NEOPIN Valuation Outlook: Exploring the Optimal Solution between DeFi and CeFi

NEOPIN is a "licensed DeFi protocol" under the South Korean gaming giant Neowiz, which combines the advantages of both CeFi and DeFi. The protocol aims to build a bridge between traditional finance and DeFi protocols within a compliant framework.

NEOPIN has been selected for the Abu Dhabi Investment Office's Innovation Program and is working with local government agencies to develop a DeFi regulatory framework. It is one of the few DeFi service providers that has obtained regulatory approval, actively embracing regulation to ensure unrestricted long-term development.

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

NEOPIN offers RWA-based DeFi products, and entering the RWA market with a compliant framework helps ensure smooth development and enjoy the rapid growth dividends of the RWA market.

Based on comparable analysis valuation, the price of the $NPT token is expected to reach between $3.10 and $8.39 by the end of the first quarter of 2025, which shows significant upside potential compared to the current price.

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

NEOPIN was established in 2021 and claims to be "a one-stop, non-custodial licensed protocol for the secure use of cryptocurrencies within a regulatory framework, while simultaneously possessing 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 well-known 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. NEOPIN is collaborating with the UAE government to develop a DeFi regulatory framework and is expanding services based on this framework globally.

The NEOPIN team members come from well-known companies. Through LinkedIn, it can be seen that NEOPIN currently has no fewer than 30 employees, and the main team members are mostly from South Korea, which is quite a considerable talent scale in the web3 startup sector.

NEOPIN believes that centralized exchanges represented by CeFi face numerous issues due to unclear management of customer funds and ethical problems, resulting in many victims. Meanwhile, DeFi also encounters a series of risks, including oracle risks and protocol flaws, leading to tremendous 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 collaboratively develop and integrate a regulatory framework with the Abu Dhabi Global Market (ADGM) in the UAE.

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

The non-custodial wallet NEOPIN Wallet, which is crucial to the NEOPIN ecosystem, is not just a simple cryptocurrency wallet; it represents a comprehensive blockchain ecosystem. This is reflected in its seamless experience that offers users everything 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 going beyond traditional asset management.

The design of the NEOPIN App focuses on user experience, with its intuitive interface and simple operation process making it incredibly easy to manage crypto assets, 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 go through a simple KYC verification process. Its user-friendly KYC verification process simplifies the identity verification procedure for users. Through simple steps and clear guidance, users can quickly complete the verification and enjoy a wider range of services and features.

What are the differences between NEOPIN and other DeFi protocols on the market? Why does NEOPIN have the potential to shape a high level of user loyalty? We believe that the highlights of NEOPIN include at least the following three points:

1. NEOPIN is the first DeFi protocol to benefit from the concept of "blockchain merger".

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

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

Kakao Talk is the most popular instant messaging tool among Koreans (equivalent to WeChat in Korea); Finschia is a public blockchain developed by Line Tech Plus, a subsidiary of Japanese internet giant Line. Line Messenger is the most popular instant messaging tool among Japanese people (equivalent to WeChat in Japan).

The merger of the South Korean version of WeChat and the Japanese version of WeChat's public chain could very well become a landmark event in the blockchain industry, potentially triggering a wave of "blockchain mergers" in the future.

It is important to know that in the world of Web3, blockchain "forks" are very common, while blockchain "mergers" are extremely rare. Taking the hard forks of BCH and BSV in 2017-2018 as an opportunity, the blockchain industry experienced a "forking wave," with many project parties forcibly creating "community conflicts" and generating a large number of forked coins (such as Bitcoin Gold BTG, Bitcoin Diamond BCD, etc.). However, it has been proven that these forked coins have mostly fallen into obscurity.

On the contrary, blockchain "merging" is rarely proposed or implemented. However, an obvious truth is that relentless splitting will only make the blockchain world increasingly fragmented, with different factions operating independently, project teams reinventing the wheel on different public chains, and issuing various tokens, resulting in an already small web3 world becoming extremely fragmented in terms of assets.

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

Therefore, we firmly believe that the "forks" that have appeared frequently in the blockchain are merely interludes in the development process of the web3 world; in the long run, the "merges" in blockchain represent the advancement and future of the web3 world.

So, what does this merger have to do with NEO?

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

To assist with this historic blockchain merger, NEOPIN has done a significant amount of preliminary 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 large-scale merger project, users who utilize on-chain protocols or hold on-chain assets are bound to encounter many unprecedented issues. As the only DeFi protocol that simultaneously supports both Klaytn and Finschia networks, NEOPIN is closely watched by the market, and 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 well 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.

2. NEOPIN is the first protocol to propose "permissioned DeFi".

In recent years, with the continuous expansion of the cryptocurrency market, regulatory agencies in various countries have intensified their investigations and regulatory efforts on web3 projects. An increasing number of projects are being brought under regulatory frameworks, which has become an inevitable trend. However, issues such as lack of transparency, susceptibility to hacking, and compliance risks are significant problems that restrict the long-term development of DeFi projects.

NEOPIN, as one of the first protocols to propose "permissioned DeFi", has chosen to actively embrace regulation, which is a very bold and forward-thinking move.

Proactively choosing to cooperate with regulatory authorities in the early stages of a project is conducive to building a cryptocurrency usage platform that aligns with the regulatory framework while fully leveraging 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 also positions it in a favorable competitive position, while later entrants may have to choose to accept the same regulatory framework, unable to pose a threat to pioneers like NEOPIN.

Before using NEOPIN services, 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 a different 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 a solid foundation be laid 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 conducive to its survival under the increasingly stringent regulatory environment in the future. A good reputation can also help the project attract more new users who are just starting to engage with web3, and 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.

3. NEOPIN enters the RWA market with a compliance framework

On March 28 this year, NEOPIN officially announced the launch of RWA-based DeFi products, entering the RWA market.

The RWA (Real World Assets) market is an important link between the on-chain world and the off-chain world. In recent years, the TVL in the RWA sector has achieved several times growth each year, making it a golden track with highly certain growth.

Top global institutions such as BCG predict that the RWA market will develop into a massive market worth trillions, even over ten trillion dollars, in the coming years. Similarly, ONDO Finance, which is compliant in conducting RWA business, has seen its governance token $ONDO grow by over 300% in the past three months.

The NEOPIN BDLP launched by NEOPIN is a multi-revenue liquidity mining protocol based on RWA, allowing users to deposit DAI, USDT, or USDC, while NEOPIN provides users with generous returns using sDAI and USDe (currently with an annual yield between 13% and 30%).

In order to provide each user with the best asset management ratio, NEOPIN has even developed a proprietary AI algorithm that helps users determine how to allocate the ratio between different assets based on their preferences and on-chain data, thereby efficiently investing in complex Decentralized Finance derivatives.

In this process, NEOPIN simplifies the investment process, allowing users to easily explore and invest in various Decentralized Finance options without having to jump between multiple protocols, thereby lowering the user entry barrier.

In the future, compliant RWA products will be the link between the web2 world and the web3 world. Only