NEO is centralized on purpose - NEO founder Da Hongfei

  • NEO/USD settles above $10.00 handle.
  • NEO founder Da Hongfei explains the issue of the platform centralization.

NEO, the 19th largest cryptocurrency by market value, has gained over 11% in recent 24 hours to trade at $10.52 by the time of writing. The coin touched $10.70 during early Asian hours, however, failed to hold the ground.  

Looking technically, NEO/USD is attempting to break above DMA50 currently at $10.60. Once it is out of the way, the upside is likely to gain traction with the next aim at psychological $11.00. Considering the upward-looking daily RSI (The Relative Strength Index), the further growth looks likely, provided that the broader cryptocurrency market retains its bullish momentum.  

On the downside, a move below $10.00 will expose the intraday low of $9.67 and lead to an extended correction towards $9.00. 

Speaking at Consensus conference in New York, NEO founder Da Hongfei answered the criticism about the high level of centralisation within NEO ecosystem where NEO Foundation controls the majority of “consensus nodes”. He explained that it had been done on purpose to make the platform more scalable and efficient. 

“If you are comparing NEO to Bitcoin, it is more centralized. That’s intentional. We want to keep it more efficient,” he said in the interview with Decrypt. 

Hongfei also explained that a compromise on the levels of decentralization allows to achieve higher transaction speeds. Moreover, centralized model has some other benefits like making forks easier to implement.

NEO/USD, 1-day chart

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