NEO coin, formerly known as AntShares, is surging today after concerns about Chinese regulators shutting it down are starting to ease, as well as NEO founder Da Hongfei indicating during a recent interview about a possible collaboration with the Chinese government.
NEO coin a China-based crypto, took a hard hit when the country’s regulators announced they were banning initial coin offerings (ICOs). NEO dropped off as much as 40% the day the announcement was made on September 4th, barreling all the way down to $13 by September 15th from a mid-August high of $58.50.
With cryptos in full recovery mode, NEO has recovered some of that loss, currently trading at a cool $26 with room to run. NEO currently has a 50-day simple moving average of $30. A break through this level would open up the possibility for a run to $45, and tests again of mid-August highs.
This surge is being fueled by a recent interview with NEO founder Da Hongfei, in which Da revealed that Chinese regulators consulted with him prior to announcing the official ban on initial coin offerings (ICOs) and subsequent warnings to cryptocurrency exchanges to shut down operations.
Da also speculated that a collaboration between NEO and the Chinese government is an option in the future.
Since the Da interview was published, NEO has popped more than 25%, trading at its highest levels since September 12th, and leap frogging ethereum classic (ETC) as the 10th highest market cap amongst traded coins.
Investors should definitely take what Da said with a grain of salt regarding Chinese government collaboration. While that may be a possibility in the future, the Chinese government historically likes to ensure everything they produce is proprietary and under their full control; after all they are a communist nation. Furthermore, the Chinese government is already creating their own in-house blockchain technology possibly as a competitor or replacement for NEO.
Choose your investments carefully.