- Blockchain startup Conflux has risen by more than 881% in the last three months.
- Backed by the likes of Huobi and Sequoia Capital, Conflux aims to bring decentralized finance (DeFi) to China.
- The project prides itself on being the only Chinese government-endorsed “public, permissionless” blockchain.
- The Shanghai-backed project debuted on the crypto exchange Binance on Monday, March 29, 2021.
While the spotlight has been on Bitcoin as it crossed the $60k mark, lesser-known cryptos like Conflux (CFX) have raked in greater price increases, percentage-wise, than the leading cryptocurrency.
The blockchain project Conflux, known as the largest public chain in China, has debuted on the leading crypto exchange, Binance. The listing was announced on Monday, March 29, 2021.
CFX listed on Binance on the back of a meteoric 881% rise over the last three months. The token’s price has risen from a 90-day low of $0.113 to a new all-time high of $1.70 on March 27 – talk about mooning!
Regardless of its meteoric rise over the last three months, Conflux (CFX) currently trades at $1.25, following a steep drop over the past few days. The current supply of 729,134,257 CFX will be the fixed supply of the token.
What Is Conflux?
Conflux is a blockchain startup backed by the city of Shanghai. It announced on Wednesday that it has formed a strategic partnership with the cryptocurrency exchange OKEx’s decentralized public blockchain.
The project prides itself on being the only “public, permissionless” blockchain that is endorsed by the Chinese government. It has also received backing from the likes of Sequoia Capital and Huobi.
In January, Conflux received a research grant worth over $5 million from the Shanghai Science and Technology Committee and Xuhui district government, which is part of Shanghai’s municipal government.
On the Flipside
- While the Conflux Network hopes to bring decentralized finance into China, its impact may be limited as the country has long taken a centralized stance toward cryptos.
- In a recent article, Yao Qian, a director at the China Securities Regulatory Commission (CSRC), outlined the possible approach to be adopted by China in its quest for the digital yuan.
- The method will be a top-down approach, with the central bank issuing a fixed amount of the CBDC to payment providers who will pass it on to the consumer.
The Conflux Network has announced that it aims to introduce the DeFi revolution in China, regardless of the blanket ban on crypto trading and exchanges in the country.
Conflux and OKEx, through their partnership, will jointly invest in resources that will foster the mass adoption of decentralization in products and management in China.
In addition, both parties will work together to expand their influence in the blockchain ecosystem both individually and collectively. Their aim is to advance healthy and sustainable development in the ecosystem while leaving the door open for collaboration with other projects across borders.
Conflux to Operate in China Regardless of Ban?
A problem in sight for Conflux could be China’s ban on cryptos. However, Conflux has clarified the situation.
Speaking on the partnership, Jay Hao, CEO of OKEx, told CoinDesk through a representative;
It’s very encouraging to see such high-quality blockchain projects like Conflux Network that are committed to transparency, decentralization, interoperability, and regulatory compliance partnering with OKExChain. These are the qualities that will enable strong and sustainable growth moving forward and attract developer talent from the wider ecosystem.
According to Conflux, although initial coin offerings (ICOs) and fiat-to-crypto trading have been banned in China, crypto-to-crypto trading is not banned, making their operation possible.