The co-founder of Mechanism Capital states that the growth prospects for this web3 coin are higher than its competitors in the market.
This is expecting bullish for web3 coin
Filecoin’s native token, FIL, gained more than 86% last week, making it the most profitable asset of the week in CoinMarketCap’s ranking of major cryptocurrencies by capitalization. With this price action, FIL was able to return to $9.25 per token, where it was last traded in early August 2022.
Andrew Kang, a well-known crypto entrepreneur and co-founder of investment firm Mechanism Capital, tried to explain the reason for the surge in interest and the price of the Filecoin token. Kang argues that Filecoin has managed to become a focal point for cash flow from China and recognition by Western audiences, with the project’s big conference on February 25 and the launch of the Filecoin Virtual Machine on March 23 at great timing.
“There is a good chance that FIL will be the XRP or ADA of this era in the crypto market,” the investor said. According to Kriptokoin.com data, FIL is instantly traded at $ 8.57.
Chinese investors and the Filecoin Virtual Machine
Filecoin (FIL) thus became the beneficiary of the Chinese Coins narrative as countries in the Western world sought to tightly regulate the crypto space, while Eastern and Asian states showed greater incentives to invest in new digital economy projects instead.
As for the Filecoin Virtual Machine, or FVM, it is a long-awaited innovation for the project that integrates smart contracts into its network, allowing developers to build fully decentralized applications, making Filecoin a complete Tier-1 blockchain.
Two main catalysts for upcoming ‘Chinese Coins’ enthusiasm
In recent days, more and more experts on Twitter are predicting an upcoming ‘Chinese Coin Pumps’. It is mostly attributed to regulatory easements in Hong Kong and prospects for ‘quantitative expansion’ in China.
It was noticed that the large liquidity injections of the People’s Bank of China (PBoC) coincided with the increase in capitalization in the crypto markets. Also, the announcement of the licensing regime for Virtual Asset Service Providers (VASP) in Hong Kong (can be activated on 1 June 2023) has drawn public attention to ‘Chinese Cryptos’.
While the true extent of ‘printing money’ is yet to be seen, the Hong Kong license will not directly affect retail buyers. Also, the concept of a ‘Chinese’ coin seems very vague. But people do not want to miss the mini-rally and are actively looking for opportunities to take advantage of it.
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