Chinese cryptocurrencies reacted to the news that China is ready to go all in on blockchain technology by posting their best 24-hour results in months, and in some cases since the 2017 bull run. BTM, NEO, ONT, and TRX were among the winners, with BTM in particular enjoying a 120% pump on the news, as the market reacted to the comments by Chinese president Xi Jinping that the country was gearing up for a blockchain arms race.
Exit Pumps or Alt Season Primers?
The reaction to the announcement was somewhat predictable given how crypto often reacts to news like this, although few people could have anticipated the level of the gains at the top end, some of which will undoubtedly have been exit pumps from some bagholders. The irony is that barely any of the projects that saw these huge gains will even find the address of the party let alone get a seat at the table as China rolls out its blockchain plans, except perhaps for the likes of VeChain, which is known to be held in high regard by Chinese authorities. Most of the rest of the infrastructure will be based around custom built, permissioned blockchains that the public may never hear of.
Pumps Get Mixed Reaction
The reaction to the weekend’s crazy price action was mixed, with some buying into the China news theory, some skeptical about it, and some taking a more political stance:
Yep the #Xipump is having an effect. Many of the Chinese coins are currently up on average 30%. Hopefully we can all have cold showers every day if #Altseason has started. @Crypto_Bitlord https://t.co/gAXLUHZMk4
— NoobiHodl ~ TechnoShark (@noobihodl) October 27, 2019
I’m going to go against the grain & tell you guys what you need to know: this is a China
SH*TCOIN PUMP & DUMP!
China is not going to use any of these garbage altcoins, mostly held by western investors.
Do not fall for this please ??
— Chico Crypto (Giving Away Eth-Jeez Greedy F***s) (@ChicoCrypto) October 28, 2019
I’m frankly disgusted by this. The cryptocurrency spirit is all about the monetary freedom and censorship resistance. The Chinese government stands for the polar opposite. Just because it (maybe) pumped some garbage coins doesn’t mean this should be perceived as a positive
— Larry Cermak (@lawmaster) October 28, 2019
As for the news itself, respected commenters with exposure to the Chinese market were in general agreement that it wasn’t just talk and that it would be backed up with action:
All I can say is this to me it’s a sign of begining of the nationalization of Bitcoin/Cryptocurrency related infra in mainland
Eventually, all things can be state-owned, or at least partially (mining, ASIC, exchanges, wallets, etc etc)
— Dovey 以德服人 Wan ? ? (@DoveyWan) October 28, 2019
The developments come on the back of efforts by the Chinese government to educate citizens on Bitcoin and blockchain, which started all the way back in July when the People’s Bank of China published an article explaining how Bitcoin and blockchain worked. At the time it was unclear why they were going to the trouble of doing this, but this weekend has seemed to answer that question.
