The consequences of the Chinese ban were not long in coming
After news from China about the ban on financial activities related to cryptocurrencies, the first reactions from large companies followed. Some of them do not yet know exactly how to act in this situation, while others have already announced the move or the closure of their units in the country.
The ban on trading digital currencies in the Celestial Empire has thundered across the entire crypto community. After that, the total market capitalization of cryptocurrencies fell by almost 7%, with more than 6.5% being in Bitcoin and 9.2% in Ethreum. The Crypto Fear Greed Index, meanwhile, has moved to the "fear" level, although last week it was in a more neutral position.
One of the first to announce the closure in accordance with the regulatory requirements of the Chinese authorities was the largest Ethereum mining pool called Spark Pool. Its representatives declared their readiness to cooperate with local authorities and hastily announced the termination of the provision of services to users of mainland China. Following Spark Pool, NBMINER, which produces software for mining with video cards, announced the termination of customer service in mainland China.
Mining companies Marathon Digital Holdings and Riot Blockchain also quickly felt the effects of the Chinese ban on their shares. Shares were the first to plunge 6.2%, while Riot Blockchain “improved” its performance, shedding more than 6.5%. In addition to them, the actions of the PRC were reflected in the shares of Hut 8 Mining Corp., which fell by 5.3% of the value, as well as Bit Digital, whose indicators fell by 5.35%. The incident "touched" even such giants of the industry as MicroStrategy, whose shares lost 4.15%, and the COIN of the largest American cryptocurrency exchange Coinbase lost more than 2.9% in value.
Cryptocurrency companies have also begun quick action to “save” the business. So, Cobo, which recently received $40 million in funding, announced the transfer of headquarters from Beijing to Singapore, like most other Chinese crypto businesses. FTX officials have reported that their headquarters have been "relocated" from Hong Kong to the Bahamas. The head of the exchange, Sam Bankman-Fried, said that this step was taken in view of the more favorable position of financial regulators.
In addition to those listed above, the most obvious indicator of the market decline was the two largest exchanges, whose audience mainly consists of Chinese citizens. We are talking about OKEx and Huobi, whose own tokens fell by 18.9% and 23.6%, respectively. Their fall seems especially strong in comparison, for example, with BNB, which fell by “only” 9%.
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