What is NEO and how do I trade it?

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What is NEO?

NEO is an open-source, decentralised blockchain platform launched in 2016 by Da Hongfei and Erik Zhang in Shanghai, China. Originally known as AntShares, NEO aims to create a ‘smart economy’ by integrating digital assets, digital identities and smart contracts. This economy enables developers to build decentralised applications (dApps) and digitise physical assets using blockchain technology.

NEO stands out for its focus on regulatory compliance and its unique dual-token model consisting of NEO and GAS tokens. The NEO token represents ownership and grants holders governance rights in the network, while GAS tokens are used to pay for transaction fees and network services.

How does NEO work?

NEO operates on a blockchain network that records transactions in a decentralised ledger. It uses the Delegated Byzantine Fault Tolerance (dBFT) consensus mechanism, an advanced form of proof-of-stake (PoS) that allows for high transaction speeds, scalability and regulatory compliance.

In dBFT, NEO token holders vote to elect delegates, known as consensus nodes, who validate transactions, add new blocks to the blockchain, and maintain its security and efficiency. As a result, the network is theoretically capable of processing up to 10,000 transactions per second.

The NEO ecosystem operates with two main tokens, NEO and GAS.

• NEO represents ownership and governance rights. Holding NEO allows users to vote on network decisions and passively generate GAS tokens. The total supply is capped at 100 million NEO, and the token is indivisible.
• GAS is used to pay for transaction fees and network services, such as smart contracts. GAS is generated by holding NEO in a wallet. It’s divisible, and it incentivises network participation and resource allocation.*

*It should be noted that GAS rewards diminish over time, providing ongoing incentives for network participation but at a gradually decreasing rate.

What’s the NEO/USD price history?

The NEO price history has fluctuated significantly since its mainnet launch and initial coin offering (ICO) in 2016. 

Following its rebranding from ‘AntShares’ to NEO in June 2017, the cryptocurrency experienced a substantial surge in value, riding the wave of the broader cryptocurrency bull market. The rebrand, coupled with the launch of NEO 2.0, which added smart contract functionality amid growing market interest in smart contract platforms, contributed to a remarkable price increase.

By January 2018, NEO reached its all-time high of $196, showing a remarkable increase from its ICO price of $0.032.

In 2018, the cryptocurrency market downturn – often referred to as the ‘Crypto Winter’ – significantly impacted NEO's price, which dropped to below $8 by December 2018. This period was characterised by increased regulatory scrutiny, particularly in China, which affected NEO due to its strong ties to the Chinese market.

NEO saw a resurgence in 2020 and 2021, driven by growing interest in decentralised finance (DeFi) and smart contract platforms. The announcement of Neo3 (N3) in August 2021, promised enhanced security features, optimised transaction speeds, and improved tooling for developers, boosting market optimism. The price fluctuated between approximately $9 and $25 in 2020, reflecting the volatile nature of the crypto market

The years 2022 and 2023 saw NEO's price movements influenced by a combination of technological advancements and broader market trends. The continued expansion of the Neo ecosystem, including the growth of NeoFS (decentralised storage) and NeoID (decentralised identity), maintained market interest in the cryptocurrency. However, macroeconomic factors and regulatory uncertainties in various jurisdictions continued to impact price volatility, with NEO closing below $14 by the end of 2023.

2024 started with NEO trading at around $10.35, followed by a substantial rally in February following the announcement of the NEO EcoBoost 2.0 program, which allocated $200 million to support ecosystem growth. By March, the price had climbed higher, but in May, a broader cryptocurrency market correction, triggered by regulatory concerns in the US, caused NEO to drop again.

The successful launch of Neo X, an Ethereum Virtual Machine (EVM)-compatible sidechain, in July 2024 reignited interest in the project, driving the price back up by August 2024. The final quarter of 2024 saw NEO's price stabilise around $12.50, as the market digested the impact of these developments and awaited further progress on Neo's roadmap, particularly the anticipated improvements to NeoFS and NeoID systems.

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Which factors might influence the NEO coin live price?

As with any asset, the price of NEO can be influenced by a combination of unique, sector-specific and broader economic factors. Here are some common ones:

Partnerships – NEO was the first blockchain to join Microsoft’s .NET foundation. This partnership contributed to the early NEO success, such as its ICO. Partnerships can help raise awareness for a cryptocurrency, and whether or not this is good may depend on the reputation of the partner over time. 

Technological developments – feature upgrades, announcements and successful implementations, such as NEO N3 and NEO X, can positively influence market sentiment, potentially moving the price higher. Meanwhile, a failure to catch up with the competition could erode the community, possibly leading to lower demand for NEO and price decreases.

Regulatory environment – legislation of cryptocurrencies is still evolving. Changes in regulations, particularly in China where NEO originated, could significantly influence the market price. Government pressure against cryptocurrency activities could potentially move the price lower, while easing of regulations may contribute to an increase.

Market trends and sentiment – the NEO coin price, like with many altcoins, can be highly sensitive to broader trends and sentiment in the cryptocurrency market. Consider how the NEO price correlates with price movements of major tokens, such as Bitcoin and Ethereum. Often, when the price of BTC or ETH goes up or down, smaller tokens such as NEO move along with them.*

*Past performance doesn’t guarantee future results.

What are the NEO trading hours?

NEO operates on a decentralised blockchain network that is active 24 hours a day, seven days a week. This means you can trade NEO at any time, including weekends and holidays.

• Cryptocurrency exchanges – many exchanges facilitate 24/7 NEO trading, allowing for continuous market participation.

• Online trading platforms – some reliable and trusted brokerages provide NEO trading via CFDs.

If you choose to trade CFDs, you can follow the NEO performance live in US dollars with our comprehensive NEO/USD price chart.

Alternatively, you can check out our NEO/BTC price chart.

Monitoring the cryptocurrency’s activity can help you to keep an eye out for any key fundamental or technical events that may affect short-term movements in its value.

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How to trade and buy NEO coin

NEO is a cryptocurrency, meaning that it can be bought or traded directly on cryptocurrency exchanges and through peer-to-peer transactions. Traders may also choose to trade NEO via a derivative, a financial product that takes (or ‘derives’) its value from the price of the underlying asset.

You can use a contract for difference, or CFD, to trade on the price of NEO pairs. A CFD is a contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.

CFDs allow you to trade on whether you think an NEO pair will rise in value (called ‘going long’) or fall (‘going short’). CFDs give you access to leverage, allowing larger positions with a relatively small outlay. This amplifies your potential profits, but also your potential losses, making CFD trading risky. 

Learn more about trading cryptocurrencies with Capital.com in our comprehensive guide to cryptocurrency trading. 

Aside from CFDs, you can also trade NEO pairs through instruments like futures, options, ETFs, and mutual funds. Each offers an alternative to the leveraged trading of CFDs, suiting different risk profiles and strategies.

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