Cryptos are feeling the pain today, however, the pain isn't that bad. The crypto king, Bitcoin is down by 2.72%, this isnt something which is going to fright investors. There have been several rumors that a rigorous regulatory environment would abolish the cryptomarket. There is no disowning that the regulatory stance from countries like China and South Korea has pushed the cryptocurrencies lower because of the enormous noise in the market.
Generally speaking, regulations are good, but only to an extent because over-regulatory environment becomes burdensome, but a balance regulatory environment provides protection for investors – at least to some extent. But by saying that we are going to ban a concept or a digital currency isn’t the right attitude perhaps. We all know that Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL) and a few other major corporations aren’t allowed to carry their business in China. But that doesn’t mean that these firms have performed really badly over the course of time, certainly no! In fact, companies like Facebook and Google have followed only one trend when it comes to their growth rate and this trend is skewed to the upside.
South Korea has taken another stringent step towards cryptocurrencies and in their document released on Jan 23, the country made it clear that it will only allow trade in cryptocurrencies from an established entity- well-known bank accounts. This rule has kicked in today hence we are seeing some pressure in the market. Remember South Korea does play an important role in terms of the total volume of cryptocurrency- about 20 percent of the trading activity.
But we have seen this film way too many times and effects of these events are only for a limited time. The ICO market is still running incredibly hot and the ICO conferences still seeing huge demand at their events. The concepts at these conferences try to resolve the issues by using the blockchain technologies and investors want to find a token which has a value. Iqoen, which uses Ethereum blockchain mechanism represents an infrastructure, which would allow integration of games and services has raised 1.9million in their pre-sale and yet there are still a few more hours left.
I think regulators could try to create a security for consumers but it may be not the right idea to think that with their involvement, the crypto market will die out altogether. I think Bitcoin is in a consolidation mode now because of the heavy adverse news flow but once these clouds will clear off, it is more likely to make record high headlines again.