Why Is the NEO Cryptocurrency Soaring Today?
A well-respected ratings agency gave its first “A” grade to the Ethereum of China.
In previous week an analysis from Coinmarketcap stated that the NEO cryptocurrency dealt as higher as 17.2%. That day, all main digital currencies did not go higher than 7%, but NEO’s lift was remarkable. This not so familiar e-currency has created curiosity in the market.
What is NEO?
Let’s get familiar with this currency called NEO. It is sporting $8.7 billion market cap and at present is the sixth-largest cryptocurrency. Before a year its tokens value was $0.11, but now the value of each token is $117, which is 1170% return.
The design of NEO is quite similar to that of Ethereum. NEO has specified its objective to build a smart economy which is built on a decentralized network of digital assets and blockchain contracts. NEO wants to improve and reform the movement of money in the global economy and never tends to be the substitute of traditional currencies. The support for smart contracts is the root of a programming platform allowing developers to create applications with direct support for NEO coins and contracts.
To explain further, NEO is a smart contract where buyers and sellers are allowed to decide definite terms and to accomplish them before money is shifted from one side to another. For instance, in smart contracts, billing system payments are issued only after both the buyer and the seller confirms that the appliance has been sent and also received.
In Bitcoin there is a provision for just send and receive system, where the sender is allowed to add a note with every transaction. Whereas Ethereum and NEO offers lots of computer based processing of more complicated contracts. If a person is able to program a set of conditions, then on such platforms, it can be constructed into transactions.
The major difference between Ethereum and NEO is their future spectators. Ethereum was created in Russia and now it is handled in Switzerland and is an effort that has reached out in the whole world. As against this, a Chinese group started NEO for the Chinese market and is locally managed by few China based servers that process NEO’s blockchain and also transactions.
As compared to Ethereum or Bitcoin, NEO is more centralized and Da Hongfei, its creator desires to convert it into a better distributed model. There is a supportive operation that allows NEO to rapidly process transactions, and there is no need to open security holes, but to stay near from the model of a decentralized system.
What’s going on with NEO nowadays?
Weiss Ratings, an investment ratings bureau has given outstanding rank to Ethereum of China. From 1971, a firm that is rating everything from insurance plans to financial services is considered to be the highest esteemed authority on the quality of discrete cryptocurrency models. NEO received a decent B-grade from Weiss Ratings at the end of January. So in the market where Bitcoin, the leading coin receives a C+, and Ethereum getting a B, NEO’s rating can be considered quite attractive.
The recent record shows that NEO received rating above B+, specially an A- from Weiss. Before few days, this rank has been given, though many cryptocurrency fans are now getting aware of this latest progress.
Weiss’s main focus is to separate those that are economically steady investments from those that are risky ventures, and to put a premium on excellent operations and a lasting view. Because of great speculation risks and less advanced technology Bitcoin has scored low rank on the other hand NEO seems to have less speculation risk and has more advanced platform. So NEO is going higher on a very silent day on the cryptocurrency markets.
So it’s time to buy NEO coins by the boatload, right?
NEO’s competitors has received grades as “good” and “fair”, but NEO is the first coin to receive an “excellent” grade from Weiss. Certain coins have to relax for a D grade, and as per Weiss norms, they are interpreted as “weak” investment. The chief coin that comes in this group is Bitcoin Gold, a recently forked bitcoin version that is intended to allow high speed graphics cards from AMD and NVIDIA again engaged in cryptocurrency mining game.
Weiss also admits that, at present there is nothing that can be claimed as totally safe cryptocurrency. The Weiss firm’s states that, whatever the ranks are given by any rating agency, it is after all an opinion, for the people in the connection of opinions from analysts, developers and consumers. As the cryptocurrency market is supposed to have fast and sudden changes, so NEO’s rank may also fall due to any reason. Buying Neo at present is like gambling on smart contracts to acquire place in China. Currently NEO seems to be a leader in this cryptocurrency market, but it may be left behind by any new competitor in the long run or even Ethereum.
So to say, even the solid Weiss rating cannot provide any type of backing or support to anyone to start pouring their life’s savings into NEO coins. This can be considered as an opinion from a reputed authority, in such a fast changing market. In future, NEO would be or not in the list of winners, that no one knows. So it is advisable to invest small amounts, so in case if anything goes wrong, a person is able to manage the loss incurred. This applies even for NEO and all the other cryptocurrencyes and also for all other investments.