In this newsletter, we are profiling Neo [NEO]. In previous newsletters, we have profiled Bitcoin, Cardano, Stablecoins, Uniswap and many others. Access all our newsletters in our archives at madcapx.substack.com.
The Short of It
Ranked at number 47 on CoinMarketCap, it was China's first public blockchain project. Though NEO is not the hot topic it used to be, it is still being developed and has lofty goals to become the new Internet's foundation.
NEO started life as Antshares in 2014 by Da HongFei and Erik Zhang and was rebranded in 2017. Neo is Greek for “new.” It is one of the original smart contract blockchains created to compete against Ethereum and was initially widely known as the “Ethereum of China.” One of their main goals is to allow easy creation, trade, and transfer of digitized items. The ecosystem has two tokens, NEO and GAS, and is overseen by the NEO Foundation. There is also a parent company, run by the founders, called Onchain.
Featuring a unique Proof-of-Stake consensus mechanism using Delegated Byzantine Fault Tolerance (dBFT), NEO was launched with a 100 million token supply in its genesis block. Although it is possible for the NEO Foundation to mint more, they have promised to keep it at that max supply. The system boasts a decent 10,000 transactions per second capacity. The main token, NEO, is used primarily for governance and holding to get GAS payouts on a regular basis. The GAS token is used to power the network and fees, much like the ETH gas in Ethereum.
A big aspect of the NEO ecosystem is their “smart economy.” It consists of using a digital identity and smart contracts to digitize assets. They have two types of digital assets, global assets and digitized assets. A digital certificate is utilized for the legal protection of digitized assets.
The NEO Foundation is split into two entities, NEO Global Development and NEO Global Capital. The first is to promote the continued development and upkeep of the platform, while the latter is for focusing on commercial adoption and progress (their for-profit segment).
NEO features a comprehensive set of developer tools and services, like NeoID (decentralized identity authentication), NeoFS (decentralized storage module), and Neo decentralized domain name service. With multi-language support via C#, Python, Go, JS, and Java, the developer network currently spans 7 countries with communities in at least 20 cities. ONTology, another project of Onchain, was built using the NEO technology. The N3 mainnet launched this summer and saw the addition of a built-in oracle, poly-chain integration, and single block finality. With a new focus on DeFi and NFTs and other future-oriented applications, N3 promises security and efficiency at a low cost for your next-gen blockchain needs.
Be sure to learn more about NEO if you are optimistic about this Asian blockchain ecosystem with a large, competent, and well-established developer base. It will be interesting to see how it plays out against Ethereum and the many other newer smart contract blockchains.
NEO/BTC pairing on the weekly chart has it heading on a bearish trend. Though when we take out the peaks and dips, NEO seems to be in this sideways trend. In the 2021 crypto bull-run, it gained 513% against BTC before returning back into the sideways pattern. The range inside that pattern is 85% for some good trading opportunities.
In early 2018 when most of crypto was in a bubble, NEO ran up to $206 USD. Over the next 2 years, it lost all of the value it had gained and went to its lowest in March 2020 of only $3.95, which was during the beginning of the covid lockdowns where almost everything crashed. From the beginning of 2021, it started a bullish upward swing with many other crypto assets, gaining 1144% to $146. Since then, we have dumped back down to about $47.
This Twitter post pops out since it has the Matrix background on it. This Christmas, Neo, the character, is returning to the screen in the latest Matrix movie, putting the same time frame for the targets below for the $NEO crypto asset. The current price is at about $47, and the chart has targets of $113, $181, $286, and $461. Replies to the Twitter post don’t seem very optimistic to even go to $100.
The road back to ATH for NEO is very clear from here. Prior to the flash crash experienced yesterday (September 7), NEO was in a bullish continuation pattern since the fast and slow ma crossover on the 1st August which saw NEO grow 86% in just over a month from the 1st August to 4th September from $35 to $66. For the next leg up from the current price, NEO will need a clear break above the 38.20% fibs where NEO had been previously trying to break above some heavy resistance in the range $65-$72. Our next key price target after a retest of ATH is at the 127.20% Fibs @ $169.98, 255% gain from here. — Posted to tradingview on September 8 at https://www.tradingview.com/chart/NEOUSDT/TftQ3s3d-NEO-Potential-192-Gain-Back-To-ATH/
The Other Trend Lines
#DOT/USDT TA Update from CryptoPatel:
$DOT currently trading at $34
Already 280% up from bottom.
And I told to buy at every dip and also mentioned on Twitter .
Right now $24-$28 is very strong support level .
Recently also Strong bounce back from this level.
$DOT has potential for long term and my target will be $100 in mid term.
I am accumulated between $24-$28
If again market dump then I will add more $DOT
New Entry:- $28-$34
Stop Loss:- below $24 I will exit and wait for next entry.
Resistance:- $39/$48/ ATH
Ran Neuner chats with Layah Hailpern about Etheruem, Solana, Cardano and Polkadot and several others. And why he has sold part of his ETH for SOL. The reason there is room for more than just one blockchain, the importance of creating bridges between multiple chains. When looking for projects to invest in, follow the smart money.
This portfolio section gives you an idea of what sort of return you can get when investing in crypto assets.
BTC/USD FUND is up 312% since October 1st, 2020. Since this is a long-term holding, it is best kept in cold wallet storage or a safe custody solution. We continue to see a long-term hold position as our best stable alternative. This past week bitcoin has been ranging between $42,843 and $52,920 USD in value.
FUND 3 started on November 16, 2020, with $1000 USD in value and was invested into BTC, LTC, ETH, and ADA. The total amount of BTC value from the four coins has had a gain of 162% since the start. The USD fund value is up 598% since the start. We will hold these positions to see how well it does against our BTC-only portfolio. LTC is down -6% against BTC. ETH is up 163% against BTC since the start. ADA has a gain of 781% against BTC and 2221% to USD.
BLWX Fund started on February 22, 2021. They all are assets we have profiled in the last few months, and we are interested in how they will perform in 2021 against BTC. BAT has a gain of 65% against BTC since the start; LINK is up 5%, WAVES is up 228%, XMR is up 36%. Overall, against BTC, the fund is up 84% and 48% against USD.
Overall, Bitcoin should be your first choice as an investment in crypto, though many digital assets can give you amazing gains if you manage your risk. As a long-term investor, we see it as our largest portfolio investment. If you are a day trader, there are many great assets to put on your watch list. Look through our previous newsletters to find some.
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Madbyte does have its own token called MADX on the Ethereum network and Madbyte on the Waves network. The two tokens are interchangeable on Madcapx.com.
Disclaimer: Nothing in this newsletter is intended to serve as financial advice. Therefore, do your own research and due diligence before applying any of the techniques highlighted in this post. Any risks or trades based on this newsletter are committed at your own risk.