Is China returning to Crypto? That's good news for $NEO and $GAS.

Apr 28, 2024 1:13:57 AM

China is Back to Crypto

There are many reasons to be bullish about Neo and crypto in general. The news is coming from Hong Kong. China’s most significant investment fund is asking permission to list a new Bitcoin ETF through HK.

The potential re-entry of Chinese institutional investors into cryptocurrency, starting with Bitcoin ETFs in Hong Kong, could signal Chinese authorities’ softening stance towards cryptocurrencies. This development could have far-reaching implications.

We are witnessing legal and institutional investment in crypto from Chinese institutions. This is excellent news for Bitcoin and means even more to Neo.

What is Neo?

Neo is the only public blockchain from China. It only exists because it’s a pioneer and appeared before the Chinese government imposed cryptocurrency restrictions.

Launched in 2016, Neo, previously named Antshares, is a blockchain network founded in China by Da Hongfei and Erik Zhang. During this period, the network developed an extensive and unique technology stack, offering services missing in other blockchains.

You can learn more about Neo’s unique characteristics in this article.

Why is this big news for Neo?

The restrictions challenged the Neo team significantly, drastically limiting their capabilities to build a local community. Instead, the network had to compete in international markets, often dominated by competing networks. Neo was once one of the top 10 coins in the world, but restrictions have severely affected the token’s price.

Now, things have changed. Harvest Fund and Southern Fund, two of China’s most significant investment funds, have applied to offer spot Bitcoin ETFs through their subsidiaries in Hong Kong.

Neo has been investing to expand its regional influence, first with an office and later with other partnerships. Increasing their presence in Hong Kong wasn’t by accident. Due to crypto-friendly legislation and other legal frameworks, the city has become a crypto reference.

This is highly speculative, but historically, China has often developed local products for its internal market. If the ETF offerings increase, Neo will likely be an advantage over other tokens.

New Neo X Network

Other news about Neo shouldn’t be ignored. One of them is that they are about to release a new network, Neo X. This upgrade promises to deliver solutions for multi-billion dollar problems in the existing decentralized finance.

Neo X will not replace the existing network but will work as a side chain. It will use a mix of technologies, allowing many existing decentralized applications to deploy their applications on Neo. One of the problems Neo and other networks faced was the incompatibility with Ethereum technologies. Most specifically, there is a lack of compatibility between the virtual machines they use. The good news is that Neo will become compatible with the Ethereum Virtual Machine through the Neo X .

Open Doors to Neo

Being compatible with EVM means a lot. By making a new network compatible with existing dApps and developers, the chain has started to draw attention from teams that wish to increase the audience of their dApps.

For many applications, the new advancements in Neo X may create competitive advantages that aren’t easily accessible on other networks. One example is trading privacy, protecting users from unfair trading practices. This problem, the MEV bot problem, has been responsible for over a billion dollars in losses per year. Solving this problem will make Neo very appealing to dApp developers.

Neo Presence in Paris and Hong Kong

This month has been busy for the Neo team, which has worked to be present in two events simultaneously: the Hong Kong Web3 Festival and the Paris Blockchain Week.

Investors gained increased visibility during these events. Da Hongfei delivered a great speech during both events, drawing attention to the platform. This has likely contributed to the price surge over the last few days.

NFI Technology on the Neo Blockchain

Participants visiting the Neo Booth in Paris will be able to interact with a new NFI product developed by Item Systems, a joint venture between AxLabs and COZ. To learn more, check the AMA on Reddit.

This new technology bridges the digital and physical worlds. With the Item Systems, real-world objects can be linked to unique tokens on the blockchain, enabling a wide array of applications from product authentication to creating immersive, personalized user experiences.

What is Linkd Academy?

Linkd Academy is a new community in the Neo ecosystem. Our goal is to empower and onboard new users and developers.

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