After losing nearly $30 billion dropping from an all-time high of more than $179 billion observed this weekend, the cryptocurrency market shows the signs of recovery.
The total market capitalization of around 800 publicly traded cryptocurrencies is on the rise. It gains momentum climbing from a two-weeks low of $134 billion observed Tuesday, Spetember 5th, 2017, to more than $158 billion today. In such a way, there is a gain of over $24 billion in just 24 hours according to the CoinMarketCap’s Total Market Capitalization Index.
The same move can be observed for the top-ten cryptocurrencies. After demonstrating a sharp decline when bitcoin dropped to $4300 on Monday from its historical maximum of around $5000, and then fell further to under $4,000, the digital currency’s price recovers constituting $4549, according to the CoinMarketCap at press time.
The price of Ethereum also rises gaining more that 11 percent at press time, according to data from CoinMarketCap. The biggest increases see Litecoin, IOTA and Ethereum Classic, gaining 17%, 13%, and 12% correspondingly.
OmiseGo token OMG experiences the upturn of more than 17 percent after losing 16.5 percent on Monday. For the record, OmiseGo’s market cap after declining to a low of $718 million, surpasses the market cap of $1B again despite of having no final product.
Such market movements are noteworthy as they come just a day after an announcement of the new ruling of The People’s Bank of China (PBoC), in the framework of which it bans all domestic initial coin offerings (ICOs) declaring them illegal, and obliges any individuals or organizations that have completed ICO fundraising return the funds.
The ICO ban is believed to be just the beginning of the government’s strategy to tighten the regulation of token sales, as the government of China wants to further strengthen control over digital currencies.
For context, a number of leading Chinese exchanges, including Huobi and BTCC, already stopped ICOs and are now working on returning money to investors.
Meanwhile, China is not the only country concerned about boosting popularity of ICOs.
The U.S. Securities and Exchange Commission (SEC) published an investor alert, which contains some tips which investors should borrow in mind to secure themselves against possible scams. In late July, the SEC also reminded investors about the necessity to register offers and sales of distributed ledger or blockchain technology-based securities, stating that ICOs may be subject to U.S. Securities Laws.
Similarly, the regulators in Canada and Singapore issued warnings that tokens offered via ICOs may be classified as securities.
The South Korea’s central bank also started to trigger discussions with financial regulators and cryptocurrency companies on the possible strengthening of bitcoin regulation.
However, some experts believe that China will eventually allow ICOs, but only on approved platforms and in safe formats, especially given that a number of central banks, including the PBoC, continue to explore the viability of issuing their own digital currencies even in a current situation.