The NEO digital asset saw an array of conflicting news pressures. On the one hand, the large-scale Ontology airdrop is looming on several exchanges, including Binance and Huobi Pro. On the other hand, the recent prominence of NEO in the news has invited scrutiny and wider criticism.
In a lengthy thread, the weakness of NEO consensus nodes was explained, hinting at a hidden layer of centralization. This approach makes NEO similar to Ripple (XRP) or IOTA, where consensus still depends on centralized services.
1/ NEO thread. I never paid any attention to this project because "it's a Chinese Ethereum!" just sounded so stupid for reasons I didn't even know where to begin to explain. If you, like me, ignored NEO for this reason, here's a quick recap of how hilariously bad this project is:
According to the social media criticism, nicknaming NEO "the Chinese Ethereum" means little, precisely due to the presence of consensus nodes. The consensus on the Ethereum network still remains truly decentralized, even if the price is lower speed.
But just as the warning was given, it became a reality as one of the NEO consensus nodes had a glitch. Since there are only seven nodes in the world, and those are impossible for volunteers to operate, this affected the network negatively.
In the case of a NEO node crashing, the rest of the nodes cause a delay in achieving consensus. At this moment, all consensus nodes are run by the NEO developer team. But in 2018, the project will aim to disable the system, and allow the voluntary running of nodes.
But the NEO project defended itself, showing that the consensus nodes are a workable solution for now:
$NEO Consensus mechanism (dBFT) continue to produce blocks even when CoZ Dev Chris Hager "kills" one consensus node.
(NOTE: This was executed on a NEO private-network, there was no harm done to the NEO mainnet)https://t.co/t0yyO1qJ18
Despite the work done, however, the criticism about centralization may remain valid, at least for a while.
NEO Market Price Stalls
The NEO market price so far keeps most of the gains, hovering around $117. Despite the criticism, NEO sees price pressures mostly from Asian trading, and may move independently from news both positive and negative. When it comes to publicity, NEO may have plenty of that as it begins its world tour soon.
Additionally, more ICO projects are choosing NEO as their underlying platform, adding to the publicity.
In the past 24 hours, NEO lost around 2% in dollar terms, to $117.32, sinking even faster in Bitcoin prices. The GAS asset has slumped further, sliding 10% in the past week to $34.73.
For 2018, there are extremely bullish predictions seeing NEO reach $1,000, in a manner similar to Ethereum. But for now, the asset sees conflicting pressures, and the price remains volatile, mostly directed by speculative trading. Yet in three months, NEO has tripled its price against Bitcoin.