What Caused NEO's Temporary Price Slump and What to Expect
NEO altcoin holders and users are disappointed due to the decreasing value of this cryptocurrency.
Such uncertainty caused panic for most short term traders and raised questions as to how NEO could sustain its growth in the long term considering that there will be not much ICO actions in the long run.
No longer the Ethereum of China?
The price of NEO has previously surged to nearly $50 per coin. Following similar pattern with many bullish digital currencies, effectively after great increase came the major drop.
Source: Coin Gecko
After maintaining the price of $34 for a time, people had high hopes that it would rise again. However, it has decreased to less than $30.
And as of Sept. 3, NEO was trading $20.16 and is slowly recovering as of press time.
Maintaining its above $1 bln market cap
The cryptocurrency still has a market capitalization of more than $1 bln.
However, according to the reports, NEO has already got approximately a 33.58 percent loss and its prospects in becoming the most anticipated Ethereum of China still has a long way to go.
The Chinese regulators are brewing something to prevent ICOs
The current uncertainty in the future of ICOs in China, it has driven the price for most platforms and cryptocurrencies usually invested in mainly by Chinese investors.
While no one can confirm the issue last week, its effects has been evident in cryptocurrencies mainly traded in high volumes by South Asian investors.
Official statement from NEO about the ICO ban
While other cryptocurrencies believed to be affected by the ICOs ban in China already provided their announcement, including OmiseGO, NEO’s CEO, Da Hongfei, turned to Twitter to reassure the investors:
Thanks for all the jailbreaking service offerings I received today. I'm all okay. ? Expect official announcement in the coming days. pic.twitter.com/3swq3n9See— Da Hongfei (@dahongfei) September 4, 2017
Part of the statement reads:
“Today, NEO Council has obtained sufficient resources to support its technological R&D and ecosystem development for the next few years. In light of the ever more explicit ICO regulation requirements released globally, we decided to extend the refund option. Those who participated in the seed-round financing, ICO1 and ICO2 may contact firstname.lastname@example.org prior to Oct. 17, 2017, to be fully refunded after sending back all NEO tokens obtained from ICO.
Since 2016 ICO, we have made it clear that NEO is a not-for-profit open-source project driven and funded by the community. Apart from our continuous efforts in product delivering and ecosystem developing, we also seek to contribute back to the community in other ways. Therefore, we will offer pro rata incentives to seed-round financing, ICO1 and ICO2 participants who decided not to execute their refund options. A detailed plan will be released later.”