AntShares (recently re-branded as NEO), a relatively new crypto, has been enjoying a meteoric rise in value in the past month, and as such we should explore why NEO has enjoyed its rise in price – closing in on a $1 billion market cap.
Partnerships Fueling the Rise of AntShares
NEO, previously AntShares is a Chinese-run blockchain similar to the Ethereum blockchain. Part of their success is due to their partnerships with some high profile entities such as Microsoft, Alibaba, as well as having support from the Chinese government, which is always a boost to consumers’ confidence when a country’s government gets behind a project.
Antshares has been the first open-source blockchain project developed in China, the first Chinese ICO that raised a significant amount of money, most of which came from outside of China, (6119.53 BTC, over $20m in total) as well as being the first Chinese project to collaborate with Microsoft and Hyperledger.
Apart from Partnerships, what is driving AntShares’ price?
Part of the reason that Antshares is experiencing a rise in its price is due to Ethereum rising in price. Similarly, altcoins that are built using the Bitcoin protocol usually experience the same kind of boost in price.
AntShares (NEO) is only available on 7 exchanges, giving it a sense of scarcity. Furthermore, due to language barriers, and a lack of translations, Western markets are just now learning of NEO, even though it has been live for months, and has been in development since 2014.
Overall, much of the rise of AntShares is due to it only being available on a few exchanges, and that the Western market is just now learning of it. Moreover, their partnerships with Microsoft and other large entities has driven much of the interest in NEO that is driving Western crypto enthusiasts to invest in it. In short, the new interest in this currency/platform from Western markets, sparked in part by partnerships with big business, combined with the small amount of exchanges supporting NEO is driving up demand due to scarcity. The true test will be whether NEO can hold its value when and if it is widely accepted among exchanges.