Neo Shows Not All Crypto Will Survive

Kate Leaman
Kate Leaman

10 December 2019

3 min read

Neo Cryptocurrency trading

  • NEO an amalgamation of several crypto technologies
  • This crypto is highly levered to China
  • It will struggle as long as Bitcoin does

While NEO was originally thought to be an amalgamation of different crypto technologies that could become a leader, the reality is that the crypto simply has not taken off. The blockchain platform and cryptocurrency were created with the idea of being scalable as far as the network is concerned and they offered the possibility of having decentralized applications. It is similar to Ethereum, but it also has the ability to support different programming languages such as C++ and JavaScript. This allows developers to use languages of their choice to develop smart contracts as they are compiled with neoVM, which is a customized version of Docker. This compiles the users code into the native environment.

NEO has fallen apart

NEO/USD chart

While it initially took off, especially in countries like China, NEO has now completely crumbled. Because of this, the market is very likely to see a continued malaise when it comes to NEO, as one of the major issues facing NEO and many other crypto currencies is that there has been a lack of adoption. Quite frankly, we are 10 years away from the “block chain revolution”, and simply haven’t found much in the way of a use.

NEO has now completely crumbled

As NEO could be thought of as a cryptocurrency, it  should also be thought of as a platform. Unfortunately, blockchain simply hasn’t been found to be the Savior that it once was. In that sense, it’s much like the money that was made ahead of the hysteria of the year 2000. That was when tons of money was thrown into correcting potential software issues.

Ultimately, Bitcoin is the granddaddy of them all. Bitcoin couldn’t get much of a foothold over the last couple of months, and in that scenario it’s unlikely that other cryptocurrencies will pick up. NEO being so highly levered to China is also a major issue, as the Chinese government has made several attempts to crack down on cryptocurrency.

As you can see on the chart, NEO was over $160 at one point, and is now currently trading below $9. This is a complete collapse in NEO and it isn’t showing any real proclivity to go higher.

NEO would probably need to clear the $20 handle to show any real sustainability of the longer-term.

Price tells you everything you need to know

Despite what some crypto evangelists will say, price is truth. The fact that the price of NEO is so low tells you how unimportant it seems to be at this point. While some crypto could thrive in the future, it looks as if NEO won’t be one of them. Going forward, it’s likely that any short-term bounce should offer a nice shorting opportunity for those who are willing to step in. Ultimately, this is a market that could go as low as zero someday. Expect a lot of headwinds just above.

Kate Leaman
Written By
Kate Leaman

With over 10 years experience as a trade news writer, Kate is our FX and commodities expert. Kate is also a talented voice over artist and BBC TV presenter, mother of two and yoga fan. Read Kate's bio

Other related news

Do you have any experience with this broker? You can share it here:

Your email address will not be published. Required fields are marked *