NEO Shares New In-Depth Financial Information Before Its Crypto Reconfiguration This Year
NEO Releases Detailed Financial Information Before Its Reconfiguration This Year
- NEO is going to release NEO 3.0
- Critics claim the network is not decentralized enough
- NEO is going to be experiencing a transformation this year. Back in April, Erik Zhang, the co-founder NEO and manager of the company supporting NEO's development, announced that they will be relaunching an optimized version of the blockchain network they created, which is referred to as NEO 3.0.
NEO Gets Prepared For NEO 3.0
During a conversation with CoinDesk, the co-founder of NEO talked about the new network and how the process of moving to the new chain will be conducted. He explained that token holders will have to turn their NEO into new assets. However, users will not have to provide know-your-customer (KYC) information since the NEO Foundation is going to be destroying the old asses.
As he explained, users will only have to keep their private keys and new tokens will be automatically dropped to their wallet address. Moreover, there will be several community leaders that will work in order to make it easier for users to move to the new network.
The NEO Foundation released a financial report to CoinDesk in which they show that the Initial Coin offering (ICO) in 2016 raised $97,517 and also 8,169 Bitcoin (BTC). Most of these BTC were liquidated by February 2018.
At the same time, there were 100,000 unclaimed NEO tokens that people purchased during the ICO. Nonetheless, these coins were never added by investors to their wallets. In October 2019, they will come back to the Foundation, unless they are registered for the swap.
There are several critics to NEO and how it was created. Indeed, they claim that is the Chinese Ethereum (ETH) but with the approval of Chinese regulators, which is something not to be very proud of in terms of privacy for users. The crypto space ethos is completely different from the one that NEO promotes.
Dovey Wan, a recognized venture capitalist focused on Asia, explained that NEO is a “compliant” blockchain project and that the leaders have a close relationship with authorities in China. Most of the masternodes of the network are run by the company itself.
According to CoinDesk, most of the companies that worked with NEO have been very lucrative for the co-founders of the company. Da Hongfei and Mr. Zhang created different independent entities that were established after the Initial Coin Offering, including the Neo Global Capital (NGC), NEO Eco Fund, and the NEO Global Development Fund (NGD Fund). These funds invested in different projects that operate on the NEO network.
At the same time, Hongfei explained that there is no formal voting mechanism for community input and the decisions are made by both co-founders. This is something that has received many critics and that is controversial. According to Ethan Fast, a member of the City of Zion, the ecosystem works with a “benevolent oligarchy.”
At the time of writing, NEO is the 19th largest digital asset in the market with a valuation of $855 million. CoinMarketCap shows that the virtual currency has a price of $12.13 per coin.