Why NEO Gets To $1,000 Dollars

Why NEO Gets To $1,000 Dollars
NEO (NEO) currently trades for $113 a piece and, at that price, commands a market capitalization of a little over $7.34 billion. Just as with the wider cryptocurrency market, this one was subject to a considerable weakening over the last six weeks or so, but, unlike many of its peers, NEO has staged something of a strong and sustained recovery subsequent to the decline.

Specifically, and as mentioned, NEO now goes for $113 apiece, which is down around 30% of highest but marks a 36% recovery from lows and to be trading less than one third off high is more than many of the bigger coins in the space can say.

We think there’s plenty more to come, however, and that the latest one is indicative of our bull thesis for the coin.

Here is what we are looking at.

For anybody unfamiliar with this one, NEO is very similar in concept to Ethereum (ETH). It’s designed as a platform on which third parties can build decentralized applications and the associated cryptocurrency, NEO, is tied to the platform in that the accused as a sort of gas payment asset in order to support the decentralized applications built on top of it.

So why do we think this one has a chance when Ethereum already dominates the decentralized applications space?

Well, this week, the company’s founder and CEO, Da Hongfei, took the stage at NEO’s DevCon and outlined a number of initiatives designed to fuel growth going forward both for the platform and the company behind it.

One element of this event, however, struck out for us above all others and it’s on this element that we are resting our long-term bullish thesis for NEO.

What are we talking about?

Well, Ethereum has become incredibly popular because of the wave of ICOs harnessing the technology to raise capital and to build blockchain based companies. Some projects have built on NEO’s blockchain (there’s a list here for anyone interested) but far fewer than the amount that has been built on Ethereum.

Here’s what Hongfei had to say about this:

“The first killer app of blockchain is Decentralized Gold, [so]Bitcoin is the first killer app of blockchain… the second of these, are ICOs and we have to admit, that ICOs have brought many people to this industry–they helped Ethereum to become the second largest cryptocurrency.”

The third killer application group, however, is decentralized exchanges, and, as pointed out by Hongfei, the NEO blockchain is perfect for hosting this sort of technology.

Decentralized exchanges will need the following features:

Quick transaction times

Finality

Interoperability

Digital identity

Stable coin for universal pairs

With that list of features in mind, now look at the NEO tech breakdown:

High TPS 1,000/sec

Finality: NEO only needs 1 confirmation for transaction approval and distributed consensus

Interoperability through NeoX

Digital ID through NeoID/Ontology

Stable Coin: Alchemist

As illustrated, NEO fits the exchange remit perfectly and we see this as being a major boon for the company and its growth throughout 2018.

in other words, this is an area of the market that has yet to mature because current solutions (we are looking at you, Ethereum) aren’t up to the task. NEO, on the other hand, very much is and can step up where Ethereum fails.Our target?$1,000 by the end of 2018.

NEO coin doing great even after the Crash

NEO Trading 8.5% Higher Over Last Week