Bitcoin cash is soaring

 

  NEW YORK - Despite a    crackdown on the cryptocurrency market by major financial   regulators around the world this week, the market for digital   coins is rallying Wednesday with newbie    bitcoin cash among those leading the pack.      

Bitcoin cash, the clone currency of bitcoin, is up over 18% at   $651 per coin. Meanwhile, the rest of the top 10 largest   cryptocurrencies by market cap are trading higher Wednesday.   

 Bitcoin,   for instance, is up 4.7% at $4,651 per coin.     

 The cryptocurrency market was sent into a tailspin Monday after   financial regulators from South Korea and China cracked down on   initial coin offerings, the red-hot cryptocurrency-based   fundraising method.     

China declared ICOs illegal on Monday and South Korea pledged   to "strengthen   levels of punishments" for companies looking to raise capital   via an ICO.  Nearly every single digital currency was down in   the aftermath of the news. In total, the market cap of the entire   cryptocurrency market declined a whopping 20%.      

On Tuesday, Hong Kong's    regulators also suggested ICOs would fall under securities   law.     

The market for ICOs has grown exponentially in   2017 with more than $1.8 billion having been   raised via the method, according to an email from financial   technology analytics provider Autonomous NEXT.   

To raise cash through an ICO, a company issues a new   digital currency that can either be spent within its ecosystem, a   bit like Disneyland dollars, or used to power   part of the business.     

Sebastian Quinn-Watson of Blockchain Global, a bitcoin exchange   operator, told Business Insider in an email Monday morning that   the legal crackdown on ICOs is "absolute win" for the   cryptocurrency community because it will weed out illegitimate   ICOs.     

"The changes in regulation will take a lot of the bad actors out   quickly," Quinn-Watson said.  "Excellent result for every founder   who has a good product, a sensible and well structure token sale   process, and an international outlook."     

Cryptocurrency investors appear to agree with Quinn-Watson's   thesis. 

 The market has recovered over $20 billion in marketcap   since Monday's bottom.      

Ethereum, the blockchain on which most ICOs are powered, is   also rallying alongside bitcoin and bitcoin cash. It's up 5.4%   since Tuesday at $337 per token.      Litecoin, which surpassed $90 last week before tanking well   below $70 on Monday, is on track to recoup its losses. It is   higher by 7.9% at $79 per coin.     

Wild price swings are not atypical in the cryptocurrency world.    As such, Monday's price massacre will likely not be the last.     

Greg Dwyer of BitMEX, a   bitcoin mercantile exchange, remembers bitcoin's early days when   30% drops were part and parcel with trading the digital   coin.     

To newcomers not accustomed to such volatility, he says "welcome   to crypto-trading."