“Making the economy smart” was precisely the goal of the Chinese developers. Despite a similar approach to the essence of NEO and Ethereum platforms, their goal is different. Ethereum is designed to create completely diverse applications (most of which are “junk”), the goal of NEO is to integrate the real economy into a virtual environment. Developers even compare NEO and Ethereum with Amazon and Alibaba – the sites seem to be similar, but focused on different markets and have different organizational approaches, due to which the competition between them is minimal. In other words, NEO is able to break through at least in the TOP-5 without displacing Ethereum.

The developers’ ambitions are high – in 2 years they can beat all competitors in terms of capitalization, and the platform has many of them:

  • Ethereum A comparative description of both of these platforms has already been made in general terms.
  • Cardano A fairly new project, the success of which is still difficult to assess – the platform is not fully launched. NEO has an advantage in this case – all pitfalls have been honed for three years.
  • EOS. An ambiguous startup that even indulged in criticism. It is an application development platform where the emphasis is on data security. And the fact that EOS for several months with TOP-15 entered the TOP-5, and NEO, on the contrary, flew into the TOP-15, speaks for itself.
  • Qtum. A fairly serious competitor from the TOP-30, on which Chinese developers are also working. Instead of smart contracts, master contracts are used here, which are analogs of contracts between contractors in the real world. The industry division of master contracts is provided. The platform is designed for business goals and has already taken “the first startups” under its wing.

And here again, it is worth recalling two distinctive features that distinguish NEO from its competitors:

  • Lack of anonymity. OnChain (the controlling company of developers) has access to transaction history and can track any movement of information.
  • Pseudo-centralization. 35 million tokens are officially left with the developers and it is not known how many more tokens can belong to them through subsidiaries.

Both of these points are ambiguous. On the one hand, the developers made it clear that they are aimed at absolute transparency and cooperation with regulators. On the other hand, they reserve the right to violate the rights of network users and the likelihood of using insider information.

On this annual chart of quotes, the instability of the cryptocurrency price is clearly visible:

  • Peak quotes in January are explained by the overall growth of the entire cryptocurrency market.
  • There is no information on the reasons for the sudden collapse on February 6.
  • The next serious collapse of more than 27% at the beginning of March is explained by the fact that on March 3 a serious failure occurred in the network, which should not have happened in principle. It’s not worth it to go into details. But it’s worth adding that on the Internet in mid-August there was information about a new vulnerability that would allow a DoS attack.
  • The last significant growth in late April – early May is not amenable to explanation. Then NEO rose by 15% per day, GAS – by 16%. And the only probable reason is called the purchase of altcoins by a large investor.

Conclusion

The NEO cryptocurrency can be called the “dark horse” of the entire market. Not so long ago, she was in the TOP-6, today she is already in the TOP-15. But given her ups and downs, it is likely that she will regain her lost ground again. And such a rollercoaster is a good opportunity for investors to earn if they catch a wave. The main factors influencing the price remain the general market situation, the ability of developers to quickly eliminate vulnerabilities and technically improve the platform. Therefore, I propose to join LiteForex cryptocurrency traders and test a new tool. Share ideas and strategies in the comments!

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