Hong Kong is set to introduce new regulations that will enable retail investors to participate in cryptocurrency trading, with licenses for virtual-asset platforms being issued starting from June 1. The move aims to restore Hong Kong’s status as a leading financial center.
Despite concerns regarding its impact on relations with mainland China, the announcement has already generated interest among investors, including Conflux (CFX), often referred to as ‘Chinese Ethereum,’ which could potentially attract a wave of Chinese investors to Hong Kong.
Also Read: Hong Kong’s Crypto Revolution: A New Hub In The Making – Coinpedia Fintech News
Understanding The Conflux Network
Conflux Network, an Asia-focused blockchain platform positioning itself as the sole regulatory-compliant public blockchain in China, has witnessed a surge in its token’s value following the news of Hong Kong allowing ordinary investors to trade cryptocurrencies. Conflux, also known as the “Chinese Ethereum,” has formed partnerships with international brands and government entities for various blockchain and metaverse projects, prompting speculation that the platform may see an influx of funds from Chinese investors.
Tracing CFX Token’s Growth
Immediately after the announcement, the price of Conflux’s token, CFX, experienced an initial surge, although the momentum of the rally subsided. The token’s value rose from 29 cents over the weekend to a peak of 33 cents. Concurrently, Conflux announced a collaboration with China Telecom, the second-largest wireless carrier in China, aimed at developing blockchain-based SIM cards. This partnership aims to leverage Conflux’s technology to provide innovative solutions for mobile connectivity.
Conflux’s Path To A Substantial User Base
Despite the price surge and various cooperation announcements, on-chain data suggests that transaction counts have not yet surpassed the previous highs set last fall. This indicates that the Conflux protocol is still in the process of building a significant user base. In an interview, Ming Wu, the CTO of Conflux Network, expressed aspirations of facilitating the growth of Web3 initiatives in both Hong Kong and mainland China, highlighting the importance of establishing a strong presence in these regions.
Anticipated for later this year, the first BSIM pilot program will be launched in Hong Kong, with additional pilots planned in prominent mainland China locations like Shanghai. This context has contributed to Conflux’s considerable value increase over the past few months. Since the beginning of 2023, Conflux’s market capitalization has risen from $46 million to nearly $650 million, positioning CFX as one of the best-performing tokens in the market. This has led some members of the Crypto Twitter community to dub Conflux the “Chinese Ethereum.”
Conflux’s Connections & Networks
According to Jeff Mei, the COO of BTSE, Conflux Network’s collaboration with China Telecom, a state-backed telecom provider, signifies strong ties with influential organizations. Mei also emphasized the positive impact of Hong Kong’s regulatory approval for retail crypto trading, which aligns with Conflux’s interests in the Greater China region. This suggests that Conflux’s indirect links to the Chinese market position CFX as a proxy bet on the broader Asian market.