Earlier this week NEO founder and CEO Da Hongfei shed some light on the crypto’s future. Da was interviewed by Dutch finance publisher Het Financieele Dagblad. And as the dust settles in China following the crypto crackdown, Da remains ever the optimist.
In fact, Da tells a far different story than we’ve been hearing from most of the media. He comments,
‘…none of the regulators have contacted me. But before they started cleaning up the market, I was asked to provide information and suggestions.’
This last point is an intriguing. While it is obvious that China’s government doesn’t approve of ICOs, asking for Da’s assistance seems like a gesture for a truce. It’s the closest thing we have to a positive crypto story out of China lately.
The interviewer even dared to probe further, asking Da if a partnership with the Chinese government is possible. Da states that the government does actively encourage local business. He believes Baidu and Alibaba are both great examples of this support.
The only roadblock is whether China will embrace blockchain. If they do, it could give NEO the potential to become the ‘Alibaba’ of blockchain. A big claim, which could be worth billions. Da remained reserved, though, simply saying,
‘I do not expect the government to call me in the short term to say: Let’s use NEO as the blockchain technology infrastructure in China. But in the medium-to long-term? Why not? I think it’s possible.’
NEO’s Price Soars
That optimism, though cautious, sent NEO’s price soaring. It gained more than 26% in the 24 hours after the interview was published. It outperformed all the top cryptos, and saw NEO sneak back into 10th spot overall by market cap.
Again it just goes to show how volatile the crypto markets are.
Don’t get me wrong, it’s good news, but it’s also troubling. A price swing that large from just hearsay and optimism is problematic.
For now, though, the good news is that it looks as though NEO has a future. It means they can continue to develop their platform and compete with other cryptos. And if Da is right and one day the government decides to support them, then even better.
One thing is for sure: China hasn’t given up on cryptocurrencies yet.
Better yet, NEO’s reach continues to extend beyond the Middle Kingdom. NEO already has a presence in Hong Kong, and it could soon extend to Japan. There are rumblings that NEO could be listed on two big exchanges in Japan.
Again, only rumours, but apparently that’s good enough to send NEO traders into a frenzy.
In any case, if NEO has piqued your interest, we have found one crypto that is potentially bigger and better. It even has the potential to overtake bitcoin. Check it out in our full report right here.
Junior Analyst, Money Morning