Analyst: The ‘Chinese Pump’ Is Coming For These 5 Altcoins!

The “Chinese pump” has become a key narrative in the crypto industry. In particular, some altcoin projects have been on the rise with the influence of China lately.
 Analyst: The ‘Chinese Pump’ Is Coming For These 5 Altcoins!
READING NOW Analyst: The ‘Chinese Pump’ Is Coming For These 5 Altcoins!

The “Chinese pump” has become an important narrative in the cryptocurrency industry. In particular, some altcoins have been on the rise with the influence of China lately. So why? Which altcoin projects should I watch? Here are the comments of the experts…

Why are altcoin projects booming because of China?

Recently, crypto “narratives” have come to the fore for tracking Chinese coins. Experts say this is because the Chinese economy is in the early stages of reopening to the world since late last year after the country’s long, brutal “zero Covid” pandemic policy. To be fair, mining, trading and use of crypto is still prohibited to citizens of the eastern superpower. So, for that reason alone, it was pretty easy for China-based crypto projects to get left behind.

But as the crypto Twitter account “tedtalksmacro” noted in a now widely-quoted and widely-quoted thread, China’s central bank PBoC “injected $92 billion into the market on Friday”, which the U.S. Fed has already launched to mitigate efforts. He stated that he “easily outstripped” the amount of money. As Bloomberg reports, this is the largest ever liquidity injection into China’s economy. Its economy is currently moving 2.2 percent faster than the United States.

What do the experts say?

There are also some influential American crypto “leaders” who seem more than happy to move on to the “global liquidity” thesis when it comes to the crypto market. For example, Cameron Winklevoss, co-founder of Gemini exchange, who believes the next crypto bull run will start in the East. Also, Brian Armstrong, CEO of the largest US crypto exchange Coinbase, pointed to Hong Kong’s obvious move to embrace crypto trading a few days ago. He emphasized that the United States has failed in this respect.

Meanwhile, traders are moving to buy more as the market rises, according to crypto trader Andrew Kang, who argues that all the regulatory FUD (fear, uncertainty and doubt) from the US is creating short selling in the market. He pointed out that the Chinese coin narrative and regulatory fear is different from that of the US. “The more the US takes action against crypto, the stronger the narrative becomes, resulting in more short positions to enter the market that needs to buy back higher,” Kang said.

Which altcoin projects are worth looking at?

Stockhead analyst Rob Badman shared five altcoins to watch out for along with the Chinese narrative.

Filecoin (FIL)

The largest market cap crypto on this list, Filecoin describes itself on its website as “a decentralized data storage marketplace, protocol, and cryptocurrency.” It was originally built by Protocol Labs, a San Francisco-based company, but the token and project have historically been made available to the Chinese market. Like Bitcoin, it is a “PoW” coin. Most of the first Filecoin miners were based in China, so the coin is considered in some respects a “Chinese coin”.

In March, Filecoin will introduce the smart contract feature when it launches its FVM (Filecoin Virtual Machine). Filecoin fans believe that the FVM launch, rather than the Chinese narrative, is the bigger story here, as it will also enable a token burning mechanism that could potentially see FIL becoming a deflationary asset a bit like Ethereum.

Conflux (CFX)

The coin is gaining some traction as it is China’s only publicly traded, regulatory-compliant Blockchain and has been able to form some pretty notable partnerships, including with China Telecom, as we recently reported as Cryptokoin.com. Conflux is a layer-1 chain. It also positions itself as a bridge between East and West, meaning it is truly a protocol that allows users to transact assets across multiple Blockchain networks.

NEO (NEO)

Any crypto speculator who was in 2017’s bull run and 2018’s crash will remember NEO. But China-based and centered NEO is not dead. In fact, it’s been in the top 100 mainstays all this time. According to the analyst, if the bull market is to return with any strength at the end of this year (or more likely in 2024) and the Hong Kong/China narrative somehow continues, NEO has a half chance of picking up where it left off.

VeChain (VET)

Based in China and with a Chinese team, VeChain has earned a reputation as one of the leading blockchain projects in the game of improving supply chain management. Like NEO, VeChain allows holders to earn a separate token in its ecosystem as regular passive rewards. At the time of this writing, VET has increased 35% in the last seven days.

Phoenix Chain (PHB)

Phoenix behind altcoin PHB is essentially an Ethereum-compatible layer 1 Blockchain that empowers businesses to create custom dApps for AI-based users. As per the website’s appearance, AlphaNet has AI-driven trading tool platform. The Wuhan-based project also has some key partners and supporters: Binance, Tencent Cloud, #ashed and NEO are some of them.

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