With the latest $92 billion in liquidity from the People’s Bank of China (PBOC), the Chinese Crypto community is buzzing with calls for a rally led by Chinese coins.
The timing of Hong Kong’s “regulatory overhaul” and shift to pro-crypto stance is no accident. It is impossible to imagine Hong Kong embarking on this path without the support of the Chinese Government. Hong Kong is China’s test ground for crypto development and it will pave the way for the end of the crypto ban in China and thus, greater crypto adoption in the Mainland could take place. go out.
Coming up on June 1, Hong Kong will allow investors to trade cryptocurrencies under new rules.
Therefore, let’s take a look at the top 5 Chinese crypto projects for investment in 2023.
NEO (China’s Ethereum)
Formerly Antshares, NEO (NEO) is a layer-1 blockchain, otherwise known as the “Ethereum of China”, NEO seeks to digitize assets and become an open network for the Smart Economy.
Like Ethereum, NEO offers platforms designed to develop dApps and smart contracts. NEO was founded in 2014 by Da Hongfei and Erick Zhang, of which Hongfei is a well-known figure who has played an important role in blockchain development in China.
Besides partnering with Blockchain-based Services Network (BSN), NEO has also worked together with several major Chinese companies, such as China UnionPay and China Mobile, to accelerate blockchain adoption in China.
The NEO ecosystem has two tokens, NEO is the governance token that gives users voting rights, while users use GAS to pay for transaction fees. There are 100 million NEO, of which 70.5 million are in circulation.
Conflux
Conflux (CFX), is a public, permissionless and regulatory compliant blockchain unique to China. Founded in 2018, Conflux is a layer-1 EVM-compatible blockchain that operates on a hybrid PoW/PoS mechanism.
Conflux has had notable partnerships in China, including China’s version of Instagram, Xiaohongshu and China Telecom.
Xiaohongshu is a lifestyle content platform with over 200 million monthly active users. While China Telecom is China’s second carrier, with more than 390 million users.
CFX holders can use CFX to pay trading fees, earn rewards through staking, and participate in network governance. There are approximately 5 billion CFX tokens, of which more than 2 billion are in circulation.
40% of the tokens are allocated to the eco fund, 36% to the founding team and seed investors, 16% to private investors and reserve funds, and the remaining 8% to the community fund.
The project CTO decided to make a few plans with an urgent proposal to make CFX less inflationary.
VeChain
VeChain (VET) is a proof-of-stake (POA) layer-1 blockchain designed for enterprise-level businesses to better manage their supply chain operations and track the flow of goods from producer to consumer. final consumption.
After the food safety incidents in China, VeChain really has a strong value proposition in enabling product authentication and verification through the use of unique IDs stored on the web. blockchain.
Consumers can verify the origin of the products they buy and feel more secure. VeChain was founded in 2015 by former Chief Information Officer of global luxury brand Louis Vuitton Sunny Lu and Binance founder Changpeng Zhao (aka CZ).
VeChain currently has partnerships with multinational supermarket chain Walmart and fashion clothing company H&M, among other companies, including the Chinese government. They are also looking to expand their potential customer base to include agribusiness, automotive and fashion.
VeChain also uses a two-token system, VET, the main token used to stake and trade on the VeChain network and the secondary token VTHO used to earn rewards and pay network fees.
The VeChain Foundation distributed approximately 133 million tokens to the community through its own marketing, public sales, advertising and marketing campaigns, accounting for over 70% of VET (including burned tokens).
Alchemy Pay
Alchemy Pay (ACH), founded in Singapore in 2018, is a project that seeks to connect the real world to Web 3 with a fiat onramp/offramp and payment platform.
In addition to partners in the crypto space like Binance and Polygon, Alchemy Pay has other notable global partners including Visa, e-commerce giant Shopify, and popular social media app. LINE and even major international banks like HSBC Bank.
Molly Zheng and Shawn Shi are the founders of the project, with decades of experience working in the finance and payments industry. Molly holds senior positions at PayPal China, HSBC China and Mastercard China. Shawn previously held executive positions at many publicly listed companies and was a partner of reputable investment funds.
Alchemy Pay received its Hong Kong Money Service Operator License in Q1 2023. The company is also on track to obtain its Virtual Asset Service Provider license in Hong Kong. Besides being able to pay transaction fees with ACH and serve as rewards in the ecosystem, an interesting use case for ACH includes allowing corporate customers to stake and access services.
ACH has a maximum total supply of 10 billion, 40% of which is allocated to Business and Consumer trading rewards, 38% is given to stakeholders, of which the development team gets 18 % of tokens, 11% for DeFi trading rewards, and the rest of 11% are dedicated to accelerating timely transfers and incentivizing enterprise partners to drive ACH use cases early.
Filecoin
Created in 2017 by Protocol Labs, Filecoin (FIL) is an open source and decentralized platform built on the InterPlanetary File System (IPFS). Filecoin operates on a peer-to-peer network of data storage providers who provide their backup storage to store files on behalf of customers.
Users can securely access their encrypted files at any time and will only pay for the storage they use in Filecoin tokens. Although Filecoin does not have a Chinese founder, the project is very popular among Chinese and most of the companies that are adopting Filecoin are based in China.
The upcoming Filecoin Virtual Machine (FVM) will make the Filecoin network a full-fledged layer-1 blockchain that is expected to introduce smart contract capabilities and bring about fundamental changes such as access control. access files, automate transactions for file storage, and enable data.
Use cases for FIL include using it to pay for transaction fees, collateral for service provision and payment, and block rewards. There are currently about 391 million FILs. More storage means more locked FILs, and higher transaction counts mean more FILs burned. Thus, the FIL is likely to be deflationary.
Conclude
China has not yet given up on cryptocurrencies. Allowing investors in Hong Kong to trade major cryptocurrencies like BTC and ETH is an important step forward.
As China reopens and with record cash being pumped into the economy to provide ample liquidity to support a sustained economic recovery from the pandemic, it’s no surprise that the story of Cryptocurrency projects in China continue to gain popularity as some of this liquidity will inevitably flow into crypto projects.
Hong Kong is China’s testbed for all things crypto and the success of allowing investors to trade crypto in Hong Kong will prove important to China. in taking the next step in lifting the crypto ban on investors in the Mainland.