Dealing with a wide stream of new cryptocurrencies can be a major challenge for novice users. The situation only becomes confusing when a particular currency has multiple local tokens. NEO and GAS are part of the ecosystem. Moreover, you can exchange GAS to NEO on the special online platform. Still, there are minor differences between them.
Every cryptocurrency project needs its own token to change the value. This currency is called so to avoid unnecessary confusion. It transfers value across the network and is the currency with the largest market volume in this ecosystem. Investors and speculators have been cheering this cryptocurrency for months, no matter how successful the project will be in the long run.
There is a certain aspect of this cryptocurrency that users should consider. As the popularity of the network grows, its total resource will increase. So instead, the developers have added a second way to “fund” most of the transactions that go by the GAS name. Cryptocurrency holders automatically generate this secondary token. It incentivizes the individual to maintain their balance for an extended period.
This cryptocurrency is one of the two payment assets used on the platform. In other words, GAS is a child currency of the NEO coin, which has a capitalization of more than $2 billion. It allows the coin to take 7th place in the CoinMarketCap rating. The cryptocurrency has a limited supply of 100,000,000 tokens.
To receive it, you need to keep coins on your wallet balance. Then, you will receive the so-called dividends in the form of GAS for holding it. So, for example, if you have 10 coins on your balance, your annual income in dividends will be about 10%, which you will receive in GAS.
What Is the Next Step for the NEO and GAS Project?
So far, the approach of NEO and GAS seems to be pretty good. Token issuers expect NEO to release ICO tokens, and a significant step forward has been taken. Users will spend more GAS, while current holders will earn more GAS just by holding tokens. It is an interesting way to encourage users not to sell their cryptocurrency.
This concept allows users to interact with the NEO blockchain without spending tokens. The NEO-backed business model has been copied in at least one project. However, an even larger number of cryptocurrencies are unlikely to take the two-token approach.
What Cryptocurrency to Invest in?
The two native tokens are designed for different purposes, and you can buy them on a cryptocurrency exchange. In short:
- NEO is an investment token used to generate new blocks, manage the network, and perform other tasks that require interaction with the rest of the network. As a mature product, it offers high transaction speeds, writing dApps in the most common programming languages, quantum computing stability, a dual-coin system, and much more.
- GAS is the main currency for transactions on the NEO blockchain. NEO cryptocurrency is “shares” that turn users into “shareholders,” and GAS is their cash equivalent, which serves as a means of payment within the Smart Economy.
NEO has a lot to be praised. The project has come a long way. There were big doubts about its success. However, it has established itself as the market leader and continues to gain popularity.
At the same time, many crypto traders are skeptical about it. First, the network is not decentralized. Secondly, it is unclear why the “Chinese blockchain” is needed. Thirdly, half of all coins remain with the founders of the project. Finally, it is unclear what will happen when they start selling it.
So, it is up to you what to choose.