NEO has been called “China’s Ethereum”. The Western market first collectively learned about Antshares, a smart contract and decentralized application (dApp) platform, just ahead of the company’s rebrand to ‘NEO’ – which is Greek for “newness”, novelty and youth. That merely one exchange offers bitcoin-NEO trades has led to a bottleneck in supply. Prices skyrocketed in the weeks ahead of the rebrand. Antshares’ ICO was in the fall of 2016.
NEO development began in 2014 and the blockchain-startup ONCHAIN is overseeing its enterprise version. Already the platform offers more languages than Ethereum supports. NEO’s partners include crowdfunding platform WINGS and multinational technology corporation Microsoft. Reports last year of a partnership between Alibaba and the former AntShares were false, though the companies have worked together.
NEO’s collaboration with Wings is for research and development purposes. With Ali Cloud and ONCHAIN, NEO is working on a proof of existence e-mail repository.
That NEO representatives seemingly have the okay from the government – having attended a government-sponsored industry conference – could bode well for the blockchain project. As ONCHAIN’s CEO, and Antshares founder, Da Hogfei, tweeted:
— Da Hongfei (@dahongfei) July 13, 2016
NEO Price History as Antcoin
The token price, still trading under its former ticker ‘ANC’ or ‘ANS’ across the web on this article’s publish date, and until the rebrand is complete in the third quarter of 2017, skyrocketed particularly from June 19-20. The platform increased from $1.65 on June 15 to $10 at the time of writing on June 20. It then corrected and currently sits at just shy of $7, according to CoinMarketCap. Antshares’ all-time high sits at $11.79.
The decentralized smart contract platform’s first price history, according to CoinMarket Cap, started this past fall. The project’s native token started trading at a price of 55 cents before settling between approximately 10 cents and 30 cents. ANC trended south until the end of October 2016, when it reached a nadir of 8 cents. The price then skyrocketed to 31 cents. After a quick price increase, the price drifted downwards until March 2017 when it, along with much of the crypto-asset complex, increased in value.
Per the rebrand, not only does Antshares become NEO, but Antcoin (ANC) becomes ‘GAS’. “So, it is no longer a ‘dividend interest’ sort of asset, but a utility sub-token for network functionalities,” a NEO community member told Hacked.com.
Under the Hood
NEO smart contracts are based on NEO’s Virtual Machine, which is similar to Ethereum’s Virtual Machine. NEO plans to soon release its “Smart Economy” platform, which has also been termed “Smart Contracts 2.0”.
NEO is designed to solve the same problems as Ethereum. NEO’s incorporation of sharding and concurrency in its computer science model solves scalability problems. Ethereum has yet to make such changes to better scale that smart contract and dApp platform.
Delegated Byzantine Fault Tolerance
By using Delegated Byzantine Fault Tolerance (dBFT) for its blockchain operations – a consensus method proponents claim offers better security for blockchains – NEO places itself in the company of the well-known blockchain project Hyperledger, and the lesser-known Stellar. “Specialized bookkeeping nodes” reach consensus via “delegated voting” per NEO’s dBFT model. It takes a two-thirds vote for approval of a current copy of a blockchain.
“After investigating and studying the crypto-industry and blockchain technologies for several years, we came to the conclusion that the delegated Byzantine Fault Tolerance alternative (or dBFT) is best suited for such a system,” Erik Iz, co-founder and core developer at Antshares, stated on BitcoinTalk. “It provides swift transaction verification times, de-incentivises most attack vectors and upholds a single blockchain version with no risk of forks or alternative blockchain records emerging – regardless of how much computing power, or coins an attacker possesses.”
Nest Smart Fund
With the rebrand in NEO’s past, the team is looking forward to expanding its western-focused marketing efforts, a NEO community member told Hacked.com. Moreover, it’s partnered on a “do over” for the cryptocurrency community.
“Nest is a whole new form of smart fund written in Antshares smart contracts,” writes NEO about its new ‘DAO’ style fund called Nest Fund, which uses NEO smart contract technology.
The DAO, or ‘decentralized autonomous organization’, had set out to become a decentralized venture capital fund based on Ethereum’s smart contract code. It failed.
NEO adds about its attempt at a similar fund: “Nest aims to, with the power of blockchain, eliminate and neutralize problems like high threshold, high risk, low efficiency and moral risks. Participants invest, manage and exit with smart contracts instead of application to certain organizations. Antshares’ Blockchain enables everyone to join the Nest, with a 0 threshold and 100% transparency, with a safe and free exit option at any given time.”
For a cryptocurrency community that likes to be right – they told you so about Bitcoin, after all – Nest could garner serious interest for users looking to make a point, and prove the ideas behind crypto right.
Numerous Blockchain Products
Nest Fund isn’t the only blockchain-based service or product offered by NEO. Other than its parent, ONCHAIN, NEO leads projects including blockchain-based browsers, a web-based crypto-asset wallet, as well as an online crowdfunding fund that is not the aforementioned Nest. The team also partnered with Microsoft Azure to bring blockchain technology to the server experience. This project is similar to partnerships pioneered by Azure in the west.
Antshares is available on just five exchanges currently, and that limits the amount of buying demand for ANC. Just a single exchange buys and sells ANC for Bitcoin. Now, as many westerners learn of NEO for the first time, the demand will only increase.
But a lack of information available in English about NEO could slow demand. When NEO’s implementation of blockchain technology receives increasing press in the English-speaking world – and it likely will considering its corporate partners – there could be further price implications. The crypto-asset is currently the 23rd largest, according to Coin Market Cap. On CoinCap.io, it is the 21st largest.
Only time will tell with NEO, but there are lots of intriguing projects in the works at the blockchain company, including authentication work with Chinese authorities to map real-world assets with smart contracts. The company also has numerous patents, including ones for cross-chain interoperability. It’s partnered with numerous blockchain projects, like Bancor, Agrello, Coindash and Binance.
Due to NEO’s corporate partners – among whom are included Microsoft, etc. – and its under the radar Ethereum-esque functionality, we give the project a 7.75 out of 10.
In order to use the new version of the platform, NEO, Antshares users do not need to do anything other than download the new client/app when it is ready later this year. ‘ANC’ becomes ‘NEO’, and ‘ANC’ becomes ‘GAS’.
ANC – as it is still currently referred to throughout much of the digital asset realm until the rebrand to ‘GAS’ is completed – can be purchased on the western-facing digital asset exchange Bittrex. In the east, the asset can be found at exchanges Yunbi, Yuanbao, Jubi, and 19800.
Featured image from NEO company presentation
Bitcoin’s Offensive Continues as Prices Breach $3,400
Bitcoin’s value jumped to a new record on Tuesday, a clear indication that the bull market was back in vogue following a month of turmoil.
$3,000 & Beyond
The virtual currency (BTC/USD) rose 2.4% to $3,468.00 in overnight trading, according to Bitstamp. Before the weekend, the BTC/USD had crossed the $3,000 mark only once.
At current prices, the market value for all bitcoins is more than $57 billion – the highest on record.
While post-fork exuberance shows no signs of fading, traders are reminded that bitcoin’s recent leg up has been accompanied by decreasing volume. In fact, a similar trend has been observed during every leg up from $1,800.
Zooming out to the 1-day Bollinger Band, the market appears to be overbought. A historical analysis reveals that, more often than not, a puncturing of the Bollinger Band in either direction leads to a broad pullback in the market.
The daily RSI also adds credence to the view that the market is approaching overbought territory.
Bitcoin Cash Trading Well Below Its Peak
Bitcoin’s surge followed the creation of a spin-off digital currency – Bitcoin Cash (BCH) – last week. The newly minted coin spiked above $700.00 on Aug. 2 before a series of volatile moves dragged prices back toward $200.00.
BCH was back above $300 on Tuesday, having gained more than 27%. Its total market is valued at more than $5 billion.
Coinbase Caves to Investor Demand
U.S. cryptocurrency exchange Coinbase has announced that it plans to support BCH as of January 2018. Initially, the exchange said it would not support the new coin, triggering outrage among users and a surge in withdrawals.
A contingency of Coinbase customers also threatened to sue the exchange for not supporting BCH, equating the decision to a brokerage withholding new shares from its investors.
“We are planning to have support for Bitcoin Cash by 1 January 2018, assuming no additional risks emerge during that time,” the leading exchange said on its blog.
One of the things that’s been bugging me about blockchain technology is another technology that is on the rise just as fast and could possibly make it irrelevant.
Quantum computing is currently under development by some of the biggest tech players in the world. IBM, the NSA, and Google are all working hard to make everything that we know about computers irrelevant within the next decade.
The idea is quite simple, in the world of quantum physics anything is possible. For example, throwing a basketball through a brick wall is not a very probable thing to occur but the odds of it happening are greater than zero.
In computers, it means rather than making one calculation at a time in a sequential order, a quantum computer could theoretically just calculate all the possibilities at once.
So things like passwords or private keys, for example, could theoretically be reproduced in a matter of moments. This of course, threatens not just Bitcoin but all digital payments, online banking, and virtually all areas of encryption and cyber-security.
Now, we’re still several years away from this becoming a real concern. So now is the right time to start building the infrastructure to protect ourselves against it.
A company called Droplex, who’s pre-ICO is just entering its final hour aims to build a bullet proof blockchain that will be impervious to future Q-hackers. Now, I haven’t personally looked too deep at this project as of yet but I am extremely comforted by the fact that somebody is building a fix for this already.
Perhaps in 5 years or so we can have another debate about the best way to upgrade Bitcoin for Q-safety.
eToro, Senior Market Analyst
Stocks are down
Bezos Briefly Best
August 1st BTC Deadline
Please note: All data, figures & graphs are valid as of July 28th. All trading carries risk. Only risk capital you can afford to lose.
Problems pursue in Washington for the precarious President.
The newly appointed communications director Anthony Scaramucci is now taking swipes at the chief of staff and Trump himself has been lashing out at his own attorney general Jeff Sessions.
Some speculate that Trump is getting ready to fire Sessions in order to get the special prosecutor Robert Muller off his back.
Meanwhile, the bill to repeal Obamacare was just shot down in the Senate as the notable Republican and previous presidential candidate (2008) John Mccain voted no.
Stock markets have not been performing well so far in Asia and the European markets just opened with a notable gap down.
At least the USD seems to be getting some support.
Congratulations to Jeff Bezos
…for briefly becoming the world’s richest person. Jeff managed to snag the top spot off Bill and kept it for almost 3.5 hours.
Most of Bezos’ fortune is in Amazon shares, so when the market opened with a significant gap up his net worth reached $90 Billion. However, a sour earnings report from Amazon sent the stock back down.
Turbulence in Crypto
If he times it right, Bezos may just be able to buy all of the cryptocurrencies currently in circulation, which is now holding steady at about $90 Billion.
Or not, the sale of 17% of all AMZN shares along with word that the founder is selling would probably push the price significantly down before he could offload most of them. Of course, that much buying pressure would also move the cryptos up.
In any case, if anybody were considering to buy that many digital assets they might want to wait until next week. Given that August 1st is coming up this Tuesday and still nobody really knows what’s about to happen to Bitcoin.
For those of you looking to trade this event, make sure to get your orders in as early as possible as there may be some downtime on BTC depending on the way it plays out.
Wishing you and yours a very pleasant weekend.
This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.
Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.
Featured image from Shutterstock.
Valuing Cryptocurrencies and Blockchain Applications
Arguably the most interesting financial trend of 2017 is the spreading of cryptocurrencies, especially in the Ethereum ecosystem. With the ICO boom of this year, a lot of different business models have been connected to tokens or blockchains of their own. This brings up several questions in the mind value-conscious investors, as given the special properties of these coins, and especially considering the various distribution and usage schemes of the tokens, valuing them is tricky, to say the least.
Whether or not we are in a bubble currently is a layered question, as we are definitely in a huge speculative wave that will end badly for several coins, but the segment is in the early phase of adoption, and the market as a whole will likely multiply in the coming years.
As I concluded in my comparison with the Dot-Com bubble, selective investing in the ICO-boom is vital for long-term investors. To make things more complicated, traditional valuation models generally fail with cryptocurrencies, because of the hybrid stock-commodity properties of them and the novelty of the technology, coupled with the questions regarding the future usage patterns.
Is it possible to set up a framework to analyze all the different business models and value the connected coins? Or is it possible to, at least, determine hard guidelines to follow when selecting the coins to hold or forget? I will answer that question below and in the coming second part of the article.
- ICO Analysis: Bloom October 17, 2017
- Daily Analysis: Volatility Near Record Low 30 Years After Black Monday October 16, 2017
- Technical Analysis: Ripple Breaks Out Amid Ethereum Upgrade October 16, 2017
- Jamie Dimon May Hate Bitcoin, but J.P. Morgan Is Embracing Blockchain October 16, 2017
- Ethereum Gets an Upgrade October 16, 2017
- Trade Recommendation: EURJPY October 16, 2017
- Trade Recommendation: Waves October 16, 2017
- A Surprise Turn to the Right October 16, 2017
- Asian Market Update – Monday: Asian Shares Point Higher Ahead of a Big Week in China October 16, 2017
- It’s Decision Day for Catalonia’s President October 16, 2017
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