It has been just over 30 days from the start of the year but the cryptocurrency world has given us more than a few jolts and rollercoaster up and downs.
This is an industry that is not new to sudden highs and lows and it is still early days to actually determine what the overall outlook for the year might be. The latest stressor that caused the crash we have witnessed has emanated from India, where its finance minister alluded to imminent crackdowns on the crypto world in the growing Asian country.
But it is China and not India that most experts in the cryptocurrency world are more worried about. In the third quarter of last year, the Chinese authorities with little hint swept into a swift crackdown on the cryptocurrency world within is territory, with an operation that saw the indefinite suspension of all ICOs within the country, and its biggest exchanges been forced to close shop and relocate to Hong Kong. And more recently, rumors began filtering through that the second wave of the crackdown is imminent, which will this time target the huge industrial scale Bitcoin mining outfits dotted in some of its remotest regions where cheap electricity is available.
Despite the increasingly tough stance, the Chinese government is taking on the cryptocurrency industry, it is worth mentioning that overall, the industry continues to thrive (although mostly underground) as the hunger for digital assets still remains insatiable.
Chinese based cryptocurrencies such as NEO and VEN have all witnessed and overall appreciation in value, despite the ban. NEO, for example, has at a time quadrupled its price and currently trades at just under $120 compared to the $39 price before the crackdown last year.
This has led to widespread rumors across the crypto universe that NEO is indeed in cohorts with the Chinese government and has been given unfair advantage by the authorities who despite their tough action on the industry, remains the government that has shown the most interest in adopting the blockchain technology and digitizing its own currency to mirror the new realities on ground. The NEO CEO Da Hongfei was recently quoted to have said that the platform is well adjusted to state rules and that their platform will have no issues with regulators. With him and other well-known Chinese cryptocurrencies bosses been invited to a recent government conference on Trustworthy Blockchain, it is clear that NEO is carefully trying to circumvent what are treacherous waters, as the platform is keen to retain its Chinese roots, without upsetting the government.
VEN and WTC are also very popular with Chinese cryptocurrencies buyers, and what unifies all these currencies is that they are mostly created with unique features and a serious tech backup that will see them posing a great threat to any bigwig within their respective niches.
NEO has been previously tagged by some as the “Ethereum killer” but with the government breathing down on the industry overall, NEO continues to face a bit of investor skepticism and fear internationally. But if the prices are anything to go by, NEO seems to be doing fine, as the domestic market, which is among the biggest in the world, seems to be supporting it just fine.