What is NEO? Is It More Than Just The Chinese Version of Ethereum? What Makes It Unique?
“Chinese Ethereum” NEO needs to work very hard to defeat its older brother
Flamingo Finance DeFi Token Launched On NEO Blockchain Is An Attempt To Shatter Ethereum Hegemony.
Over-centralization may hinder NEO.
FLM Price Sips 40 +% Since Listing On Binance.
NEO blockchain launches new Flamingo Finance DeFi protocol in an effort to compete with the DeFi boom Decentralized Finance (DeFi) – this is financial services, technology-based blockchain that offer users access to open, effective and … More happening now on Ethereum.
The hype around the decentralized finance (DeFi) segment, now unfolding in the Ethereum ecosystem, haunts other blockchains. Not a week goes by without Ethereum’s competitors trying to infringe on its hegemony in this area..
Flamingos have arrived
Another such attempt to take over some of the liquidity was the launch on September 23 of the Flamingo Finance DeFi protocol, which the BeInCrypto editorial staff had already talked about earlier. It was developed on the basis of the NEO blockchain, also known as “Chinese Ethereum”.
Unlike the original, the “Chinese version” of Ethereum has not been able to reach a wide scale, despite all the efforts of the developers. Accordingly, now no one was surprised by the project’s attempt to adopt such a fashionable phenomenon as DeFi..
It is planned to issue 150 million Flamingo Finance (FLM) NEP-5 tokens, which will be distributed among liquidity providers. Popular crypto exchange Binance added a new token on September 27 As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More in the Binance Launchpool Sandbox Listing.
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According to Flamingo Finance on Twitter, the total amount of funds locked in FLM tokens has now reached $ 1.6 billion, which is equivalent to the value of deposits in four Uniswap ETH pools..
The total value locked participating in Flamincome / Flamingo has surpassed 1.6 billion USD. $ FLM pic.twitter.com/JrMgU8LxEQ
– Flamingo Finance (@FlamingoFinance) September 28, 2020
The crypto community reacted rather ambiguously to the emergence of Flamingo. For example, Cinneamhain Ventures partner and expert in the DeFi industry, Adam Cochran, called the launch of the new token a “vampire attack” on Ethereum. Recall that we have previously talked about the emergence in the DeFi industry of the trend towards “vampire mining”, sucking liquidity from competitors.
Cochran posted a lengthy post on Twitter listing a number of points to watch out for..
Was going to write a piece exploring the risks of $ NEO’s attempted vampire attack on $ ETH so I decided to give it a try.
Forgetting the fact that just last week NEO had a >45 minute outage, my cross chain transaction has been stuck for 5 hours.
– Adam Cochran (@AdamScochran) September 28, 2020
So, he mentioned the technical problems inherent in the NEO network, and cited as an example its recent outage of more than 45 minutes. “My transactions were frozen for 5 hours,” he said. “Why am I willing to pay higher fees on ETH? Because it works … “- added the expert.
Cochran also noted the high level of centralization of Flamingo due to the involvement in the project of two such heavyweights of the cryptoindustry as Binance and OKEx. According to Cochran, 50% of all new token emissions go to NEO, BNB and OKB holders.
In conclusion, he suggested that even if the FLM token manages to take over some of the liquidity, it will still flow back soon, since there is little point in storing your ETH assets on an alternative blockchain, where it is difficult for it to find useful use. Overall, Cochran called the launch of FLM “the most sophisticated attack on ETH”, doomed to complete failure.
Indeed, finding the best profitability could be an obstacle for NEO. Recent situations with SushiSwap and Uniswap have clearly demonstrated that investor money is actively and constantly circulating within the DeFi ecosystem..
As of this writing, the FLM rate is trading in the $ 0.83 region, bouncing back from the September 28 high at $ 1.19. NEO traded at $ 19.90, sipping 23% off September high of $ 26.
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