Welcome to the Staking and Dividend Systematic Review series.
In this series we will analyse different types of cryptocurrencies and their staking/dividend potentials. All posts in this blog will have a similar setup. Every post will begin with this introduction, so feel free to skip ahead if you have already read this. Second, we will describe the cryptocurrency in a brief overview. This will be done by discussing the essential idea behind the coin and the highs, and lows in the past year and all time. Afterwards an analysis on the dividend distribution will be done which will be followed by several examples. Lastly a conclusion will be given to the cryptocurrency combined with my opinion on whether or not you should hold this coin. From this point forward, all rewards will be addressed as dividends, regardless of their origins.
N.B. This blogpost references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Always do your own research.
NEO, formally known as Antshares, is a decentralised application platform which was founded in 2014 by Da HongFei and Erik Zhang. It is a proof-of-stake network which in theory can process 10.000 transactions per second. NEO aims to be a smart economy and the foundation for next-gen internet. NEO has been called the Chinese Ethereum due to similarities in the network and the significant price increase of Antshares. These claims sound very ambitious and only time can tell if NEO will be the foundation for next-gen internet.
The network runs on the GAS token. With this token, users pay the transaction fees to increase their transaction time. GAS is generated roughly every 15 seconds. According to the whitepaper, 8 GAS is generated per generated block. This GAS is then send to all NEO holders on the network.
Past year NEO reached a high of $18.56 and a low of $5.40. The current price is roughly $10. The all time high was nearly $200 and a low of $0.08 during the Antshare phase.
Past year GAS reached a high of $3.45 and a low of $0.62. The current price is roughly $1.75. The all time high was nearly $91.94 and a low of $0.62.
The dividends of NEO are fairly low, especially when compared to newer currencies. Nevertheless, NEO has proved to always payout and the price fluctuations might be less severe when compared to other coins. With a ROI of 2.3% you can expect to earn around 1.3 GAS or $2.30 for every 10(currently $101) NEO.
Example: 5 NEO($50), generates 0.65-0.7 GAS per year. Your profit would roughly be $1.20.
Is it worth it to hold NEO? Honestly, not really. As we have seen in the past, most price movements are connected with each other so it is difficult to find a coin which moves independently. Even when some coins move with less fluctuations, the lowered ROI doesn't make up for this. So NEO is not a HODL if you only want dividends.
Curious to find out which coins are HODLs? Stay tuned for the next blog post. Comment below if you want me to review a coin of your choice.
I aim to publish an article twice a week but bear with me if I miss a post.
Edit: I forgot to specify how you receive GAS. To receive GAS simply HODL NEO on a NEO account. I recommend a personal account but big exchanges such as Binance pay out the GAS rewards.