Altcoins

Good news for South Korea could be good news for ICON

from The Coin Radar 5 years ago 0 0 749

News came out two weeks ago that South Korea is planning to legalise ICOs once again, which could be good for ICON.

Whilst this proposed legislation is only set to cover those initiated by public organisations and research centres, rather than private companies, it regardless signals a sea-change in the South Korean government's approach to blockchain technology.

South Korea is the World's third largest cryptocurrency market, behind Japan and the USA. Cryptocurrencies are much closer to the mainstream than in almost all other countries. Indded, and an estimated 31% of the country's working population have invested in Bitcoin and other cryptocurrencies.

But what does this have to do with ICON (ICX)?

Having been dubbed South Korea's 'national blockchain' it can be assumed that, alongside ICOs such as Blue Whale and AD4th, we shall see a new raft of South Korean ICOs being hosted on the ICX infrastructure, which will increase the utility of ICX.

What does this have to do with price?

Consider Ethereum's price during January and February, as top ten mainstays such as Bitcoin, Ripple, Cardano and Litecoin were tumbling daily, Ethereum remained resiliently above $1,000 for most of the time.

And why? Because the ICO craze was still in full swing. ICOs such as CargoX, BeeToken, Trinity and GEMs were selling out within hours or even minutes as people happily fought their way through and over increasingly arduous hoops and hurdles in the hopes of getting onto one of the much-vaunted whitelists.

The primary payment option? Ethereum. It is no coincidence that Ethereum's price started to drop as the whirlwind of new ICOs began to dissipate.

So, whilst it does not necessarily follow that ICX is going to moon just because ICOs may once again be legalised in its 'home '- as much as a decentralised currency can have a home - country, it does seem likely that an increase in usage will lead to an increase in demand.