According to Hongfei, there is little chance for survival of the blockchain in the current system of financial regulations. A licensed institution might not realize the necessity of collaborating with a blockchain firm, as it already has the license to engage in business activities. There is no reason for engaging in cooperation that does not provide many returns. In the event that blockchain firms lose the license, they will not be legally allowed to advertise mass adoption of its applications.
In essence, blockchain can barely survive within the existing financial regulation system. A licensed institute Indeed, NEO, together with a number of other blockchain startups funded via initial coin offerings, provided refunds to the purchasers in attempt to display compliance with Chinese regulations regarding initial coin offerings. One of the offerings affected was, in fact, a token backed be BEO’s blockchain – Red Pulse. Currently, the PHX coin has a market capitalization of approximately 22 million dollars, whereas the value of NEO has been enduring a depression for a long period of time, hovering under 20 USD at current rates.
Hongfei noted the increasing popularity of blockchains in the gaming industry, and pointed that NEO itself has also been selected for blockchain gaming developments. He claimed that the utilization of blockchain in gaming instead of finance displays the results of the regulatory roadblocks. Blockchain can be useful in boh sectors, without a doubt, although Hongfei thinks that games development is rather a nice follow-up to finance regarding the level of impact on society.
Additionally, Hongfei stated that despite the fact that there are numerous public blockchains apart from NEO and Ethereum, most of them lack interesting applications. He did not expressly called for pushing devs in the direction of blockchain innovations, but this message was definitely implied.