The recent uprising of NEO and my concerns.
First of all, I would like to say that I will not be giving market advice on whether to buy, hold or sell. I’m purely expressing my finding around NEO and what I have discovered while investigating this new uprising coin.
NEO saw a big uprising in 10 days, starting from around 7$ to a stunning 40 $ at its ATH, that’s a rise of +- 570 % in just 10 days. This happened for various reasons. AntShares rebranded to NEO, the twitter account published a tweet that caused A LOT of FOMO but it was deleted afterwards. The first ICO on the NEO platform was announced. People started calling NEO the Ethereum of China !!
Wow… Just wow! This is 2 good 2 be true, right? Once people start expressing these statements it’s time to take a step back and look where we are right now and look at the progress.
Value compared to history of Ethereum.
Let’s start by taking a look at the current price and compare it to Ethereum. Where could we be right now in the history of Ethereum. Compare the 40 $ with a supply of 50M with the supply of Ethereum of +- 93M. If you use some basic math we could see we are at the 21 $ price in ‘Ethereum Terms’. So, we could say we are early, right? Who wouldn’t want to buy some 21 $ Ethers? Right guys?
Around the end of February Ethereum saw a rise to 20 $ so you could say we are at this point in time. How was the Ethereum platform doing then? What happened around the end of February? Well actually the first members of EEA were announced.
http://menafn.com/1095273584/Intel-Microsoft-JP-Morgan-with-others-form-new-blockchain-alliance
http://sdtimes.com/microsoft-intel-launch-enterprise-ethereum-alliance/
Are we seeing these big names coming from NEO right now? NO, we are not.
Source code
Let’s take a look at the source code on GitHub.
There doesn’t seem to be much activity. Look at the graphs of the projects, you can even open the project (Insights, graphs) or look at the commits.
There is also a community group creating side applications like wallets and explorers thou.
But the main protocol hasn’t seen much activity. It currently has around 8 contributors and some small commits but nothing big.
The official wallet looks straight out of the nineties and people have several issues with it.
If you compare the activity to other projects like Ethereum, Stratis, Lisk, Waves. Well you can clearly see the difference, right?
I’m not even talking about the future development that Ethereum or other platforms have up their sleeves.
Exchanges
Neo is currently being traded mainly on 1 exchange and that is Bittrex. You can see the volume at here.
When one says that NEO is the Chinese Ethereum one would expect that the main volume comes from the Chinese exchanges right? Wrong ....
Chinese exchange, at this time, counts for around 20% of the volume. The rest is mainly Bittrex. One could say that the Chinese are using Bittrex, that’s true. But still that is a lot of volume coming from one Exchange that is mainly used in the West. Could this be Whales at work? Maybe… Maybe not…
Summary
It has been said before but the Chinese market is a strange market that people in the West don’t really get. People, please continue with caution. We are having a lot of moon talk in this subreddit and a lot of people are letting themselves go with the FOMO and calling the moon.
Do your own investigating and try to understand what is happening and don’t blindly put money into an uprising coin.
I’m not saying NEO doesn’t have the potential to become big but it’s too soon to tell. We are just in the beginning and I think the current uprising in price is just to big but that’s my honest opinion. We are seeing a lot of FOMO so be careful out there.
Over and out.
Btw, this is my first post here on SteemIt! Please be gentle. This post is also available on Reddit
Welcome to Steemit, bud. I came here from your Reddit post and I feel the same way, though I think this is a good time to get in on the hype cycle if you're a trader. As an investor it's also likely to be a good thing to hold for a couple of years imho.