NEO price dips 7% as Binance ends support for Neo Legacy Network

• The exchange has confirmed plans to halt deposits and withdrawals on Neo Legacy.
• The phase-out will begin on August 25, with a complete shutdown scheduled for October 15.
• NEO has plummeted amidst community uncertainty.

The digital assets landscape endured a bloodbath on Monday as the global crypto market cap plunged 3.27% in the past day to $3.89 trillion.

While most assets reflect bear dominance, NEO suffered the most after Binance confirmed it would end support for Neo Legacy.

Starting August 25, the leading exchange will no longer support asset deposits through the NEO network and will halt withdrawals by October 15.

Moreover, Binance will not credit any deposits made after the deadline.

The announcement magnified NEO’s decline.

The alt lost around 7.62% from $6.5012 to an intraday low of $6.0058.

Affected tokens

The halt decision will impact three key assets: NEO, NeoGas (GAS), and Kepple (QLC).

While GAS and NEO holders can use other Binance-supported platforms to transact, Kepple investors encounter a harsher situation.

The exchange has advised holders to cash out all QLC before the October 15 deadline. The team emphasized:

It is strongly recommended for users holding QLC tokens to withdraw their remaining tokens before 2024-10-15 08:00 (UTC), as transfer of assets will cease after the shutdown.

What prompted Binance’s decision

The leading trading platform is known for delisting projects that do not meet certain standards.

However, Neo Legacy’s case is different.

Binance emphasized that the platform’s transition into a more advanced version, Neo N3, triggered the suspension.

The Neo Legacy team announced the network’s shutdown in April to focus on the advanced platform “designed to replace Neo Legacy.”

The official announcement read:

As part of our commitment to advancing Neo’s technology and focusing our efforts on the future, we have made the decision to sunset the Neo Legacy Network.

Meanwhile, Binance’s notice stirred the markets as it formalized the end of Neo’s older system.

However, the suspension could be a necessary step as handling two active platforms often fragments user activity and liquidity.

Focusing on Neo N3 might form a cleaner ecosystem that can bolster adoption in the coming times.

What’s next for investors

With the deadlines somewhat tight, Neo Legacy users may have to consider three primary things.

Firstly, any deposit completed to Binance via Neo Legacy after August 25 will lead to asset loss.

Secondly, the exchange will suspend withdrawals entirely on October 15.

Lastly, enthusiasts should watch the native token’s performance.

NEO could plummet further to test key price levels as investors seek clarity.

NEO price outlook

The alt exhibits significant bearishness at $6.06.

NEO attempts to recover from earlier losses, but indicators signal sellers’ dominance.

The 3H MACD and RSI confirm that bears control of NEO’s trajectory as they depict waning momentum.

Moreover, the current broad market bias suggests further price dips for NEO.