At press time, the coin that has often been called the “Chinese Ethereum” is up to about $22. This is about two dollars more than when we last covered NEO, which suggests that the currency is experiencing bullish momentum along with bitcoin.
As the 15th-largest coin in the crypto space, one source claims that the currency was trading for over $23 during the weekend, which would mean it’s lost some of its value. Presently, it has a market value of nearly $1.5 billion, while its daily trading volume averages at $80 million. Unfortunately, like Ethereum before it, NEO appears to be the subject of a massive sell-off, and growing trading volumes during a bear run is never a good sign.
Last August was one of the coin’s worst months in the history of crypto. Overall, NEO lost as much as 40 percent of its total value. The fall was allegedly triggered by the Securities and Exchange Commission’s (SEC’s) rejection of numerous crypto-based ETFs, and it’s believed that NEO was amongst the “biggest losers.”
At the same time, however, NEO Global Development (NGD) published its monthly report on the NEO Blockchain Game Development Competition. It is estimated that over 200 developers across the globe submitted approximately 39 games.
Analysts claim that for NEO to experience any further momentum, it will need to break the $23 mark. Once this occurs, it’s possible NEO will swing up to $25. Overall, the currency has been trading for less than $25 since early August. Support is presently situated at just over $20.
One of the other big reasons behind NEO’s drop is the crackdown of its founding country on crypto-based applications and currencies. China has ultimately put a stop to initial coin offerings (ICOs) and digital exchanges alike, saying that such trading activities are untrustworthy, and are thereby banned. Furthermore, it has put a stop to all cryptocurrency promotional activities.
Where China remains open, however, is in the distribution and application of blockchain technology, which it isn’t outlawing firsthand. The country has invested nearly $4 billion in blockchain since 2016, making it one of the most generous nations in the world towards the technology.
According to China-based NEO blockchain development team member Miryam Amsili, it’s not unusual for most people in China to have at least one or two people in their lives – either friends or family – directly or indirectly involved with blockchain technology thanks to its growing popularity. Furthermore, several local Chinese governments – including that of Hangzhou, home to tech giant Alibaba – have made investments in blockchain ventures.