Following the announcement (1) by the network the previous week that it will be collaborating with China Telecom to launch Blockchain SIM (BSIM) cards, the price of Conflux (CFX) has skyrocketed to new heights.
According to data provided by investing.com, as of the time this article was written, Conflux token CFX had skyrocketed to 444% in the last seven days. The token posted a rise of 31.5% in the past 24 hours, outpacing the gains of any of the other top 100 coins.
On January 24, Conflux said that it had adopted Little Red Book, the Chinese app comparable to Instagram in terms of the ability to share photos and videos. Since then, the link has been incredibly helpful for the vigorous bullish ascent of Chinese cryptocurrency.
Conflux Token's Trade Volume Soars
According to data provided by CoinMarketCap, the amount of CFX traded across all exchanges skyrocketed by 373% to around $58 million less than a week after the announcement.
The agreement would allow Little Red Book's 200 million users to display non-fungible tokens (NFT) issued on Conflux on its pages, as said in a press statement.
Conflux Network was conceived in the research lab of Dr. Andrew Yao, a previous recipient of the Turing Prize at Tsinghua University.
The most brilliant students and faculty members from Tsinghua University and the University of Toronto formed Conflux. The development of decentralized open-source technology is intended to facilitate contact across international borders.
As a potential answer to the problem known as the "blockchain trilemma," this cutting-edge research proposes a consensus mechanism that simultaneously improves a blockchain's capacity for scale, security, and decentralization.
China's Stance Towards Crypto
The stance that China has toward virtual currencies has evolved in recent history. In general, the Chinese government has shown that it is willing to use blockchain technology; nevertheless, it is skeptical of cryptocurrencies because of the potential repercussions their use will have on the country's economic security.
In May 2021, the Chinese government ramped up its crackdown on cryptocurrency activity by having the State Council issued a decree that categorically banned both the mining of cryptocurrencies and the trading of cryptocurrencies.
The government justified the ban by pointing to the potential for monetary loss, increased consumption of electricity, and increased levels of criminal activity.
The Chinese government takes a cautious and government-led approach to cryptocurrencies in general. The primary goal is advancing blockchain technology while minimizing potential risks to the country's economic and social order.
Later this year, China Telecom intends to initiate the first test program for the BSIM in conjunction with Conflux in Hong Kong. After this, experimental projects will be carried out in several parts of China, including Shanghai.
Conflux is the first public blockchain in China compliant with regulatory norms, giving it a distinct competitive advantage over other initiatives expanding throughout Asia.
Conflux has collaborated on blockchain and metaverse projects with various organizations in the region, such as the city of Shanghai, McDonald's China, Oreo, and several other significant firms.