NEO Reacts Positively After China’s Blockchain Service Network Deal

Over the last year, China has not been very friendly when it comes to cryptocurrencies, especially with bitcoin mining. But with blockchain technology, the country is taking a different approach.

Recently, the team behind Neo announced that they will be working with China’s Blockchain-based Service Network (BSN) to create a permissioned network named  “Jiuquan Chain”. This blockchain will be one of the ten blockchains on China’s BSN.

The main objective of Jiuquan Chain is to expand NFTs adoption in China. The NFTs in the country will be renamed as Decentralized Digital Certificates (DDCs).

Yifan He, CEO of Red Date Technology and the Executive Director of BSN Development Association commented: 

“NFT/DDC technology is a digital certification and distributed database technology that can be applied in any scenario where digital proof is required.”

Neo also plans to integrate its domain name service as part of the Jiuquan chain. All of China’s BSNs chains including the Jiuquan Chain will use the Chinese yuan in all of the transactions including gas fees.

Neo and China’s BSN have been partners since July 2020. All the details of the BSN DDC’s and Jiuquan Chain will be announced at the BSN DDC’s official launch in Nanjing, China, in March 2022.

What is NEO?

Neo was founded in 2014 by Erik Zhang and Hongfei Da under the name of “Antshares” and then they changed the name to “Neo” in 2017. Neo is an open-source blockchain platform in order to build decentralized applications (dApps).

Nowadays, the platform is migrating to “Neo N3”, which brings new features such as interoperability with other blockchain such as Ethereum.

Neo was the first public smart contract platform founded in China. Back in 2017-2018, it was one of Ethereum’s main competitors. 

NEO is the native token of the Neo network and it is used for staking. GAS token is paid as a reward when you staked NEO.

NEO Price Actions Over the Last 7 Days

NEO is the 59 biggest cryptocurrency by market capitalization with $1.72 billion, according to CoinMarketCap. It is trading at $24.53 and is up 11% in the last 24 hours.

Over the last week, NEO has been oscillating between its support at $20.80 and its resistance around $25. It has been on the rise from its support since Neo’s announcement of Jiuquan Chain’s creation in China, facing its resistance, as you can see below:

The cryptocurrency is still down 87.3% from its all-time high of $194.66 in January 2018.

Let’s see if the new migration features in “Neo N3” and the launch of Jiuquan Chain, serves as a catalyst and gains the same attention as NEO’s late December 2017 in order to surpass its previous all-time high.

China has been monitoring NFTs and Metaverse projects since December 2021. The United Nations last week approved a non-fungible token (NFT) technical framework led by one of China’s largest companies, Tencent.

Based on the latest news, it appears China is taking a different approach when it comes to NFTs.