Neo said it wanted to beat the second-largest blockchain by the market cap when Chinese companies like TikTok and Huawei were taking over the world.
Many people used to think that Chinese tech companies were just copies of their Western counterparts, like eBay and Baidu. More recently, Chinese companies like TikTok and Huawei have become so powerful in the world that U.S. authorities have tried to stop them.
China has a company that wants to take on Ethereum, the second-largest blockchain globally and used by U.S. developers to build semi-automated trading and lending networks called DeFi.
Neo launched a new platform called Flamingo in late September. It took on DeFi with the launch of this new platform. CoinDesk spoke with Da Hongfei, a co-founder of the Neo protocol, and he said that the protocol would one day give users the same features as popular Ethereum-based projects such as Uniswap and Curve Finance.
By the end of a few days, after it was launched, Flamingo had more than $1.6 billion worth of collateral locked into the protocol, according to a tweet from the company’s official Twitter account since the project’s early days were slowed down by “an overwhelming amount of network traffic,” as the company said.
“Copy and paste” is not the only way to make Flamingo, the co-founder said in an interview. It’s like making a new world.
The amount is more than half of the $2.35 billion of crypto collateral locked into Uniswap, the top project on DeFi Pulse.
People who work on the Ethereum blockchain say Flamingo is nothing more than a copycat.
It’s the first objective, large-scale, blockchain-based “vampire” attempt, the founder of the money market protocol Compound tweeted on Sept. 27. He said she tried to “clone and launch” all of the popular DeFi projects on Ethereum at once.
How we think about Ethereum’s network effect and compatibility lock-in will be very different if the project is successful or not, says Leshner.
NEO as Ethereum Killer
Neo is not the first project that has tried to take down Ethereum. It is on the list of “Ethereum Killers.” EOS, Tron, and Algorand are also on the list. One of Neo’s main “selling points” to developers has been. It hasn’t charged any transaction fees since it was born.
People in the U.S. and China are having many problems with each other in terms of geopolitics. There isn’t yet any evidence that the governments of either country are getting involved in the fight for Ethereum’s business. It could be a new front in the technological arms race.
This year, Ethereum’s native token, ether (ETH), has been beating its Chinese rival, Neo’s NEO token, in digital-asset markets, Messari data shows. In 2020, ETH is expected to rise 170 percent, while NEO is expected to increase about 100 percent.
A rare report from state-controlled media in China recently said that cryptocurrencies were the best investment of the year. This regards as a sign that the central government encourages development in space.
Some crypto traders may wonder how much control or oversight Neo will give the Chinese government.
As Da Hongfei says, Neo also works with the Blockchain-based Service Network (BSN), a Chinese state-approved blockchain infrastructure project. Its goal is to attract decentralized international applications (dapps) developers to build their projects on top of it. He says that there is much work going on at Neo, like at any other start-up.
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