Chinese state television CCTV featured cryptocurrencies on the screens last week, despite being banned in the country. Following that, crypto analyst and trader Luke Martin lists in a new Youtube video 5 altcoin projects that the Chinese Government can indirectly pump.
New Chinese regulations could boost these 5 altcoins
The key point outlined in the new regulatory document is that Hong Kong will allow individual investors to buy and sell Bitcoin (BTC) and other altcoins from June 1, 2023. Additionally, Shanghai has reportedly promoted Web3 and long-term investments in crypto projects in recent months.
Crypto analyst and trader Luke Martin then selects Conflux (CFX), Filecoin (FIL), Polkadot (DOT), Huobi Token (HT) and OKB as altcoins to watch over the next few weeks.
Conflux (CFX)
Often referred to as the “Chinese Ethereum,” Conflux stands out as a Layer 1 Blockchain for dApps. In his video, Martin stated that the project, whose market value has increased by 10x since the beginning of the year, has recorded significant growth.
Conflux could benefit from increased adoption and government support as China begins embracing Blockchain technology once again. This will make the project an attractive investment option for individual investors. Partnering with brands like McDonald’s China and OREO adds confidence to the bullish outlook for the project.
Filecoin (FIL)
Filecoin, a decentralized storage blockchain, has emerged as a leader in its niche. Rumors that China would embrace crypto in February prompted retail investors to invest more yuan in the FIL than in ETH and BTC.
China’s recognition of the importance of decentralized storage for protecting national information was the main reason why the analyst was promoted in the FIL. It is also out there that numerous companies have made significant investments in Filecoin over the past few months. Thus, the project gains more credibility and potential.
Polkadot (DOT)
Polkadot, a Layer-1 Blockchain protocol, attracts attention thanks to its strong links with China. According to Martin, Polkadot founder Gavin Wood was involved in Beijing’s whitepaper.
The crypto analyst says that DOT has less potential compared to CFX and FIL. However, the project’s relationship with influential figures and technical capabilities make the altcoin remarkable.
Huobi Token (HT)
Huobi Token occupies a unique position as the native token of China’s largest crypto exchange Huobi. With the exchange’s roots in China, Huobi is efficiently adapting to regulatory changes.
Also, the licensing regime, which primarily covers the most liquid cryptocurrencies such as BTC and ETH, provides an opportunity for Huobi to evolve within the established framework. Martin predicts that the price of HT will rise as individual investors gain access to the altcoin market.
OKX (OCD)
While not headquartered in China, OKX has a significant number of Chinese investors using its platform. This is the main reason why the analyst is bullish on the platform’s native crypto, OKB.
Martin takes into account the current positive performance in the market this year. Thus, he predicts that OKB will not increase in price as much as other altcoins on this list. Still, OKX remains an important exchange for Chinese investors. Also, OKB will be the biggest beneficiary of the potential surge in Chinese retail investor volume.
Not everything is so bull
On the other hand, well-known entrepreneur Bobby Lee is skeptical of recent developments in China. Lee expressed his concerns about Hong Kong’s (HK) long-term crypto commitment, casting doubt on the country’s cryptocurrency ambitions.
The entrepreneur experiences firsthand the devastating effects of regulatory pressures in China. Despite recent developments, he predicts that the country cannot continue to focus on crypto. He warns of Hong Kong’s shaky commitment to the crypto industry.
As quoted by Kriptokoin.com, Lee predicted that in 2021, the price of Bitcoin would reach $ 200,000 by the end of the year.
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