Chinese Cryptocurrency NEO Smashes Our Price Target
After the recent cryptocurrency crash, triggered by rumors of a South Korean ban, many investors seem to have begun losing hope in cryptos. I hear them saying that the 2017 returns were the best we could get and that those returns may never be replicated again. That line of thinking is absolutely flawed. Take the example of NEO—the one cryptocurrency that, despite the crash, is up more than 60% this year, and is the top performer of 2018 in the top 10 ranking cryptocurrencies.
Exactly two months ago, I had predicted that NEO could deliver 300% in returns by 2018. At that time, NEO was trading at just under $30.00 and I set a price target of $120.00 for 2018. Boy, was I wrong!
Or should I say overly conservative? Because NEO completely smashed my price forecast and shot straight for the moon. By mid-January, the average price hit an all-time high of $161.98.
If you heeded our advice and bought in early, we assume you’re sitting on a jackpot right now. But if you missed the boat then, fate is once again knocking at your door.
It’s about time I channel my inner Nostradamus again for a revised NEO price prediction 2018. But mind you, I’ve got some solid reasons to back up my forecast.
Here’s Why Neo Has Great Upside Potential
For my readers new to crypto-investing, here’s a quick crash course on NEO.
NEO, like Ethereum, is a blockchain-based technology for creating decentralized applications (DApps). Because it was created by a Chinese developer, it’s often dubbed as the “Chinese Ethereum” or the “Ethereum of the East.”
To understand the technology in the most non-technical way possible, consider NEO (and Ethereum) to be the “Android”-equivalent of cryptocurrencies. Just like Android is a technology for creating applications on your phone, NEO is a technology for creating applications on blockchain.
In other words, NEO is not your average cryptocurrency. Unlike Bitcoin, Litecoin, and a whole bunch of other cryptos vying to replace our fiat currency-based financial system, NEO has set completely different goals to achieve.
Now, between NEO and Ethereum, the latter has had a first-mover advantage, so obviously, it has earned early recognition. But NEO is gradually getting there. Here’s how.
NEO was originally founded as Antshares and was rebranded as NEO in 2017. The new name was followed by a new marketing strategy. NEO began to promote the concept of “smart economy”—a concept built upon Ethereum’s idea of “smart contracts”—and this is how it eventually earned the moniker of “Chinese Ethereum.”
The concept of NEO’s smart economy rests on the idea that virtually all of human existence would be digitized in the future. From our assets to our identities, everything would be programmed and will exist in computer code.
NEO is vying to decentralize our digital identities via its blockchain technology and create an ecosystem where all business and financial transactions would take place through blockchain-powered smart contracts.
This ecosystem, where digital assets and digital identities would exist and interact through smart contracts, would create NEO’s vision of a smart economy.
I must also clarify that although it’s touted as an Ethereum dead ringer, NEO is actually different than Ethereum on a number of fronts. It’s both cheaper and faster than Ethereum and is more developer-friendly.
I’ve done a more in-depth analysis of their differences here.
Regardless, NEO’s affinity with the much popular Ethereum brand has helped it earn greater visibility in the crypto world. It is also why NEO’s price has lately been moving in tandem with ETH.
Chart courtesy of TradingView.com
Shortly after NEO rebranded itself, NEO price broke past the single-digit barrier, returning nearly 2,000% in under two months. In the past one year, the NEO price is up more than an eye-popping 102,000%!
The gains are unreal. But the most striking reason why I’ve always found NEO to be a potentially attractive investment is that it pays a dividend.
No, you didn’t misread that. Yes, it does pay a dividend.
NEO rewards owners of the coin with NEO GAS—sort of a reward for owning the coin. NEO GAS are also altcoins that trade on crypto exchanges. Much like stock dividends, you can reinvest NEO GAS and multiply your equity on top of your original NEO investment.
At the time of writing, NEO GAS was trading for an average price of $144.12 and is up more than 128% in the past two months since my last coverage two months ago.
One Reason Why NEO Could Skyrocket in 2018
Coming to my NEO price prediction 2018, I’m seeing the NEO price easily crossing $200.00 this year. There’s one good reason why I see that happening.
NEO will soon be holding its first developer conference (or DevCon, as it’s commonly called), through January 30 and 31, 2018. That’s next week!
In the crypto-world, DevCons are open-to-all conventions held for crypto enthusiasts to meet up and discuss the future of their coin.
To give you an idea, Ethereum’s most recent DevCon took place in Cancun, Mexico three months ago. More than 2,000 people attended it, including not only tech junkies but also fans, ETH holders, and potential investors.
It was a chance for the Ethereum founder and developers to show the world what Ethereum is all about, what real-world use cases it offers, and how people could help raise awareness about it. The DevCon gave investors a sneak peek into what they could expect from their ETH investments in the later months.
Coming back to the NEO DevCon, what’s quite interesting is that this Chinese project has picked San Francisco for its first DevCon. It will give the NEO founder a chance to showcase what a NEO-based smart economy could look like right in the middle of world’s biggest technology hub. In short, expect more people to jump on the NEO rocket ship once they get to hear about this Ethereum competitor.
I believe the DevCon could give us the next inflection point on NEO price chart. I’m not the only one who foresees a price surge in NEO coin this year. A former Wall Street strategist, Tom Lee, who has earned popularity for his wild Bitcoin predictions, forecasts that NEO could hit $225.00 in 2018. (Source: “Tom Lee, bitcoin’s earliest and most bullish forecaster on Wall Street, is even more positive after crash,” CNBC, January 18, 2018.)
Like always, I’d conclude with a forewarning that cryptocurrencies are acutely volatile investments. Investors must do their own research before jumping on any crypto bandwagon.
Nonetheless, I’m standing by my optimistic NEO price prediction 2018, setting a $200.00 price target, slightly lower than Tom Lee’s.