Crypto

The Blockchain Industry is Over-Regulated—Da Hongfei, NEO’s Founder

The founder of NEO, Da Hongfei, has recently made his beliefs as regards the regulation of cryptocurrencies known in a sit down with 8BTC. Hongfei is of the notion that the blockchain and cryptocurrency industry, is over-regulated as it is.

A Sit-Down with the Founder of NEO

Based on his comments from the sit-down, he made it known that the over-regulation of the industry has led to undue restrictions which have led to the downfall of several blockchain based companies. A good example of this is the NEO-blockchain network itself. The price of NEO was above $120 earlier this year, the token price has since then dropped below $20 and it is currently struggling to find support.

As a result of the over-regulation of the industry, Hongfei thinks it is best if the industry starts to shift its attention away from finance and focus more on gaming. With gaming, the need for licensing and regulations becomes almost negligible.

He also explained the reason behind his advice.

He stated that:

” A licensed institute may find it unnecessary to cooperate with a blockchain company because it is already licensed to conduct the business. Why would it bother to be engaged in a partnership that doesn’t benefit it that much? If blockchain companies end up with no license, they won’t be legally permitted to promote massive adoption of applications.”

NEO Shifting Towards Gaming

A recent report also made it known that the interviewer mentioned an NEO-based company called NewEconoLabs.
The interviewer noted that the company had officially sponsored a blockchain game development competition.
Going by his statements and the competition from NewEconoLabs it is quite clear that the network will be shifting towards game development and away from anything finance.

Speaking on the decentralization of the network, Hongfei made it known that NEO is not mined like traditional cryptocurrencies. He also made it clear that the supply of the coin stable. He went further to state that the primary nodes at the backbone of the network are owned and operated by the NEO Council.

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