Tokens of Conflux Network (CFX), an Asia-focused blockchain often referred to as the “Chinese Ethereum,” experienced a surge in prices as a result of increased attention from traders after Hong Kong permitted retail investors to trade cryptocurrency. This move is anticipated to attract significant capital from Chinese investors.
Following the announcement on Tuesday, the price of the CFX token initially skyrocketed but gradually receded. CFX reached a peak of 33 cents, up from 29 cents over the weekend, before early investors began taking profits, causing the price to settle at 30 cents as of Wednesday morning.
Conflux Network is a fast and cost-effective blockchain that prides itself on being the only regulatory-compliant public blockchain in China. The platform has engaged in collaborations with renowned global brands and government entities in the region, including McDonald’s China, Oreos, and the city of Shanghai, primarily focusing on blockchain and metaverse initiatives.
In a previous statement, Conflux expressed its intention to partner with China Telecom, the second-largest wireless carrier in China boasting around 390 million subscribers, to develop blockchain-based SIM cards. Despite the surge in token prices and various announcements concerning industry cooperation, on-chain data indicates that transaction volumes have not surpassed the peak levels witnessed last autumn, suggesting that the protocol has yet to establish a substantial user base.
Conflux Network’s CTO, Ming Wu, revealed to CoinDesk in March that the protocol aimed to play a leading role in supporting the expansion of Hong Kong and mainland China in the Web3 domain.
The first BSIM pilot program is scheduled to be launched in Hong Kong later this year, with plans for similar pilots in crucial locations within mainland China, such as Shanghai. These developments have prompted influential members of the Crypto Twitter community to label Conflux as the “Chinese Ethereum,” resulting in a significant increase in its valuation over the past few months.
Since the beginning of this year, Conflux’s market capitalization has surged from $46 million to almost $650 million, establishing CFX as one of the best-performing tokens. Several Asia-focused investors suggest that Conflux’s indirect ties to the Chinese market position CFX as a proxy investment for the broader Asian market.