How much water is there in the Mysterious Oriental Power of China's Concept Coin?

Recently, the mysterious Eastern power has once again caused a stir in the crypto market.

Crypto regulation in the United States has entered a white-hot stage, and Hong Kong has reported that it may allow citizens to participate in cryptocurrency transactions in June this year. "China concept" and "Hong Kong concept" projects have seen a surge. Domestic projects that were once avoided by people in the industry have now become popular. However, there are also doubts in the market. The projects that have risen due to the "China concept" have also fallen from their highs to an astonishing extent. For example, CFX's highest price reached US$1.5 in March 2021. On February 20, after the Hong Kong Securities and Futures Commission released news of consulting on suggestions for regulating virtual asset trading platforms, its highest increase on the 20th reached more than 70%, and the seven-day increase exceeded 4.5 times, but the highest price on the 20th was only one-fifth of the highest point.

Which of these "Chinese concept" projects are truly in line with the spirit of decentralization, have applications, innovations, and are the project owners doing things seriously? Or are they just "compliant" and worth a fortune? Or is it just the fomo sentiment caused by the "mysterious oriental power"?

Golden Finance analyzed the four most popular "Eastern Power" concept coins:

Conflux:

The technical team of the public chain project mainly comes from the "Yao Class" of Tsinghua University. The original goal of the project was to "surpass Ethereum". It is the only compliant public chain project in China. At the end of 2018, it received $35 million in financing from Sequoia, IOSG, Baidu and other institutions. As a public chain project, it mixes Pow and Pos consensus and has cooperated with the Shanghai Municipal Government, McDonald's China, Oreo, Xiaohongshu, etc. Recently, China Telecom announced that it will cooperate with it to pilot the blockchain-enabled SIM card (BSIM) in Hong Kong.

The innovation of this public chain project is that its tree graph consensus algorithm abandons the simple chain structure. It first organizes blocks with a graph structure, and then uses an algorithm to arrange these blocks in a sequence that is unanimously recognized by all consensus nodes.

However, when Conflux competes with other projects internationally, its goal of "surpassing Ethereum" is far from being achieved. As for applications alone, there is no well-known application in the industry that is installed on this public chain. It is proud of its 3000-6000TPS, but the public chain Solana has achieved 60,000+TPS.

However, it is precisely because it is a domestic compliant public chain that it opens a door for domestic enterprises and governments to participate in the construction of Web3. For example, Xiaohongshu has collected NFT displays on the Conflux chain, and users can display their NFTs minted on Conflux in the R-Space section of its digital works function launched last year. At a time when the "China concept" is being hyped, this domestic "compliant" public chain may become the first choice for projects that want to follow the Chinese compliant Web3 path. No matter what, it is at least higher than the "posture level" of domestic alliance chains.

Cocos-BCX:

The purpose of the game public chain is to create a complete multi-platform game operating environment and provide development convenience for blockchain game developers. It is a project invested by many well-known institutions in the industry, such as Binance, SlowMist, and OK. Its team has many years of experience in game development. The team has participated in the development of masterpieces such as "Fishing Master" and "Fantasy Westward Journey". The team has developed a game development engine called Cocos in the web2 game world, with 1.3 million registered developers.

Based on the Cocos-BCX platform, game developers can develop various blockchain games and issue tokens for their own games. COCOS tokens can be exchanged for various game coins and props, and different game coins and props can also be anchored to COCOS for mutual exchange.

After reviewing the team's actions in recent years, we can find that it has incubated Croswap.com, the first decentralized token exchange protocol in the DeFi + NFT mode, but this has little to do with games, and no breakthrough progress has been seen in the game field. After all, the biggest problem in the current blockchain game field is that the game is installed on the blockchain, and its playability is greatly weakened by the performance of the blockchain. Without explosive applications, I wonder what the current value of Cocos-BCX is?

Alchemy Pay:

Crypto payment infrastructure proposes a real-time cross-gateway cryptocurrency and fiat currency hybrid underlying technology solution, allowing users to exchange and settle cryptocurrencies and fiat currencies in real time within the system. Users on both the payment and payment ends can choose to use cryptocurrency/fiat currency as a means of payment or collection. This is also one of the few payment systems in the industry that can automatically connect fiat currency and cryptocurrency in real time.

ACH is a token issued by Alchemy Pay, which is used to incentivize ecosystem, system access consumption and governance. The total amount is 10 billion, of which 51% will be mined through continuous payment and financial ecosystem behaviors after ADPS2.0 is launched.

We can find the difference by comparing the leading payment project XRP with ACH. XRP is mainly used for settlement between banking systems, while ACH is mainly used for payment and settlement in the commercial field. In terms of payment channels, XRP is mainly used for payment on the XRP network, and the payment tool is mainly XRP. Alchemy Pay is a platform that supports both BTC, ETH and other cryptocurrency payments and legal currency payments.

As a hybrid payment platform, it may have a wide range of application scenarios in Hong Kong's compliance process. However, after combing through the historical data of the project, it was found that its project partner Liu Bin had once managed the HCC medical chain and reaped a wave of profits.

SelfKey:

The DID project is actually a platform for managing and using personal identity authentication. The token is the key. The project builds an identity wallet that both individuals and businesses can use to control and manage their personal data and cryptocurrency portfolios. It also enables a concept called "verification request", which allows users to prove that something has been verified by a trusted party without revealing the information itself.

Although DID is a popular track in Web3, it is still in its infancy and its iteration is relatively slow. Because the development of non-financial application projects in Web3 is relatively difficult, no DID system has been able to accumulate a certain network effect.

Summarize:

There are also well-known leaders in various fields such as Filecoin and The Sand Box, which are also "Chinese concept" projects. Due to their wide application and the confirmation of the last round of bull market, they have been tested by the market and will not be used as samples for our analysis here. Among the Chinese projects, there are of course teams that really do things and are developing them, and there are also projects like Conflux that take the "compliant" path and are not so "decentralized", which meet the needs of many teams that want to embrace Web3 under the Chinese regulatory system. The series of new policies of the Hong Kong government are indeed beneficial to the development of Web3 in China. We hope that domestic projects can catch this express train and make up for the time lost due to strict domestic supervision, rather than just repeating the capital game of pulling up and smashing the market.