NEO: China’s ‘Ethereum’ Soars To $1Bln Cap
From a meagre $7.2 mln to over $900 mln this year, the meteoric rise of China’s first ever open source blockchain and smart asset platform which combines smart blockchain contracts and digital assets has seen it crawl into the top ten digital currencies with the largest market capitalization.
According to figures from Coin Market Cap, the native asset of NEO, formerly known as AntShares, has risen by more than 12000% in the last seven months from a price of as low as $0.15 in January to its current $18.25 price tag. Nevertheless, while quite an impressive run, the price rise is not likely to stop with the look of things. The huge and growing crypto market in China presents the public blockchain project with enough room to continue gaining momentum and making gains for investors. Key factors that will contribute to its market expansion and increased value include:
Edge over Ethereum
When compared to Ethereum which has gained popularity for being the best blockchain platform for institutional use, NEO comes mostly with similar capabilities as well as cited edge. Top among them is its smart contract platform, NEO 2.0, which supports traditional programming language unlike Ethereum which has its own programming language, Solidity. This edge will be crucial to make it a better option over Ethereum for running Initial Coin Offerings (ICOs) especially for upcoming Chinese projects. This is because more developers will find it easier to relate with and provide, especially new developers with less entry barrier without the need to learn a new language code. It also seeks to reward developers to attract the best for good applications on its smart economy platform.
ICO boom in China
This is despite the fact that China is expectedly going to see a surge in ICOs in coming years. The country’s growing interest in blockchain-based initiatives is undisputable. According to China Money Network, there are 43 platforms providing ICO services in China which have raised about RMB2.6 billion (US$420 million) so far from 105,000 people with the majority coming from three Chinese cities: Guangdong, Shanghai and Beijing. Data from the China Internet Security Technology Commission also show that Bitcoin and Ethereum account for 90% of all fundraising in China. With the ICO trend still about to take off in China, NEO’s share of the market at this point could still be considered minimal.
A huge consideration would also be given to the technology for its programmed ability to cater for local needs. With NEO in the picture as a blockchain that supports a variety of digital assets and allows users to register, distribute, freely trade and circulate assets, it would be easier for China-based projects to relate with it in its quest to create an entire smart economy that incorporates digital assets, smart contracts and a digital identity for real world applications and integration. It has its locally-managed development team in Shanghai and a community driven international team by the name City of Zion. NEO’s local factor will be a huge plus.