Conflux exploded to a 310% rally last week
The price of Conflux (CFX) is flying high after the network announced last week that it is teaming up with China Telecom to roll out Blockchain SIM cards (BSIM).
At the time of writing, CFX has risen over 310% in the past seven days, data from Coingecko shows. In the last 24 hours alone, the token achieved a 32% gain, outpacing other top 100 coins.
The Conflux network lives up to its name, “China’s Polygon (MATIC),” which is synonymous with connections with big businesses.
Conflux confirmed on January 24 that it had incorporated Little Red Book, the Chinese equivalent of photo and video sharing app Instagram. Since then, the relationship has been extremely favorable to the Chinese cryptocurrency’s robust bullish ascent.
CFX trading volume rises
Less than a week after the announcement, CFX trading volume across all exchanges exploded 373% to roughly $58 million, CoinMarketCap data shows.
According to a press release, the collaboration will enable Little Red Book’s 200 million users to display non-fungible tokens (NFT) produced on Conflux on their personal page.
The Conflux Network originated in the Tsinghua University research lab of Turing Award winner Dr. Andrew Yao.
Conflux was founded by the brightest minds from Tsinghua University and the University of Toronto. The purpose is to promote interaction across national borders by building decentralized open source technology.
This innovative study offers a consensus mechanism that optimizes security, scalability and decentralization as a solution to the “blockchain trilemma”.
Is China Ready to Embrace Crypto?
China’s position on cryptocurrencies has fluctuated and changed over time. In principle, the Chinese government has shown a willingness to use blockchain technology, while being wary of the use of cryptocurrencies and their expected implications for the nation’s financial security.
The Chinese government stepped up its crackdown on cryptocurrency activities in May 2021, with the State Council declaring a blanket ban on cryptocurrency mining and trading.
The government cited economic dangers, energy use and criminal activity as reasons for the ban.
In general, China’s approach to cryptocurrencies is cautious and governmental, with an emphasis on developing blockchain technology while avoiding possible threats to financial stability and social order.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
Great partnerships
China Telecom, meanwhile, plans to start BSIM’s first test program with Conflux in Hong Kong later this year. This is likely to be followed by experimental programs in a number of Chinese regions, including Shanghai.
As the first public blockchain in China to comply with regulatory standards, Conflux provides a distinct advantage to projects growing across Asia.
Conflux has engaged in blockchain and metaverse work with multinational enterprises and government agencies in the region, including the city of Shanghai, McDonald’s China, Oreo and other large companies.
– Featured image from Coinkolik.com
