After the recent crypto market crash a number of people want to know, “Is NEO still a good investment?” NEO is a unique smart contract platform with tremendous potential.
In this article I will give you the relevant facts about NEO so that you can make an informed decision whether NEO is still a good investment.
What is NEO?
NEO is a blockchain focused on fostering smart contracts and decentralized applications (Dapps). It offers similar functions to Ethereum. The protocol uses two native tokens: NEO and GAS. The first one is used for governance, while the latter is used to pay transaction fees.
Why does NEO have value?
The smart contract features on NEO are a good alternative to Ethereum, in times when the Ethereum gas fees make it costly. The NEO blockchain is quicker and cheaper, enhancing the performance of the DApps built on it.
Moreover, the NEO Council operates a program to aid and incentivize the creation of apps on their blockchain, called Eco Support.
● Less resource intensive than Ethereum for now.
● Transaction fees are lower than Ethereum’s.
● Developers can build using “easy” languages like Python or C#.
● Offers staking benefits.
What are the Cons of NEO?
● Potentially susceptible to influence by the Chinese government.
● Not superior to its competitors (Ethereum, Algorand, Solana, etc.).
What are NEO’s tokenomics?
NEO total supply is 100 million tokens, created on the launch date. 50% were distributed in the token sales, and the other 50% went to the development team, through the NEO Council.
Every 20 seconds, 8 new GAS tokens are generated and distributed to NEO holders. The emission will continue until it reaches the maximum supply of 100 million.
Who founded NEO?
NEO was founded by Da Hongfei and Erik Zhang. The latter was also the creator of the Delegated Byzantine Fault Tolerance algorithm, used in the NEO blockchain.
Who are NEO’s investors?
NEO conducted an Initial Coin Offering (ICO) and a Seed Round. The two main investors are Karnikia Yashwant and Chain Capital.
I give NEO a C+ rating. This is because NEO is yet another ‘Ethereum alternative’. It has a fast, inexpensive, and secure blockchain where developers can build apps and users can enter the world of decentralized finance.
However, NEO, like many other layer 1 blockchains just doesn’t have the network effect of Ethereum. Or for that matter, it really doesn’t have the network effect of chains like Solana, Avalanche, or Algorand. So, for now I have to give it a C+.
Where can I buy NEO?
Binance, Huobi Global, KuCoin, Bittrex, Bitfinex, Poloniex.
What ecosystem does NEO run on?