Former Yunbi COO: Blockchain Startups Will Vanish In China And He Favors NYA
As a veteran in the digital asset market, Laomao, former COO of Yunbi, recently shares his insight on the future of Chinese blockchain startups. The story is so popular that it has gained over 20k views. Although common people are blocked from ICO, he encourages people to hoard major digital assets in their investment portfolio. He calls on community consensus to scale following NYA, saying it’s a precious opportunity to heal the wound. Sadly though, the prediction is that there would be no grass-root blockchain startups in China other than those backed by existing internet giants. Monopoly will prevail in the market.
“No matter how the world evolves, the world of blockchain will not stop its footsteps. The regulation storm may seem overwhelming at the moment but it will be remembered as a small dent in the history.”
The impact of ICO ban is going to be extended for two reasons, he said:
“In any case, regulatory policy needs to be kept consistent. It is not just a face problem. The regulatory authorities themselves also need a time window to observe the reactions. Therefore it’s impossible to see any public trading platform that offers CNY trade pairs within the next six months.”
The absence of exchange will drive traders to other channel like OTC, just like what they have been practicing after the “deposit ban” in February, 2017. This will lead to the opposite of what regulators would have hoping for: rise of bitcoin.
“It is difficult for general public to acquire such assets at a lump sum in a safe manner. On the other hand, the asset holders, if not in urgent need to liquidate or losing hope on future price, are not motivated to sell. However, the holding of such assets will cause shortage of supply in global market. As the global blockchain industry is still in great momentum, the demand for Bitcoin is still increasing and the price of Bitcoin will continue to rise in the future.”
Laomao also warns not to underestimate the impact of hot money.
“As the price of mainstream assets such as Bitcoin rises due to shortage, it will driver holders of altcoins to sell their assets for Bitcoin, which will be conducted via exchanges across the world. So in the next phase, the mainstream digital assets will absorb more liquidity against altcoins. It is almost inevitable that the price of the altcoins price against bitcoin will fall. But the situation will change at any time because of the involvement of “hot money”. Do not underestimate these hot money, their ability to change is beyond your imagination. Once enough profit is spotted, no one can stand in their way.”
Personally, he favors NYA a bit more for the upcoming fork in November 2017.
“I personally prefer the NYA, which is an opportunity for Bitcoin to scale based on consensus and shall be cherished by the whole community. “
Many ICO projects simply ban Chinese users from participation due to the Chinese government’s regulation. Most people are not able to get access to
There will be no more blockchain startups in China.
“As the blockchain startups in China are blocked from funding through ICO, many small blockchain startups will die due to the lack of funding and profitable business model. However, other blockchain projects backed by BAT (Baidu, Alibaba and Tencent) and other large enterprises will clone the monopoly mode inthe era of Internet. The only door for ordinary people to participate in the high-tech field has finally been closed. Inside the door, there will be nothing left but a few giants.”
However, blockchain innovation will continue to evolve on a global scale and eventually it will change the world.
“Blockchain is not only a technology and also a brand new economy paradigm, which will exert profound influence to the world. Eventually, the impact will change the world’s economic landscape.”
At the end of the article, he offers some suggestions to the common people. Hoarding is still the best option for the average investors.