NEO Price Surges After Founder Says Government Collaboration 'Possible'

The NEO price surged on Monday after Dutch financial news outlet Het Financieele Dagblad published an interview with NEO founder Da Hongfei.

In the interview, which was partially translated into English by Yicai Global, Da makes several significant statements about China's crackdown on cryptocurrency. Most notably, hespeculates that a future collaboration between NEO and the Chinese government is a possibility. Here's the relevant statement:

“I do not expect the government to call me in the short term and say, ‘Let’s use Neo as the blockchain technology infrastructure in China.’ But in the medium term? Why not? I think it’s possible.”

The NEO price began to soar after the interview was published. Within the past 24 hours, NEO has climbed by more than 26% and is now trading at $24.94. This is NEO's highest mark in more than two weeks and raises its market cap to $1.25 billion. Moreover, the advance enabled NEO to leap over ethereum classic to secure the 10th spot in the market cap rankings.

NEO Price Chart from CoinMarketCap

It's not surprising that investors responded positively to the interview. Most importantly, the fact that the government contacted Da prior to the official crackdown seems to indicate that regulators are not planning to widen the net around Chinese cryptocurrency projects like NEO--at least not in the near-term.

However, investors should be a bit more cautious about trading on Da's statement that a future collaboration with the government is possible. For starters, Da stated it was not likely to happen anytime soon, so investors would have to be willing to maintain their holdings indefinitely while waiting for a payoff that may or may not materialize. Additionally, investors should remember that the Chinese government has already begun researching blockchain technology in-house--even establishing a digital currency research institute--so there is a strong possibility they will maintain their blockchain infrastructure using proprietary platforms.

Featured image from Shutterstock.

Last modified (UTC): September 26, 2017 3:42 PM

Share
Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets and cryptocurrencies. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He holds bitcoin, but does not engage in day trading. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.

News Tip?

tips (at) ccn.com

About CCN.com

CCN.com, also known as CCN Markets, is a financial news site reporting on Market News and Gaming. Op-eds and opinions should not be attributed to CCN Markets. Journalists on CCN Markets follow a strict ethical code that you can find here. You can contact us here. You can read more about us here. Find our journalists here. U.S. Office: New Jersey, USA. Twitter. Facebook. LinkedIn. Youtube.

We are using cookies for third-party applications like Twitter, Youtube embeds, Google Analytics and Google AdSense.

Privacy Policy