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Amid ongoing Chinese restrictions of crypto, is it wise to buy NEO and TRON?

on May 25, 2021
Updated: Jun 22, 2021
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  • The recent crackdown of cryptocurrencies in Beijing has sparked quite a lot of worry among investors.
  • Chinese regulators have tightened their restrictions for companies that provide cryptocurrency services.
  • NEO and TRON holders are worried their value might drop.

As of recently, China restricted financial institutions and really any payment company from providing services that are related to cryptocurrency transactions. However, this might not be as serious as you think, as it is not the first time China has attempted to restrict the trading market.

Individuals in China can still use their local banks and exchange Yuan for cryptocurrencies, assuming they do not indicate a transfer is meant to buy Bitcoin BTC/USD or Ethereum ETH/USD.

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Looking ahead

While China has indeed restricted cryptos, it’s not the end. Still, you need to be prepared for the market to swing widely amid confusion and unclarity. In fact, the entirety of the market has seen a downward spiral recently, especially cryptocurrencies whose roots trace back to China. Neo NEO/USD is considered the first public blockchain to develop in China by Da Hongfei and Erik Zhang. TRON TRX/USD has direct ties with the Chinese central government as it serves as an advisor to China’s national authorities.

These two China-centric cryptocurrencies are available to investors worldwide and amid a potential widening Chinese crackdown, many investors are wondering if NEO or TRX is a safer bet.

Neo is a competitor to Ethereum and offers a platform for developers to create decentralized applications and smart contracts. TRON is a blockchain-based operating system that attempts to ensure that the tech is suitable for everyday use. 

Should you keep TRON?

As of May 25, TRON has a value of $0.075. Just a month ago it traded at $0.105 which implies a 28.7% in just a month.

Moving back even further to late March, TRON price was at $0.056. This means that despite the selloff, Tron is still more valuable today than it was two months ago.

If you see it fall under $.050, then it’s a hard sell, however, at its current value of $0.075, you should probably hold onto it for a bit longer.

Should you keep NEO?

At the time of writing on May 25 NEO has a value of $54.86. Just a month ago on April the 25, its value was at $82.57 which implies the value fell 33.56%. Let’s take a look back even further before evaluating a trading idea.

On March the 25 the value of Neo was $40.97. This being the case, we can come to the conclusion that from March the 25th to April the 25th, NEO is still 33.9% more valuable than it used to be. It might be a smart idea to hold onto it, given the fact that it has recently started to go up in value again, and has the potential to hit the $80 mark sometime in the future. However, if you ever see it start to go under $40.00, you should probably sell it.

News impact our skepticism more than the value

When we look at the numbers, we can see that, in both TRON and NEO, we can see a 33% increase in value than it was two months ago. While the two coins did indeed decrease in price within the last month, if you bought it two months ago, you’re still in the green and probably have nothing to worry about. 

News such as the China restrictions will constantly pop up, this is the truth behind the increase in popularity of these currencies, however, cryptocurrencies as a whole have remained strong, and the chances are high that they will go forward as well.