NEOPIN Valuation Outlook: The Encryption Masterpiece of South Korean Gaming Giants, Exploring the Optimal Solution of DeFi + CeFi

NEOPIN is a "permissioned DeFi protocol" under the South Korean gaming company Neowiz, which combines the advantages of both CeFi and DeFi. It aims to bridge traditional finance and DeFi protocols for users within a compliant framework.

NEOPIN has been selected for the Innovation Program by the Abu Dhabi Investment Office and is collaborating with local government agencies to develop a DeFi regulatory framework. It is a very rare regulated DeFi service provider that actively embraces regulation to ensure long-term development without restrictions.

NEOPIN is the only DeFi protocol that supports both the Klaytn and Finschia networks, and it is an obvious beneficiary of the Klaytn and Finschia merger event. It may become a DeFi example of the "blockchain merger" concept in the future.

NEOPIN provides DeFi products based on RWA, and entering the RWA market with a compliance framework helps to achieve smooth progress and enjoy the dividends of the explosive growth of the RWA market.

Through comparable analysis valuation, we expect the price of the $NPT token to reach $3.10 to $8.39 USD by the end of 2024, indicating significant upside potential compared to its current token price.

Backed by giants and operating in compliance with regulations in Decentralized Finance, and benefiting from the historic merger of two major public chains, NEOPIN has a great opportunity to gain more community trust in the future wave of blockchain mergers; as a highly inclusive DeFi protocol, NEOPIN's efforts to bring real-world assets onto the chain are more likely to be recognized by users, with the chance to win the loyalty of a wide range of web2 and web3 users.

NEOPIN was established in 2021, and its introduction states, "A one-stop, non-custodial permissioned protocol for the secure use of cryptocurrency within a regulatory framework, combining the advantages of both CeFi and DeFi. Based on a stable security protocol and a regulated environment, NEOPIN aims to bridge traditional finance and DeFi protocols for users."

The parent company of NEOPIN is the renowned South Korean gaming company Neowiz. NEOPIN has currently been selected for the innovation program of the Abu Dhabi Investment Office (ADIO), which operates the sovereign wealth fund of the United Arab Emirates, attracting both direct and indirect investments. NEOPIN is collaborating with the UAE government to develop a DeFi regulatory framework and is expanding services based on this framework globally.

The NEOPIN official website introduces its team members from well-known companies in the web2 and web3 fields such as Binance, Samsung, Neowiz, and Coupang. Through LinkedIn, it can be seen that NEOPIN currently has no fewer than 30 employees, with the main team members primarily from South Korea, which is quite a considerable talent scale among web3 startups.

NEOPIN believes that centralized exchanges represented by CeFi have encountered numerous problems due to unclear management of customer funds and ethical issues, leading to many victims. At the same time, DeFi also faces a series of risks including oracle risks and protocol flaws, resulting in significant disasters. Therefore, NEOPIN has proposed a new concept of "permissioned DeFi."

The permissioned DeFi protocol established by NEOPIN aims to provide a stable, secure, and compliant platform while maintaining high transparency, innovation, and flexibility.

In terms of regulatory compliance, NEOPIN has become the first DeFi protocol to collaborate with the Abu Dhabi Global Market (ADGM) to develop and integrate a regulatory framework.

In terms of the functions of the DeFi protocol itself, the NEOPIN ecosystem also connects various encryption financial services such as P2E, S2E, M2E, and NFT, allowing both users and liquidity providers to benefit from the ecosystem token $NPT.

With the product updates of NEOPIN, the crucial non-custodial wallet NEOPIN Wallet in its ecosystem is hard not to draw our attention.

First of all, it is not just a simple encryption wallet; it represents a comprehensive blockchain ecosystem. This is reflected in its seamless experience offered to users, ranging from basic wallet functions to advanced financial services. Its ecosystem design allows users to explore Decentralized Finance, NFTs, and other blockchain-based innovative products and services, thus not limited to traditional asset management.

More importantly, the design of the NEOPIN App focuses on user experience, with its intuitive interface and straightforward operation process making the management of encryption assets incredibly easy, even for cryptocurrency beginners.

The compliance of NEOPIN is also fully reflected in its wallet application. After creating or importing a wallet, users need to undergo a simple KYC verification. Its good KYC certification process simplifies the identity verification process for users. With simple steps and clear guidance, users can quickly complete the verification and enjoy a wider range of services and features.

What distinguishes NEOPIN from other DeFi protocols in the market? Why does NEOPIN have the potential to shape extremely high user loyalty? We believe that the standout highlights of NEOPIN include at least the following three points:

To understand this, it is necessary to first understand the following background information:

On February 15th of this year, the Klaytn public chain and the Finschia public chain agreed to merge to build Asia's largest Web3 ecosystem, Project Dragon, covering over 250 million Asian wallet users.

Klaytn and Finschia have very strong backgrounds: Klaytn is a public blockchain developed by Ground X, a subsidiary of the South Korean internet giant Kakao.

Kakao Talk is the most loved instant messaging tool among Koreans; Finschia is a public blockchain developed by Line Tech Plus, a subsidiary of the Japanese internet giant Line. Line Messenger is the most loved instant messaging tool among Japanese people.

The merger of the Korean version of WeChat and the Japanese version of WeChat's public blockchain is likely to become a landmark event in the blockchain industry, potentially sparking a "blockchain merger" craze in the future.

In the world of Web3, blockchain "forks" are very common, while blockchain "mergers" are extremely rare. During the hard fork of BCH and BSV in 2017-2018, the blockchain industry experienced a "forking wave," with many projects forcibly creating "community conflicts" and generating a large number of forked coins. But the fact is, these forked coins have mostly fallen into silence.

On the contrary, the "merging" of blockchain is rarely proposed or realized. However, a very obvious truth is that constant splitting will only make the blockchain world increasingly fragmented, with various forces acting independently, project teams repeating the wheel on different public chains, issuing various types of tokens, which makes the already small-scale web3 world assets extremely fragmented.

The concept of blockchain mergers is different: the merger of public chains means the crystallization of community will and the establishment of a higher level of consensus. In addition, from the perspective of traditional finance, "forking" is equivalent to "spinoff," while "merging" is equivalent to "mergers and acquisitions"; in traditional financial markets, the latter occurs far more frequently than the former. Spinoffs usually only bring temporary speculation, while mergers and acquisitions are an important means for companies to grow and strengthen.

Therefore, we firmly believe that the "forks" of blockchain that appeared in large numbers are merely interludes in the development process of the web3 world. In the long run, blockchain "mergers" represent the progress and future of the web3 world.

So, what is the relationship between this merger and NEOPIN?

------Because NEOPIN is the only DeFi protocol that supports both Klaytn and Finschia networks and is a member of the governance committee.

To assist with this historic blockchain merger, NEOPIN has done a lot of preparatory work (for example, NEOPIN launched the first cross-chain bridge between Klaytn and Finschia, supporting bidirectional cross-chain between Klaytn and Finschia).

In such a complex and massive merger project, users utilizing on-chain protocols or holding on-chain assets are bound to encounter many unprecedented issues. As the only DeFi protocol that simultaneously supports both the Klaytn and Finschia networks, NEOPIN draws significant attention from the market. The launch of each new feature is expected to serve as an important example of how DeFi protocols can respond to blockchain mergers.

If NEOPIN performs excellently in this merger, then in more blockchain mergers in the future, NEOPIN, as the first DeFi protocol to take the plunge, will certainly have the opportunity to play a greater role.

In recent years, with the continuous expansion of the encryption market, regulatory agencies in various countries have intensified their investigations and regulatory efforts in the web3 field. An increasing number of projects are being included under regulatory frameworks, which has become a trend. However, issues such as lack of transparency, vulnerability to hacking, and compliance risks are important problems that limit the long-term development of DeFi projects.

NEOPIN, as one of the earliest protocols to propose "permissioned Decentralized Finance", has shown great courage and long-term vision by actively embracing regulation.

Proactively choosing to collaborate with regulatory agencies in the early stages of a project is beneficial for building a cryptocurrency usage platform that not only complies with regulatory frameworks but also fully leverages the advantages of Decentralized Finance and CeFi. Its collaboration with the UAE government to develop a DeFi regulatory framework and expand services based on that framework globally will also place it in a favorable competitive position, while later entrants may have to accept the same regulatory framework and will not pose a threat to pioneers like NEOPIN.

Before using the NEOPIN service, users need to undergo KYC verification, which also prevents illegal funds from flowing into Decentralized Finance protocols, bringing unnecessary trouble to users.

The birth of Web3 is not to create a lawless land; its ultimate goal is to promote innovation in traditional fields in another way. For long-term development, DeFi protocols, which involve large capital flows and high risks, must inevitably integrate into the existing regulatory framework. Therefore, for a DeFi project, only by achieving compliant development can it lay the foundation for long-term healthy growth.

We believe that actively accepting regulation and operating in compliance with the law in the early stages of a project is more beneficial for its survival in the future under stricter regulatory conditions. A good reputation can also help the project attract more new users who are just getting acquainted with web3. Attracting a large number of new users who have not yet been exposed to web3 is a necessary condition for the entire industry to grow.

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