CFX crypto tokens at the beginning spiked in price after Hong Kong’s decision on retail investors, which some say could lure financial resources from Chinese investors.
Crypto Tokens of Conflux Network (CFX) – an Asia-focused blockchain tech that some have dubbed the “Chinese Ethereum” – saw a spike in prices earlier amid increased attention from traders after Hong Kong decided to let retail investors trade cryptocurrency, which some say could fuel an influx of financial resources from Chinese investors.
The price of the CFX crypto token at the beginning soared after the notice was created Tuesday, though that rally mostly faded. CFX rose to as high as 33 cents from the weekend’s 29 cents mark, before early buyers likely took profits and pushed prices down to 30 cents as of Wednesday morning.
Conflux is a speedy and cheap blockchain tech that states to be the only regulatory-compliant public blockchain tech in China. In the region, Conflux has collaborated with worldwide brands and Government entities on blockchain tech and metaverse network initiatives, including the city of Shanghai, McDonald’s China and Oreos.
Conflux previously stated it will build blockchain-based SIM cards in partnership with China Telecom, the second- largest wireless carrier in China with an estimated 390 Million subscribers.
Regardless of the price surge, and numerous announcements regarding industry participation, on-chain data shows that transaction counts still haven’t passed highs set last fall, suggesting that the protocol hasn’t built out a sizeable userbase quite yet.
Conflux Network CTO Ming Wu informed CoinDesk in March that the protocol attempted to “take the leading role to assist Hong Kong and mainland China to carry out their expansions in the Web 3.0 area.”
The 1st BSIM pilot program in Hong Kong is expected thereafter in the year, with plans for similar pilots in key mainland China locations such as Shanghai.
Such a backdrop has led prominent Cryptocurrency Twitter community members to begin assigning Conflux the “Chinese Ethereum” label, leading to a brisk boost in valuation in the past plenty of months.
Since the start of in the year, Conflux’s market cap has been growing from $46 Million to nearly $650 Million now – making CFX one of the best-performing tokens.
Several Asia-focused investors suggest Conflux’s indirect links to the Chinese market could position CFX as a proxy bet on the broader Asian market.
“Conflux Network’s partnership with state-backed telecom provider China Telecom is a clear positive tendency signal on the network retaining highly productive ties with influential organizations,” Jeff Mei, chief operating officer of Taiwan-based cryptocurrency exchange BTSE, informed CoinDesk in a Telegram message.
“Plus, today we heard good news from Hong Kong’s SFC that retail cryptocurrency trading will be permitted under regulatory supervision. Although while those regulations are restricted to Bitcoin and Ethereum (ETH) for now, this series of positive tendency news for the Greater China region work highly in Conflux’s favor,” Mei added.