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NEO Investment Overall Score: A+

NEM GROWTH POTENTIAL: A
NEM SUSTAINABILITY SCORE: A-
NEM BRAINS BEHIND CURRENCY: A+

NEO

NEO is a popular altcoin and competing cryptocurrency to Bitcoin.  Sometimes called “Chines Ethereum,” NEO has deep roots with Chinese investors and was founded in the country.  The idea of NEO was created in February of 2014.  It was then known as Antshares and specialized in building a platform that provided companies the ability to create decentralized apps.  This technology shifted into NEO and Onchain, founder Da Hongfei’s blockchain consultancy.

NEO became popular to investors worldwide in June of 2017.  Trading volume began to greatly increase once NEO became exposed to many of the major bitcoin exchanges.  It quickly found its way into the top 10 of cryptocurrency market cap.

June, 2017 saw NEO cap out with only a market cap of $400MN.  NEO was far from one of the largest cryptocurrencies and much more a small altcoin.  In 2018, everything changed for the currency.  NEO went full blown rocket ship and saw its market cap rise all the way up to $10BN in January of 2018.  It now consistently teeters between the 6BN-9BN mark for market capitalization. 

To date, NEO has made a lot of happy investors, especially those who got into it early.  It’s almost a “twenty bagger” in terms of investment return.  The currency is very attractive in terms of functionality and transaction speed which has accelerated its rise in value.

NEO allows for Smart Contracts, much like its sister currency Ethereum.  It does have many differences despite relying on some of the same disciplinary values.

Why NEO Grew in China:

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One of the reasons NEO is enticing is the fact that holding it generates “GAS.”  GAS operates like a dividend in stock.  NEO pays its shareholders in GAS, a part of the currency, which can be bought or sold for returns.

NEO also operates a virtual machine in its blockchain that enables coders to create C#, Java, Python, and many other coding languages.  The end user can then customize its experience in a way that is more efficient than Ethereum.  It uses dBFT (delegate Bryantine Fault Tolerance) to authenticate and certify transactions made on its blockchain.  NEM currently leverages over 1000 Transactions per second, a number that is expected to go up with further work.  By comparison, Ethereum offers 15 transactions per second.  Bitcoin trails in third and offers a mere 7 transactions per second.  NEO wins out in transaction speed and that has led to a rise in its value.

One of the difficulties NEO had in coming to market is dealing with Chinese based regulation where founder Da Hongfei is located.  The side project Onchain proved to be very important for the growth of the cryptocurrency.  It helped with much of the red tape. 

Onchain saw its growth prior to the NEO rise of 2017.  Its first successes started in 2016, where Antshares became the first blockchain company on the vital Chinese Hyperledger.  This led to DNA, Distributed Networks Architecture, that allows blockchain to communicate with government regulations and comply efficiently.  DNA’s end goal is to facilitate cross-chain communication with other cryptocurrencies.  It’s a brilliant, but is it attainable?

In 2016, Onchain partnered with Microsoft China.  It then partnered with legal specialist FaDaDa and Amazon of China, Alibaba, to address gaps between blockchain technologies.  The goal is for platforms to make use of existing technology and partner it with blockchain without getting too complicated.  These partnerships earned Onchain a nomination for Top 50 fintech companies in China.  This left many wondering: who is Da Hongfei?

Da Hongfei and China

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NEO blockchain was founded by a man named Da Hongfei.  In addition to NEO, Hongfei is the founder of Onchain which works closely with NEO and will someday be integrate. 

Onchain specializes in creating decentralized applications for professional organizations and educational institutions.  Earlier in this article we covered how Onchain is a highly efficient consultancy that works with blockchain.  Their goal is to allow for ease of integration with independent applications as well as other applications backed by a different blockchain.

Despite being quite famous, Da Hongfei is not really one to look for media exposure or publicity.  He has four tweets in 2018 and rarely takes public interviews.  He is open to public feedback and does respond to Reddit from time to time. 

He’s not as mysterious as someone like Satoshi Nakamoto of BItcoin, but Hongfei still keeps a low profile.

While he may not make himself that available, Hongfei is known to be one of the top names in CryptoCurrency.  He is particularly well known and popular in Asian markets.  There, he founded many of the projects and techniques used in Blockchain and Cryptocurrency in China.

Hongfei has done a lot to get in on China’s good side, which is why it’s important to know how deep his ties with China are.  China touched on the paramount importance of blockchain technology in the next five years in a Five-Year plan that recently was published and can be found here on the US Government Publishing Office website. 

China views Cryptocurrency as one of the staples of future commerce.  They are interested in safety and sustainability.  They are also in favor of its innovation.  This makes a relationship like Hongfei’s Onchain incredibly valuable as he has an inside track with one of the top world markets.  Not many governments are as progressive around digital coins as China is.  Being one of their favorites makes NEO an enticing investment opportunity.

NEO Supporters:

Tom Lee of CNBC seems to think that Crytpocurrency will see a rotation in 2018 from Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, to “smaller” and more affordable altcoin choices.  One of these choices is NEO.

Many supporters of NEO love to talk about the GAS as a reason to be a supporter.  Others simply cite favoritism with China as a good reason to invest in NEO.  The cryptocurrency has been a top 5 return on investment since ICO.  There is a lot of reason to think that growth will continue.

Rumor has it that NEO will be seen on Coinbase soon along with Ripple (XRP).  Only time will tell if the coin has enough fans.  Such activity usually results in an investing spike.

NEO Haters:

The haters of NEO hinge on China.  Many theorize that NEO can’t exists sustainably given the number of times Chines regulations have begun to ban ICO’s and crypto investing in general.  If NEO does get hit with some sort of geographic restriction from China, it could absolutely kill the value of the coin. 

NEO has seen large scale pullbacks in December of 2017 to February 2018.  Many see this as a warning sign.  I personally see it as all the markets flocculating together off Bitcoin pricing.   The current market has less to do with NEO and regulation and more to do with volatility of opinion in where cryptocurrency stands in our future.

Conclusion:


To the naked eye, NEO is dominant and looks a great hourse for an investment.  is the most successful cryptocurrency in Asian countries to date.  It is a major success story and trades around the world.  It is the number one traded coin with investors in China, South Korea, and Japan.  NEO rates on most of the top exchanges, particularly ones like Binance. 

If you’re looking to invest, you’ll likely have to deposit to Coinbase and transfer funds to Binance.  We have more information on that here.

Thanks for reading and happy investing!