Da Hongfei -Founder of NEO/CEO at Onchain about NEO
Editorial Team

Ran Neu-Ner, a member of the crypto community, hosted the founder of NEO platform on CNBC Africa. A resume of his interview is presented as below:

The interview begins with a focus on China and this week’s developments over the regulatory framework for ICO-s. He accurately asked Da Hongfei if this situation had an impact on the work of NEO specialists. Da Hongfei recognized the pressure on the market volume due to the ICO’s shuttering and confirmed that they are on standby.

NEO is a blockchain or an open network for the Smart Economy, and as a result it is not built for ICO-s. However, Chinese regulators’ decision affects NEO activity.

Defining the difference between ICO-s and Smart Economies, Da Hongfei explained that his vision is to have a real economy – trading in different tokens – running on the NEO blockchain. Currently, you can see many ICO-s not being connected to the real economy. As a result, many decentralized applications on Ethereum remained unused.

Da Hongfei’s team is planning to create economic applications that run on smart contracts, on the NEO blockchain. The latter has three basic pillars: the digital assets, the smart contracts and the digital entities. You can link to the real economy only if you have a digital identity, and to the real world via blockchain world. According to Hongfei, the first net has been launched since a year, and a month ago it was upgraded to 2.0 after the rebranding. Today, they are in a testing period for some applications. They just launched the smart contract a month ago, and some more development is on the go.

NEO is very connected to the community, and about 100-300 develops work on the project, with some of them being the core ones. The next question referred to the difference between the two tokens: NEO and GAS.Hongfei pointed the innovative design as “weird”. It is a dual utility token. One is like equity and the other like a transaction fee. You use NEO to vote and to govern the blockchain, while the GAS token to pay transaction fees, deploy smart contracts and execute smart contracts. Subsequently, Neu-Ner asked Hongfei if the GAS is the mineable token and NEO is in fixed supply.

The answer was a bit frustrating. According to him, it is as if a NEO holder virtually mines GAS with his NEO tokens. Therefore, every GAS that is consumed on the blockchain will be redistributable proportionally to all NEO owners. Coming back to the first topic, Neu-Ner asked for Hongfei’s opinion about the duration of ICO-s ban.

Da Hongfei believes that the ban will not be temporal as the raising money form public is illegal in China without at least an approval. On the other hand, raising money from accredited investors is still legal in China. As a result, if you want to build a decentralized application, you can speak to Chinese investors privately, and if they are less than 200, it could be regarded as private fundraising.

The conclusion is that in China we have passed through the phase of public fundraising to the collection of a few high net worth individuals or institutions.