Neo is another platform that was created to host ICOs just like the Ethereum ERC-20. The Chinese platform has hosted a number of crowdsales since Red Pulse launched their startup on the platform last year. The other dozen ICOs were relatively successful but a few were marred by hacker activities which may affect the perception of Neo within the crypto community.
The Apex project is the latest of the Neo hosted ICOs to encounter problems during their crowdsale. Apex had their website hacked and the receiving wallet replaced by that of the hacker. This made investors to contribute more than 1000 neo to the fake wallet belonging to the hacker. On discovery, Apex reacted by taking down the website and posted messages on their social media channels about the hack.
They reposted the correct wallet address on their social media channels and encouraged investors to use the authentic wallet address. To buttress the issue, the image of the Apex CEO holding a paper with the authentic address was posted on all Apex social platforms. Apex also announced that investors who had already paid into the hacker wallet would receive their tokens.
Beside Apex, another Neo based ICO has encountered problems in the past weeks. Key, for instance, was hacked and the token price increased by 300 percent after the sales commenced. The hacker later flooded the Key social media channels with spam posts that made the whole Initial Coin Offering degenerate into a chaotic campaign that had subscribers complaining through it all.
Although, these unfortunate happenstances cannot be blamed on the Neo platform, happening this early with the Neo platform bid to become a major ICO platform will affect the perception companies would have about Neo’s abilities as a secure platform for an ICO launch. The Neo experience which could be described as a setback is reminiscent of the DAO ICO, the then most promising Ethereum ICO that was hacked resulting in an Ethereum hard fork to isolate the stolen Ethers.
Even though Ethereum has recovered from the DAO effect and has become the most popular ICO hosting platform, there is no doubt that the DAO hack was a setback of sorts on the Ethereum platform. Ethereum-hosted startups still encounter problems just as Neo has. An example is the Benebit exit scam that made away with millions of dollars.
Just days ago, Experty, another Ethereum based ICO was hacked. The hacker sent emails to the subscribers giving them incentives for early token purchase even though the crowdsale date was still days away. The Experty hacker made away with $150,000.
Neo should be concerned because as a newer platform, it hosts a smaller number of ICOs than Ethereum does. Companies hosting on the Neo platform having any issues at all would have an adverse effect on the smart contract platform’s chances of gaining the trust of the ICO community, companies and investors alike.
What the Neo platform needs now is more successes for the ICOs they host to encourage new teams to sign up on the Neo platform. Ethereum’s success is predicated on having a number of successful startups launched on the ERC-20.