Blockchain Investor Analysis

NEO

NEO
Current Price $15.21 (+5.49%)
NEO, which was original launched as AntShares in 2014, has been dubbed China's first blockchain platform. The NEO network incorporates digital identities, digital assets and smart contracts to create what it refers to as a "smart economy."

Our Rating:

Market

Problem that it solves

NEO aims to build a blockchain-powered 'smart economy' that combines digital identities with digital asset ownership.

Customers

NEO is a potentially powerful option for both Chinese businesses that want to develop blockchain products and services.

Value creation

NEO is required to develop applications on the NEO blockchain. Additionally, NEO holders can help to secure the network and receive GAS tokens as a reward.

Market structure

The market is still emerging, but NEO could be adopted on a large scale by Chinese businesses.

Market size

The market potential is huge, particularly if NEO gets the blessing of the Chinese government.

Regulatory risks

There's a small chance China could crackdown on NEO. However, due to its regulatory-friendly approach, the project has been able to avoid run-ins with the authorities.

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Competitive Advantage

Technology/blockchain platform

NEO was developed on its own blockchain.

Lead time advantage

NEO had plenty of lead time when it came to developing a regulatory-friendly blockchain the Chinese and Asian markets.

Contacts and networks

The team launched under the power of their own ideas and a concept that is compelling to people seeking to add elements of oversight and centralization to blockchain.

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Management Team

Entrepreneurial Team

NEO's founder, Da Hong Fei, taught himself how to code before he started NEO, so he's a true newbie. His success with NEO thus far is his most significant laurel.

Industry/technical experience

NEO has been up and running since 2014, so the team has certainly paid their dues.

Integrity

While Da Hong Fei has largely avoided negative headlines, he tried to distance himself from the development of Ontology, another project he has helped found, by saying he only helps formulate strategy. However, his involvement was apparent.

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Token Mechanics

Token required

NEO requires a token because tokenholders can vote on bookkeepers, which are essential to NEO's system.

Value added

The NEO token adds value both as a traded asset and one that gives you partial ownership of the NEO blockchain. Users are compensated for their ownership in the form of GAS, which is issued in a way similar to a dividend. Users also can vote for bookkeeper nodes. Outside of the Neo platform, the token has effectively zero use.

Decentralized

NEO is centralized through the NEO Council, which helps its system comply with government oversight.

Token supply

The supply if NEO is capped at 100 million tokens.

Public exchange

NEO is available on several major exchanges.

MVP

The NEO blockchain has been up and running since 2016.

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User Adoption

Technical difficulty

NEO's technology and main selling points are not easy to explain to a non-technical person.

Halo Effect

NEO is associated with China, which both helps and hurts its reputation.

Buzz

NEO cannot keep up with the likes of Ethereum and EOS in terms of buzz. However, it does have a strong community and presence in China.

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Overall Score

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Blockchain Investor Analysis

NEO has been able to establish itself as "the Chinese Ethereum" and has benefited from its access and close ties to a country that wants to implement blockchain technology into its economy.

NEO's proposed "smart economy" is an attractive concept that could continue to raise eyebrows and turn heads. However, NEO is asking the world to take a leap of faith and believe in a relatively centralized digital asset that welcomes regulation.

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