China has popped the crypto euphoria by announcing a ban on ICOs and their ban announcement even says that they will punish those who have engaged in this illegal activity - ie past tense. The government further advises ICO platforms to return investors money now.
While it's not surprising that a government has intervened in the ICO market, I suppose it's a bit of a shock to see China make such an aggressive statement first.
Here is a glimpse of how the markets responded to the ban on ICOs in China:
Unless you were hoping for such a steep pullback in order to accumulate at a lower entry price, there is little solace in the chart for nervous investors (it gets even worse further down the coinmarketcap list).
I'm waiting to see what happens beyond the next day or two as China has made announcements in the past which sent bitcoin reeling and then seemingly reversed course or never mentioned it again. A few years ago, for example, Chinese authorities clamped down on off ramps from exchanges to fiat. That sent markets into a tailspin and then they recovered and it was never really mentioned again.
I've seen bitcoin crash so many times - by up to 70 or 80% - so I'm a bit used to the volatility now. I'm also a silver investor so, again, I'm used to swift, violent drops.
Good luck!
[Signed, Stacy]
