As I write Neo has dropped almost 20% in the last 24hrs on Bittrex; this is on the back of rumours that the Chinese government are going to suspend ICOs pending regulation. There was a sharp selloff on NEO as soon as the news broke but ETH was unaffected and actually it has gained of 7% in the last 24hrs.
Anyone who has followed the progress of NEO will know that they have been working with the Chinese authorities every step of the way; presumably to avoid situations that will have a negative impact on the NEO platform, especially a couple of weeks before the first ICO on the platform, Red Pulse, is released to the public.
So with all that in mind, I will give you my theory. I believe it is likely that any regulation of ICOs in China is aimed at having a negative impact on NEO's main competitor ensuring that NEO will expand even more rapidly than anyone could have imagined. This move has been in the pipeline for quite a while and Da Hong Fei will be fully aware of it. It's no coincidence that this news come out so close to the launch of Red Pulse, which looks an extremely promising venture.
What we will know soon enough is the nature of the proposed regulation as well as how closely NEO is working with the Chinese government. If regulation is rolled out that affects NEO and ETH in equal measure then we will know that all these claims have been just to hype the coin, no substance whatsoever and the price will drop accordingly. However if I am right with my theory we can than make the assumption that NEO is a de facto Chinese government project and the price will go to the Moon.
Thanks for reading and please let me know your opinion on what is happening with NEO right now.