10 Reasons Why NEO Is Not Dead After the Chinese Ban on ICO
The People’s Bank of China (PBoC) put a halt to the ICO frenzy early September when they released a statement outlawing organizations/persons in China to raise funds via ICOs. Following that news, all upcoming ICOs were put off, including Red Pulse. The announcement had also plummeted the price of NEO. Does that mean NEO is dead?
Disclaimer: The content below should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.
Is NEO Coin Dead After the Chinese Ban on ICO?
I bought NEO when it was priced at $2 and have never sold any single one. Even after the ICO ban has sent NEO all the way down to $20, I never regretted holding on to it. In fact, this is the right time to buy more while the regulation spooks the majority into panic selling. Here’s why.
#1 The ICO ban is a response to the increasing number of scams, speculation, and Chinese shit-coins popping up. Caixin quotes a source that said, “90 percent of ICO projects are suspected of illegal fund-raising and intentional fraud”. One has to take note that it is not a ban of cryptocurrencies like NEO, BTC or ETH.
#2 NEO strives to be a bridge to the old financial system, with smart contracts, certificates, identity and legal compliance. Back in 2013, China made it very clear that it doesn’t consider Bitcoin a currency or legal tender, and that it shouldn’t be used to pay for real goods and services. They even went as far as banning banks and payment companies from using it. The government has never outright endorsed any crypto currency.
However they have recognized that it is impossible to stamp out crypto use in China, so they are now encouraging the development of domestic cryptos, such as NEO. While NEO is an open source blockchain project, without the support and cooperation of the Chinese government, it likely cannot succeed at scale. In fact, NEO developers are working directly with Chinese certificate authorities to integrate real-world assets into smart contracts, according to a report from Bitcoinist. The founder, Da Hongfei is appealing to the government in order to legitimize NEO, thus pushing it towards mainstream adoption. So far, he’s been quite successful.
#3 NEO is already tackling many of the scaling issues that tripped up Ethereum. Tackling issues before massive market exposure will be a positive for the digital currency in the future. Ethereum’s grapple with scaling issues has shaken overall investor confidence. NEO is going to stay and grow big no matter what, with multiple multimillion-dollar Chinese companies — including Alibaba, China’s central e-commerce retailer.
#4 NEO has partnerships with companies such as Alibaba, Microsoft, and WINGS. NEO’s partnership with Alibaba is related to Ali Cloud. NEO’s partnership with Microsoft is related to R&D. One project they’re working on involves building a “blockchain-powered digital legal evidence repository”. WINGS is a DAO-like organization in Europe. It has an R&D partnership with NEO, with the added focus of bridging Western cryptocurrency communities with the Chinese cryptocurrency community.
#5 At the time of writing, the only American exchange you can buy on it Bittrex by using Bitcoin as payment. Can you imagine what the price of NEO will be like when it can be purchased everywhere like ETH or BTC?
#6 NEO has adopted a very similar operation strategy to Ethereum’s, but with clear differences that have proved advantageous. To start with, it is compatible with multiple languages like Microsoft.Net, Java, Kotlin, Go & Python. Whereas Ethereum’s support is limited to Solidity, a proprietary language developed by its own developers. That simply means NEO attracts a lot more developers. Because greater inclusiveness of programming languages reduces the barriers to entry for developers since they aren’t required to learn a new language to write smart contracts or work with NEO.
#7 Professionalism and legitimacy – The ICO recall storm has taken has reached a fever pitch today – NEO Council has decided to allow refunds for NEO purchased during their ICO rounds (pre-rounds, ICO1 and ICO2). Any participants who have contributed funds during these rounds can now refund their NEO by emailing firstname.lastname@example.org. At the time of writing, the refund is voluntary for NEO holders and the current value of NEO is greatly above the initial ICO price.
#8 NEO is positioning itself, (alongside Ethereum), at the forefront of blockchain tech with its innate support for digital identity-backed smart contracts, ability to communicate with other blockchains through a cross-chain protocol, quantum resistant cryptography, distributed storage protocol and secure communication protocol. The aim is to build a globalized smart economy, wherein the trust factor between participants is enhanced through digital identity. However, the laymen always relate NEO to ICO and that caused the panic selling this September.
#9 If ICO is one of the factors that sent the cryptocurrency market down, I would be more worried about holding Ethereum as to me, Ethereum seems to be trying to promote as many ICOs as possible (since ICOs explore new applications of dapps), whilst NEO is racing ahead to build a digital currency platform where real-world assets can be traded securely and fairly. If you read the mission of NEO, they want to use the integrity and security of the blockchain to facilitate a safe and fair trading of real world assets via smart contracts.
#10 The increasing acceptance of cryptocurrencies may give rise to new preferred payment methods. Developments in smart contracts would also allow businesses to automate fulfillment of agreements thus speeding up transactions. Enhanced security would also inspire increased confidence among businesses and consumers. Ethereum may have the same vision but NEO probably will overtake Ethereum one day because it will be another Baidu, Alibaba, Wechat in China. If you know who Alibaba is, you would have purchased as many of these NEO as possible.