The NEO developers of the Chinese-based platform could see a considerable increase in volatility since more than $11 million in NEO tokens will be unleashed on the market, which represents 2.3 percent of the total circulating supply as we are reading in the latest NEO news.
As with many other platforms, the NEO developers have in their hands a substantial amount of the native token, which they do periodically to sell the coins and raise more funds. The large amounts that enter the market should come to no surprise at all. Whale Alert announced the new unlocking of the NEO tokens earlier today. All of the NEO tokens in question have not been sold yet, and the foundation didn’t say when this could happen. However, it is safe to say that a sale could happen soon, which will cause the token price to drop dramatically.
The crypt prices are bouncing back from the previous correction during the past week, and there’s no doubt that the NEO developers would like to see higher prices before they choose to liquidate. Luckily for the investors, the NEO Foundation has a reputation for transparency when It comes the financial issues. The Chinese-based platform reached the top 10 spots in the market two years ago, and this was considered a high level and a rival to Ethereum since NEO’s selling point was the ability to create decentralized applications in known coding languages.
The hype around NEO has dropped ever since, as with many other altcoins. The market value decreased in early 2018, and the market rank also continues to go down. The biggest challenge for the coin is to beat the strong rivals such as Cardano, VeChain, and others that promise to carve out places in the Dapp space. NEO could come back since it retained most of the core team of developers. This year, NEO plans a major upgrade, dubbed NEO 3.0, which will include the launching of a new mainnet.
Most analysts believe that NEO’s future will depend on the acceptance from the Chinse government, which still has to take place and to find a position on blockchain adoption. The rumors have long gone around the platform’s ties to influential leaders as well as some significant Chinese businessmen. All of the NEO advocates can now be assured that the platform has a strong vision to go forward, and there can be no question about the market value of the coin.
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