NEO Founder Demands Resignation, Sparks Governance Crisis

Edgen Crypto

·Jan 26 2026, 05:15

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Key Takeaways

A public dispute between NEO's key founders has erupted, creating significant uncertainty over the project's governance and future direction. Co-founder Erik Zhang is demanding the resignation of ecosystem leader Da Hongfei after his proposals for greater financial transparency were rejected.

NEO co-founder Erik Zhang has publicly demanded the resignation of ecosystem leader Da Hongfei.
The conflict stems from Da Hongfei's rejection of Zhang's demands, including the creation of a financial oversight mechanism and the abandonment of a competing project, EON.
This leadership schism threatens to undermine investor confidence, creating severe risks for the project's governance and token stability.

Founder Conflict Erupts Over Governance and Strategy

NEO co-founder Erik Zhang has publicly called for the resignation of ecosystem leader Da Hongfei, escalating a private dispute into a public crisis for the blockchain project. The demand follows Da Hongfei's rejection of three key proposals from Zhang aimed at improving governance and strategic focus. Zhang had requested the establishment of a formal financial oversight mechanism, the termination of the competing EON project which he views as a distraction, and access to NEO's official communication channels.

Leadership Rift Risks Investor Confidence

The public power struggle between two of NEO's most prominent figures introduces severe uncertainty for investors and the project's community. The rejection of a financial oversight system, in particular, raises red flags about transparency and accountability within the NEO ecosystem. This internal conflict could undermine confidence in the project's leadership, potentially leading to development delays, a community split, and downward pressure on the NEO token's value as market participants reassess the project's long-term viability.