NEO Leadership Conflict and Market Reactions

Erik Zhang, NEO’s co-founder, has urged Da Hongfei to resign from the foundation following allegations of fund mismanagement in a meeting on January 26, 2026.

This intensifies ongoing tensions affecting NEO’s market stability, with short-term price reactions noted. Zhang’s demands highlight transparency needs in the crypto space.

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Erik Zhang accused Da Hongfei of mismanaging funds and lacking transparency, while Da countered, attributing financial control issues to Zhang. “I proposed three demands: a financial oversight mechanism, to abandon EON, and to authorize my official communications, all of which were rejected by Da Hongfei, leading me to call for his resignation due to NEO’s continuous decline.” source Proposals for improved oversight were rejected, leading to the call for resignation amid NEO’s ongoing challenges.

The leadership dispute has led to short-term fluctuations in NEO’s market value. While the conflict has illuminated financial control concerns within the foundation, immediate effects are uncertain, impacting investor confidence and the broader crypto community’s perception.

Financial implications include potential adjustments in asset allocations and renewed scrutiny of project priorities. The controversy highlights unresolved tensions post-N3 upgrade, potentially influencing industry trust and NEO’s competitive positioning in the crypto landscape.

The discord between Zhang and Da poses potential regulatory challenges and governance scrutiny. Future technological adaptations might be required for reconciliation. Observers anticipate possible financial restructuring or strategic pivots to address foundational stability concerns as historical tensions resurface.

The ongoing leadership conflict could necessitate regulatory oversight and policy revisions. The industry’s focus may shift towards technological solutions that ensure transparency and accountability within crypto-project governance, informed by historical precedent and current market dynamics.