Red Monday selloff: $20 billion wiped off market value
It's discount week once again Steemian friends as altcoins get a shedoff of their value.
The market had a downturn shading off slightly more than $20 billion within 10 hours of trading Monday. The reason for this selloff hasn't been fully established but we can see, it isn't pretty!
Bitcoin's November Hardfork; some investors believing before another rally, there has to be a slight downturn of BTC's value and the altcoins have to follow suit. This is going to cause the market cap to reduce even below $130 billion .
China's annoucement of illegal ICOs; the declaration that ICOs are illegal is not surprising. As more investors were hyped by the good fortune they provide. This doesn't come easy on them.
Here's what Bloomberg had to say;
“This is somewhat in step with, maybe not to the same extent, what we’re starting to see in other jurisdictions -- the short story is we all know regulations are coming,” said Jehan Chu, managing partner at Kenetic Capital Ltd. in Hong Kong, which invests in and advises on token sales. “China, due to its size and as one of the most speculative IPO markets, needed to take a firmer action.”
A cross between crowdfunding and an initial public offering, ICOs involve the sale of virtual coins mostly based on the ethereum blockchain, similar to the technology that underpins bitcoin. But unlike a traditional IPO in which buyers get shares, getting behind a startup’s ICO nets virtual tokens -- like mini-cryptocurrencies -- unique to the issuing company or its network. That means they grow in value only if the startup’s business or network proves viable, attracting more people and boosting liquidity.
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