You'd think so, however, The ICO craze was a major driving force in bitcoins price increase as many token offerers only accepted bitcoin or ethereum, hence providing an incentive to purchase and hold these "blue chip" coins. Also ICOs are one of the three pillars of business that digital X rely on. And while China only represents 15% of the population, they were responsible for almost 400 million of the 1.5 billion dollars raised world wide by ICOs. They played a HUGE role in the acceleration of the crypto market. While I do think long term, the crypto market will prevail, I think alot of people are down playing how big a problem this is.
Overall: it's not the end of the world, but it will DRAMATICALY slow down the progression of the crypto market. The Chinese appear to be over represented in ICOs and it is sad to lose such a large group of market peers. It's in the best intrest of the major players in the crypto world to unite and try to create a platform that China is happy with, just like Google did with their censored search engines (I like how people are comparing the two entities). It will happen I'd say, and expect confidence to restore to the market. Until then though, expect a bearish market, and expect some ICOs to fall below expected benchmarks (probably not a bad thing, some of these start-ups dont need anywhere near as much money as they end up raising - uncapped ICOs that "try to let everyone get tokens" are a recipe for disaster)
Sentiment: don't panic and sell, don't be naive and stake heaps, be sensible slowly accumulate or hold until we see the market stabilise and plans to adress the massive drop in demand are set to motion.
