Conflux (CFX) prices are flying high after the network announced last week that it is teaming up with China Telecom to roll out Blockchain SIM (BSIM) cards.
At the time of writing, CFX has ballooned by 310% in the last seven days, data from Coingecko shows. At the end of 24 hours, only the token notched a 32% gain, edging out above the other 100 coins.
The Conflux network lives up to its moniker, “China’s Polygon (MATIC),” which is synonymous with connections with big companies.
Conflux confirmed on January 24th that it has integrated Little Red Book, the Chinese equivalent of Instagram’s photo and video sharing app. Since then, the relationship has been very beneficial for the strong bullish rise in the Chinese cryptocurrency.
CFX Trading Volume Soars
Less than a week after the announcement, CFX trading volume on all exchanges exploded 373% to about $58 million, data from CoinMarketCap shows.
According to the press release, the collaboration will allow 200 million users of Little Red Book to share non-fungible tokens (NFT) produced in Conflux on their personal pages.
Conflux Network originates from the Tsinghua University research laboratory of Turing Award winner Dr. Andrew Yao.
Conflux was founded by the brightest minds from Tsinghua University and the University of Toronto. It aims to improve 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” problem.
Is China Ready to Embrace Crypto?
China’s position on cryptocurrencies has fluctuated and changed over time. In principle, the Chinese government has demonstrated its readiness to use blockchain technology, while being wary of the use of cryptocurrencies and the expected implications in the nation’s economic security.
The Chinese government is stepping up its crackdown on cryptocurrency activities in May 2021, with the State Council announcing a blanket ban on cryptocurrency mining and trading.
The government cited financial 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 threats to financial stability and social order.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
Major Partnerships
Meanwhile, China Telecom plans to start BSIM’s first test program with Conflux in Hong Kong later this year. This will be followed by an experimental program in several regions of China, including Shanghai.
As the first public blockchain in China to comply with regulatory standards, Conflux provides a distinct edge to growing projects across Asia.
Conflux has been involved in 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.
-Image from Coinkolik.com