Could China’s sentiment on crypto be a wave? The move from Tencent Cloud this week is certainly suggestive. An unexpected investment in web3-related tools will come to the market from the Tencent Cloud team, the position of the Chinese technology company along with the ranks of other global technology companies to make new steps in web3, such as Google and Amazon.
The tech conglomerate’s new Web3 investment will also include a suite of new crypto-native partnerships.
Renewed Crypto Optimism in the East
Long-time crypto watchers are no strangers to the ‘China narrative’ that has often fueled short-term price movements over the past year. ‘China bans Bitcoin’ has effectively become a meme in the early years of crypto, but could it be a wave? Just this week, our team has covered potential changes in sentiment from Chinese leaders, as well as efforts in Hong Kong to allow direct investment into digital assets — a move Beijing officials have so far approved.
It is a relatively unexpected change of tide from a traditional perspective; in the west, the US is signaling increased regulatory efforts around crypto. As we cover this week’s report, “local digital currency business operators [in China]… suspect that Beijing intends to use Hong Kong as a channel to access crypto transactions.
This narrative will be supported by Tencent Cloud’s latest announcement this week. In a PR announcement released on Wednesday, Tencent Cloud shared a new suite of crypto-native partners, as well as a new slate of Web3-based initiatives. These initiatives include things like blockchain-based APIs, ‘metaverse-in-a-box’ offerings, and more. The announcement comes on the heels of the first really Web3 summit, the Tencent Cloud Web3 Builds Today in Singapore.
Tencent (OTC:TCEHY) is bolstering efforts in Web3 via it's Cloud division. | Source: OTC:TCEHY on TradingView.com
Tencent Cloud’s New Crypto-Native Partnership
Tencent Cloud will cooperate with a selected group of crypto characters to achieve their goals, including Ankr, Avalanche, Scroll and Sui. Let’s take a quick look at how each partner will add value to Tencent’s new service:
- ink: As an infrastructure provider, Ankr will work with Tencent Cloud to “jointly develop a full suite of blockchain API services that provide a high-performance distributed and decentralized RPC network.”
- Landslide: Builders should be advised, Avalanche will work with Tencent Cloud to build scalable solutions for developers. According to the release, “Avalanche’s fully synchronized full nodes have been set up on Tencent Cloud, and will enable efficient and fast node setup for developers.”
- Scroll: Rollup is working on building an open-source EVM-compatible zk-Rollup, and both will work on scaling solutions.
- Sue: This little-known Layer-1 blockchain will focus on optimizing high-performance games, and increasing the infrastructure needs of developers in dedicated Web3 games.
In a statement included in the press release, SVP at Tencent Cloud International Poshu Yeung stated:
“At Tencent Cloud, we will see the future with Web3, the new iteration of the internet that guides the concept of ‘Immersive Convergence’ where the physical and digital economy meet and merge. With more businesses now looking to explore and adapt to an efficient and transparent digital future, we are ready to use our years of technical experience in the fields of games, audio, and video to provide strong technical support for Web3, and work with the industry. partners to create more immersive experiences and foster a better Web3 ecosystem.