Barely a week after the NEO Blockchain Foundation announced a $100 million funding; the decentralized project has released new tokens which potentially provides more funds for developing its ecosystem.
According to an update released today by NEO Foundation, the project has successfully unlocked 5,530,000 NEO tokens (approximately $62.5 million), in line with the funding mechanism stated in its whitepaper.
However, the newly released tokens will not be sold on exchanges according to the update. Instead, it will go into the development of the NEO blockchain ecosystem, likely in providing funding support for developers on the network and also in paying for services that the NEO Foundation recommends for the growth of the community.
NEO, as usual, promised to release future updates regarding how the newly released tokens are used to boost projects on the network.
It is essential to note that NEO’s statement about not selling the token on exchanges signifies that only native projects that receive the tokens as funding will likely the right to decide whether to sell it or not. In some cases, the project could decide to keep these tokens and use them to pay for gas used to execute transactions on the network.
NEO Token Market Performance — Bearish
19th-placed NEO just like the rest of the crypto market is seeing a bearish performance in the last 24 hours with prices initially dropping from $11.9 to $10.83. At press time, however, the token’s value is finally charting an upward move with prices back above $11.
NEO token market cap — $737.3 million