NEO. The Chinese Ethereum. It used to be one of the biggest hypes in the altcoin space back in 2017. They even went to the top 7 rankings at one point before they fell slowly from the crypto market cap rankings. It’s been a while since they made it to crypto headlines, but now their future suddenly looks exciting again. Their token price in September has appreciated heavily. So, what actually happened? And can they eventually overthrow Ethereum from the DApp throne?
Upcoming NEO 3.0 And Flamingo Finance
So, NEO successfully stole crypto headlines again due to several different things happening this year. First of all, Flamingo Finance. You probably have heard of it. It’s NEO’s take on DeFi space, similar to all these other yield-farming tokens on Ethereum as well as on other blockchains (i.e., SUN on Tron or BEL on Binance launchpool).
NEO actually did it cleverly with the Flamingo launch. They are doing it shortly after their neo-cli v2.12.0 upgrade, which adjusts their maximum transactions per block and gas bidding mechanism. They understand there would be a large amount of inflow transactions coming from all these DeFi whale traders.
Not only that, but Flamingo also builds its own Wrapper mechanism to wrap tokens from other blockchains, such as BTC, ETH, and some other ERC-20 tokens. The wrapper system is nothing new, Ethereum has its own wBTC (wrapped BTC), renBTC, and others. However, to have one big wrapper system built directly by the same team that built your blockchain is something else. People are hyped about Flamingo’s Wrapper system.
The great thing is that the NEO main team is still focused on delivering the NEO 3.0 upgrade, which will change a lot of things about NEO. It’s like Ethereum 2.0 upgrade but for NEO. Among the changes are the improvement to their dbFT consensus algorithm that would introduce a recovery mechanism for a node failure scenario. They would also decouple their Neo Virtual Machine from the blockchain, so speed and smart contract execution would be greatly improved.
Imagine the combination of hyped yield-farming protocol on NEO with these NEO 3.0 improvements, that would be able to pump their popularity back to the top 10 rankings.
NEO Is Not Really Known For Consistency
The problem with NEO is that their main team is not really known for consistency. Back in early 2019 after the crypto winter, their main leader (Da Hongfei) started to talk about how NEO should get into the gaming ecosystem. But that plan never really materialized, so they had to go back to the drawing board.
Even the discussions and debates about NEO 3.0 took a lot of time because they didn’t really have a strong opinion about how certain things should go. Eventually, they got things right, but it took them a lot of time to become relevant again.
There’s also some negative prejudices associated with NEO just because of their close relationship with the Chinese government. Especially now after the pandemic where many Chinese companies are often accused of conspiring with the Chinese government, it doesn’t help their image.
Where NEO Go From Here
As mentioned above, NEO has exciting projects moving forward. With the launch of Flamingo Finance and perhaps other future DeFi-related products, NEO is able to ride the trend of crypto in 2020. Not just that, they will also implement NEO 3.0 soon to their blockchain. The future is exciting, and perhaps they will eventually fulfill their prophecy to become one of the top blockchain platforms again.
However, nobody knows whether they can actually do it or not. Whether they can surpass Ethereum or Polkadot or Binance Smart Chain. We shall see. 2020 has been exciting for smart contract platforms. That’s for sure.