Ineffective oldoini, or as they are called, sidoine (shitcoins) (from the English. shit shit), there are in any country. However, in the entire short history of cryptocurrency it is China that managed to become famous for creating the greatest number of useless coins and tokens.
In General, the country is known for its large number of talented specialists who have made great contribution to the development and promotion of the cryptocurrency industry. But for some reason this progress was not reflected in the Chinese ICO, most of which disappears, not having time to become popular.
Problems in the Chinese cryptocurrency industry
In a period of rising prices, investors are checking your portfolio every five minutes. And no wonder, because after each update can be detected once earned $ 500. In the period of decline in the market, on the contrary, the portfolio is often not checked for a few days to see how the falling value of your assets — not pleasant. And with the Chinese or ICO Althingi this happens over and over again.
At the moment, the market alithinou experiencing a phase of decline. Bear markets are not rare, however, amid a General decline in mass surrender is the Chinese oldoini. Among them are especially distinguished by those that were running as ICO «Chinese Ethereum» — NEO. For some unclear reasons, the projects at NEO show themselves with a very unfavorable side. Why did this happen?
What’s wrong with NEO?
Recently, the NEO project was subjected to so many attacks that he Willy-nilly had to try to answer criticism. If we talk about failed projects running in the blockchain NEO here NEO while can be justified. The project itself is not NEO’s fault that investors do not believe in long-term fundamental factors RPX and DBC, as well as almost all the other tokens in the Chinese blockchain. In fact, the only ICO in NEO that has not yet failed, it Zeepin, and that is because he is only a month. All remaining – ONT, IAM and NRV – too young to mention.
Any cryptocurrency platform has its history of failures. Ethereum failed in the beginning due to the fiasco with The DAO. On the other hand, for each DAO was ERC20-tokens 0x or BAT, which turned out to be long-term and real usage scenarios. The only thing what famous tokens NEO NEP-5 is that they became «good» with stones on the necks of their hapless owners. Of course, these Chinese projects still have a chance to recover, and when they come back, they are to a certain extent it will. However, at the moment it looks not the best way, and the situation does not Bode well for other ICO on NEO. Honestly, a ICO of this year have a similar problem; NCASH (another Chinese project, this time ERC20) also looks gloomy. DBC and RPX a failure.
Why Chinese oldoini fail?
Anyway, to draw conclusions about the whole country, without resorting to primitive stereotypes, is quite difficult. The presented observations are from the Chinese cryptocurrency sector, and should not be used as an accusation against all the others. On the other hand, the problem is not just limited to Chinese coins. From the point of view of the West, one of the main obstacles for investment projects in China is the language barrier in combination with a limited online presence many Chinese entrepreneurs because the fundamental analysis of the projects in this country is very difficult – much harder than in the US or Europe.
The situation is aggravated, and sometimes contribute to it, not too neat Chinese projects, making unsubstantiated statements about the presence of impressive partners. To check such assertions is very difficult, so investors rush into the pool with his head and burn when the promised partnership to be a hoax. As an example, consider the token Node Token Internet.
Cryptocurrency INT has nothing to do with NEO, but she is doing just as bad as all the listed Chinese alithinou. In January, the INT was heavily advertised number of well-known traders who thought he had found a diamond in the rough. However, «diamond» proved a dud, and now traders are left to try to reduce losses and quietly leave the project. Another characteristic of China’s problem lies in the fact that many of the ICO to NEO associated with artificial intelligence, and most of the statements about the AI is very difficult to check. How to understand what the product is real, and which in fact does not exist?
The last serious problem affecting Chinese ICO, relates to the counterfeiting and plagiarism. The industry of fake goods in the country turned into billions of dollars, the same can be said about the market value assigned to pseudo-Althingi, which are nothing more than shameless forgery. And yet, this problem applies not only to China – lime team members and Whitepaper is an international problem, however, the share of China is too big.
Leave feelings at the door
Trade cryptocurrency – it’s a cold game in which there is no place for emotions. And no matter what some Chinese blackany are functioning quite well, and some of the best solutions to scaling Ethereum and the most promising projects of the second layer originate from the East. What is really important — judging by the statistics, investing in the Chinese tokens you greatly increase your chances of getting losses. And since to distinguish the real from the fraudulent projects is difficult enough, experienced investors may prefer to look for luck elsewhere.