The price of Conflux (CFX) is flying high after the network announced last week that it is joining forces with China Telecom to roll out Blockchain SIM (BSIM) cards.
At the time of writing, CFX has ballooned to a commanding 310% in the last seven days, data from Coingecko shows. In the last 24 hours, alone the token notched a 32% gain, edging out other top 100 coins.
The Conflux network lives true to its moniker, “China’s Polygon (MATIC),” which is synonymous with connections with big-name enterprises.
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 beneficial for the Chinese cryptocurrency’s robust bullish ascension.
CFX Trading Volume Soars
Less than a week after the announcement, CFX trading volume on all exchanges exploded by 373% to approximately $58 million, data from CoinMarketCap shows.
According to a press release, the collaboration would enable Little Red Book’s 200 million users to show non-fungible tokens (NFT) produced on Conflux on their personal page.
Conflux Network originates 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. Its purpose is to promote cross-border interaction 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” issue.
Is China Ready To Embrace Crypto?
China’s position on cryptocurrencies has fluctuated and changed over time. In principle, the Chinese government has demonstrated a readiness to utilize blockchain technology, while being wary of the use of cryptocurrencies and their expected implications on the nation’s economic security.
The Chinese government strengthened its assault on cryptocurrency activities in May 2021, with the State Council declaring a blanket prohibition on cryptocurrency mining and trade.
The government cited financial hazards, energy usage, and criminal activity as the reasons for the prohibition.
Generally, China’s approach on 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
China Telecom, meanwhile, plans to begin the BSIM’s first test program with Conflux in Hong Kong later this year. This will likely be followed by experimental programs in a number of Chinese regions, including Shanghai.
As the first public blockchain in China that complies with regulatory standards, Conflux provides a distinct edge for projects growing throughout Asia.
Conflux has engaged on blockchain and metaverse efforts with multinational businesses and government agencies in the region, including the city of Shanghai, McDonald’s China, Oreo and other major companies.
-Featured image from Coinkolik.com
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