Can the "emotional bull market" of A-shares spread to the crypto market? An overview of 5 major "China concept" token projects
The flow of encrypted funds into A-shares may continue the trend of "A-share concept coins."Author: Wenser, Odaily Planet Daily
On October 8, the first day after the National Day holiday, the "emotional bull market" of A-shares continued: this morning, A-shares opened with the Shanghai Composite Index rising by 10.13%, the Shenzhen Component Index rising by 12.67%, and the ChiNext Index rising by 18.44%; the A-share securities sector hit the daily limit, and stock index futures also hit the daily limit across the board; the trading volume of the Shanghai and Shenzhen stock markets exceeded 2.5 trillion yuan for the second consecutive trading day; the trading volume of the Shanghai and Shenzhen stock markets exceeded 1 trillion yuan for the fifth consecutive trading day, taking only 20 minutes, setting a new record for the fastest trillion in history; today, the Shanghai Composite Index briefly surged past 3600 points, and ultimately, the total trading volume of the Shanghai and Shenzhen stock markets reached 34,519.39 billion yuan, an increase of 8,589.02 billion yuan compared to the previous day.
At the same time, the ripple effect of the A-share investment boom is gradually transmitting to the crypto market: the USDT C2C price briefly dropped by about 1% this morning, currently reported at 6.9 RMB, while the USDT to RMB exchange rate has fallen below 7, lower than the USD to RMB exchange rate, indicating that some funds in the crypto market have already "escaped" to traditional financial markets like A-shares.
As we mentioned in our previous article "A-shares Break 3300 Points and Stand Tall, Cryptocurrency VS Stock Market 2024 Correlation Node Review": "Due to the limited market size, the already scarce liquidity in cryptocurrencies may further flow back," today's market performance also indirectly supports this point; on the other hand, the emotional bull market in A-shares may drive further increases in related concept tokens, facilitating more funds to "join the edges of this feast."
In light of this, this article provides a brief overview of "China concept" related token projects for crypto readers' reference.
CFX: The Most Authentic "China Concept" Token Project
When it comes to CFX, many people are likely familiar with it, but due to its choice of a challenging path—"domestic public chain," the market tends to view its token as a "China concept coin," and some even jokingly refer to it as an "alternative meme coin." During the previous Hong Kong concept coin boom, CFX was also regarded as one of the representative projects by many overseas crypto KOLs.
It is worth mentioning that Conflux officially announced a strategic cooperation with WSPN at the end of September news, and the two parties will jointly issue the first native stablecoin WUSD in the Conflux ecosystem. According to Conflux co-founder Yuanjie’s previous post: "WUSD will be the first stablecoin natively issued on Conflux and will pave the way for CNH and HKD stablecoins. 1. Support CFX/WUSD trading pairs on Cex and withdrawals to Conflux Espace; 2. Support building WUSD liquidity on the DeFi ecosystem on Conflux; 3. Support using WUSD in the Union Card partner payment system."
As of the time of writing, the price of CFX is around $0.185; the 24-hour trading volume is approximately $50.535 million; and the market cap is around $839 million.
NEO & ONT: "Public Chain Projects by Chinese Teams"
Once upon a time, Chinese teams made significant contributions in the public chain field, with the NEO project being one of the "star projects" at that time (established in 2014, open-sourced on GitHub in June 2015). ONT is also a public chain project created by the same team. According to information, Ontology was created in 2017 by a Chinese company called OnChain, founded by Erik Zhang and Da HongFei. At that time, NEO was a project with a market cap of several billion dollars.
As is often believed in the traditional entrepreneurial field: new projects from successful teams always attract more attention and funding, and ONT is no exception. Although the subsequent story did not go as hoped, it is still regarded as a public chain project founded by a Chinese team, possessing significant "China concept attributes and genes."
Recently, the ONT project has turned its attention to the decentralized identity (DID) field and announced that a DID hackathon with a prize pool of $70,000 has now begun; in April of this year, it announced the launch of a new fund with a scale of $10 million, distributed in ONT and ONG tokens, aimed at accelerating the adoption, education, and development of decentralized identity (DID) solutions.
As of the time of writing, the price of NEO is around $10.25; the 24-hour trading volume is approximately $2.977 million; and the market cap is around $720 million; the price of ONT is around $0.183; the 24-hour trading volume is approximately $1.05 million; and the market cap is around $166 million.
ANKR: "Infrastructure & Dapp by Chinese Teams"
Web3 infrastructure provider Ankr is also a veteran player in the blockchain space. The project was co-founded by Chandler Song and Ryan Fang, first appearing in 2017, and raised nearly $16 million in funding from institutions such as J Lab, DFG, Danhua Capital, Pantera, NEO Global Capital, OK Capital, UpHonest, BlockVC, Node Capital, and LinkVC in 2018.
As a globally recognized node network, Ankr has always been active in the crypto market. According to its official website, the total liquidity TVL currently stands at $83 million; it supports staking for more than 9 types of tokens across chains; it has gained the strong support and deep trust of over 18,000 users; its decentralized physical infrastructure network (DePIN) nodes ensure that clients always have the shortest RPC request round-trip path, with daily RPC requests reaching up to 8 billion; it has over 30 bare-metal nodes distributed in different regions around the world; and it provides up to 760,000 independent geographic location requests per month.
Ankr's latest developments are focused on the BTC ecosystem's L2 network, announcing a partnership with Asphere and Babylon to launch BTC L2 startup services. Through Asphere's BTC L2 solution, any enterprise or developer can now seamlessly launch their Bitcoin Layer 2 with Asphere's end-to-end customization, engineering, and infrastructure.
As of the time of writing, the price of ANKR is around $0.026; the 24-hour trading volume is approximately $1.69 million; and the market cap is around $267 million.
FIL: "Decentralized Storage Infrastructure of China Concept"
When it comes to "China concept tokens," FIL, which previously "trapped" a number of investors, also ranks among them. As an important project in the cryptocurrency infrastructure layer that gained fame due to an article titled "Distributed Storage Opens a Trillion-Level Market, Deeply Promoting Industry Digital Transformation," the decentralized storage network FIL token, which "acts as an incentive layer on top of the IPFS network," once surged to $237 in April 2021 but ultimately fell into the "common script" of most cryptocurrencies—spiral decline.
At its core, FIL and the underlying project Filecoin still cannot compete directly with Web2 providers like AWS, Google Cloud, and Azure, and its application scenarios remain relatively limited.
Recently, FIL token-related developments include its collaboration with the decentralized GPU cloud computing network Aethir, aiming to address GPU scarcity issues by providing GPU leasing services integrated with the Filecoin decentralized storage network to tackle the increasingly severe challenges in AI and Web3. With the continuous development of AI, decentralized storage and cloud services may usher in new opportunities.
As of the time of writing, the price of FIL is around $3.68; the 24-hour trading volume is approximately $19.526 million; and the market cap is around $2.178 billion.
Conclusion: "China Concept" Rises Again, A-share Influence Will Continue
Last year, as Hong Kong made numerous attempts in the cryptocurrency field and gradually opened up market functions such as cryptocurrency trading and Bitcoin and Ethereum spot ETF trading, it sparked a "Hong Kong concept token boom" for a period; now, the continuous rise of A-shares has also, to some extent, fostered the crypto market's eager attitude and sustained attention towards "China concept tokens and related projects."
From the recent price K-line charts of the above tokens, it can be seen that on October 7 and 8, the prices of these tokens have risen to varying degrees, and with a series of favorable policies released by the domestic central bank and regulatory authorities, the attention of investment hot money may continue to increase towards "China concept assets."
As the crypto market and traditional financial markets gradually couple, the transmission effect of A-shares may continue.
