Every country produces its share of underperforming altcoins. They’re called shitcoins for a reason. But China has a track record for creating altcoins that are shittier than most. The country has spawned a slew of talented developers, and has made a huge contribution to cryptocurrency adoption and innovation as a whole. But when it comes to altcoins, China’s wither and die at a phenomenal rate. The question is, why?
Also read: NEO Is Either a Raging Success or a Total Disaster
Big Trouble in Crypto China
During bull markets, checking your portfolio every five minutes is unavoidable. It’s addictive: swipe down to refresh and you’ve gained another $500. During bear markets, the opposite is true; it’s possible to go days without checking, because it’s easier to hide the pain than open your Blockfolio and discover how far underwater your bags are. If you did buy into any Chinese ICOs in the last three months, or purchased any Chinese altcoins, there’s a good chance they look like this:
And this:
And this:
And this:
And this:
And this:
Altcoins are in a bear market right now, but there are bear markets and then there’s total collapse, and Chinese altcoins have capitulated on a grand scale. There’s something all six of those coins – deep brain chain, red pulse, alphacat, trinity network credit, the key, and qlink – share in common aside from an Asian connection: all were launched as NEO ICOs. For reasons that aren’t immediately clear, NEO projects have been doing really badly. They’re not the only Chinese coins to have gone belly up – we’ll get to that later – but they’re among the most notable failures. How did this happen?
Something Rotten in the State of NEO
Every trader has their share of heavy alt bags to carry
NEO’s came in for a lot of stick lately, so much so that the project was forced to break its silence to fend off the worst of the criticism. When it comes to the failure – thus far – of the projects to have launched on its blockchain, NEO can be absolved of blame. It’s not NEO’s fault that investors don’t seem to believe in the long-term fundamentals of RPX and DBC and virtually every other token on the Chinese blockchain. In fact, the only NEO ICO that has yet to fail is Zeepin, probably because it’s only a month old. The remainder – ONT, IAM, and NRV – are too new to have been listed.
Every ICO launchpad has its share of failures; ethereum failed straight out the gate thanks to the debacle that was The DAO. But for every DAO, there was a 0x or a BAT, ERC20 tokens that proved to have longevity and a tangible use case. All NEO’s NEP-5 tokens are good for is as millstones around the neck of unfortunate
