A comeback for Neo (NEO)? The cryptocurrency’s price has just jumped in recent days, following the announcement of its addition to China’s state-owned blockchain service BSN.
Neo blockchain integrated into Chinese BSN
As a reminder, the BSN has been around since 2020: it is a blockchain platform supported by the Chinese government. It is a way for the latter to integrate technologies related to smart contracts of public blockchains, in a framework allowing it to apply its own regulations.
NEO had already been partially integrated by the BSN during 2020, but the partnership has just been strengthened. The Blockchain-based Service Network announced two days ago that the Jiuquan blockchain, which is based on NEO, will be one of the ten chains making up the BSN mainnet:
We are thrilled to announce that @Neo_Blockchain will be a framework provider on the BSN DDC!
Now users can digitize and automate asset management through smart contracts provided by NEO.
Guess which blockchain framework will be next? https://t.co/758UyNaY3w
– BSN (@bsnbase) February 15, 2022
“Users can now digitise and automate asset management, using smart contracts provided by NEO. “
The integration allows users to access a market for non-fungible tokens (NFTs), or at least their Chinese equivalent. China refers to these as “digital certificates” rather than NFTs, in order to separate those authorised by the government from those that exist on platforms such as OpenSea.
The integration will also allow users to make use of NEO’s domain name service, which allows for the creation of simplified .neo.
addresses.
NEO’s share price has been climbing for two days
The consequence is that the NEO price has started to rise since the BSN announcement. In just over 48 hours, it has risen by +26%, to exceed $26 again:
NEO price trend since the BSN announcement (Source: TradingView, NEO/USDT)
However, there has been a sharp pullback since last night. And for the moment, the NEO remains far from its historical high. It was indeed close to $200 in January 2018, when the cryptocurrency was generating a lot of enthusiasm. Since then, water has flowed under the bridge, but the integration of a Neo blockchain into the BSN mainnet could continue to boost the project’s image.
In any case, China seems to be doing a good job of balancing its position: it is now fully committed to blockchain, while at the same time banning entire sectors of the cryptocurrency industry, including Bitcoin (BTC) mining. How far will it go
