in an uncertain environment once the proper regulatory framework is in place. China is a smart and innovative country. They want progress and they embrace technological innovation. Once the regulations are in place the Neo rocket booster will engage.

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