What is NEO?
Updated: Sep 14, 2021
Founded back in China in 2014 by Da Hongfei and Erik Zhan, NEO’s old name was AntShares.
Later it was rebranded as NEO in 2017. It is a typical blockchain-based platform with its own cryptocurrency and allows the development of smart contracts and digital assets. For this purpose, it looks like the U.S.-based Ethereum network.
NEO’s objective is to automate digital asset management by using smart contracts. However, the company’s main aim is to build a distributed network based on the smart economy system.
How does Neo work?
NEO’s platform is great for developers as it enables them to use its software to manage smart contracts, also referred to as NeoContracts, and develop new dApps to replicate actual products and services.
NeoContracts are entirely different from standard smart contract-based protocols where developers can design new programs using common programming languages such as C# and Java.
Hence, NeoContract can work across different languages, and it is the main attraction for most developers who want to develop dApps or support existing ones.
Neo Security using Delegated Byzantine Fault Tolerant
Neo uses a consensus mechanism known as delegated Byzantine Fault Tolerant (dBFT) to secure the network and blockchain and synchronize the network.
The working mechanism of NEO’s dBFT is the same as DPoS and offers a real-time voting system to its members to conclude which systems will create the next block on the NEO’s blockchain network.
This also means that anyone on the network can operate after voting.
Furthermore, you can lock or stake each NEO coin or NEO token. Usually, it is done to represent a vote. All owners who lock or stake NEO then vote for the consensus nodes to create new blocks.
What Drives The Price Of NEO COIN?
Like all other cryptocurrencies, NEO also follows the standard market rules.
When you see a reduction in Bitcoin’s price, then mostly, the prices of NEO and other altcoins are also reduced. This happens because traders panic and try to sell off their assets to prevent potential loss.
Like others, NEO is highly volatile as well. So, you will see sudden rises and falls.
Moreover, NEO coin prices are also driven partially by media attention. When NEO first emerged in the Western Media’s headlines, there was only one exchange on the market, Bittrex.
This media exposure led to a rush, and the prices were higher than ever before. Any price increase driven by media or headlines is only higher for a particular period as dealers are engaged in profit-taking.
Interested in trading NEO?
Here are some brokers and exchanges on the market that you can use to purchase or sell NEO coins and other cryptocurrencies:
Skilling: It is a well-known exchanger that deals in various cryptocurrencies such as NEO, Bitcoin, Ethereum, and CFDs. There are different trading platforms and many types of accounts for easy trading.
Binance: This online platform to buy, sell, and trade various currencies, including NEO. You can also use Binance’s mobile app to complete transactions as per your convenience.
Fortrade: It lets you buy or sell cryptocurrencies as CFDs against dollars. Plus, you can access real-time updates, market information, and practice strategies in their demo account.
Does Utopia Digital Asset Management's deFi Infrastructure Fund invest in NEO?
We consider NEO to be an easy to use Layer 1 solution for building DeFi dApps. Further to this, there is also an implied national pride in NEO's founders being Chinese and so we can see it becoming the blockchain of choice across China for developing blockchain solutions involving their Central Bank Digital Currency.
As such, we can see a lot of demand for NEO - something underlined by its performance this year.
You can invest in our fund via ICONOMI from as little as €10 and gain exposure to a curated basket of cryptocurrencies that looks to out perform Bitcoin.