Summary: Following China and Hong Kong's progressive pivot in their regulatory approach toward cryptocurrencies in 2023, investors worldwide have been keen to understand the most promising projects emerging from the blossoming Chinese crypto market. As this industry continues to evolve at a rapid pace, pinpointing the top contenders can be quite an endeavor.
This article presents a detailed breakdown of the five most promising cryptocurrency projects based in China, which investors should keep a close watch on. Our selections are the result of an exhaustive analysis based on their technical robustness, team capabilities, community engagement, level of adoption, liquidity, and overall market performance:
- Conflux (CFX) - Best Overall Chinese Project
- Alchemy Pay (ACH) - Fastest Growing Project
- NEO (NEO) - Chinese Smart Contract Platform
- QTUM (QTUM) - Alternative Smart Contract Platform
- Flamingo Finance (FLM) - Largest DeFi Protocol on NEO
- Fastest growing Chinese Smart Contract platform for DeFi with $18m in value locked.
- Large enterprise partnerships including China Telecom to develop a SIM card.
- Best performing Chinese cryptocurrency in 2023 by price.
Top Chinese Crypto Projects
We've been thoroughly researching the most impactful cryptocurrency initiatives in China, assessing over 15 unique projects shaping the country's digital landscape. We've studied their regulatory compliance, decentralization degree within China's digital policy, array of market-suited applications, user-friendliness for Chinese users, and scalability potential. Following our analysis, we've identified the top five Chinese projects making significant strides in the blockchain and crypto realm.
1. Conflux
At the forefront of China's blockchain revolution stands Conflux, a public and permissionless blockchain platform. Established in 2018 by a formidable team of researchers and engineers from prominent institutions such as the University of Toronto, the University of Waterloo, and the Institute of Computing Technology of the Chinese Academy of Sciences, it is poised as the ultimate trailblazer.
Conflux has achieved a breakthrough in blockchain technology with its innovative Tree-Graph consensus algorithm. This unique system, based on a Directed Acyclic Graph (DAG) structure, provides a fusion of high throughput and low latency, enabling the Conflux blockchain to process a massive number of transactions within a minimal timeframe. One of Conflux's salient features is its robust support for smart contracts. These contracts can be crafted in popular programming languages, including Solidity and Vyper, widening the scope of applications and user accessibility.
2. Alchemy Pay
Alchemy Pay is a decentralized payment gateway and cryptocurrency payment solution that allows businesses to accept cryptocurrency payments from anyone around the world. Although Alchemy Pay is not a Chinese project, it has a significant presence and roots in China. The project was co-founded by John Tan, a Singaporean entrepreneur and blockchain expert, and Molly Zheng, a Chinese technology executive.
Alchemy Pay has also secured partnerships with several other Chinese companies, including Binance, the largest cryptocurrency exchange by trading volume, and QFPay, a Chinese mobile payments provider. These partnerships enable Alchemy Pay to offer its payment solutions to a wide range of merchants and consumers in China and beyond.
3. Neo
NEO, also known as the "Chinese Ethereum", is a public blockchain platform and cryptocurrency that was created in 2014 by a team of Chinese developers. NEO aims to enable the creation of decentralized applications (dApps) and smart contracts on its blockchain, while also offering users a fast and scalable platform for digital asset transfers.
The Neo network has several unique features that distinguish it from other blockchain platforms, such as its use of a Delegated Byzantine Fault Tolerance (dBFT) consensus mechanism, which ensures high levels of security and performance on the network. NEO also supports multiple programming languages, including popular languages such as C#, Java, and Python, making it easier for developers to create dApps and smart contracts.
4. QTUM
QTUM is a decentralized, open-source blockchain platform that combines aspects of Bitcoin's blockchain with Ethereum's smart contract functionality. QTUM has strong roots in China, with several of its co-founders and early contributors coming from China. The platform has also received significant support from the Chinese government and investors.
The project has formed partnerships with several Chinese companies, including Baofeng, a leading Chinese video streaming company, and Qihu 360, a Chinese internet security company. The platform has also been recognized by the Chinese government as a key player in the country's blockchain industry, with QTUM's founder, Patrick Dai, being named as one of Forbes China's "30 Under 30" entrepreneurs in 2018.
5. Flamingo Finance
Flamingo Finance is one of the most promising Chinese-based Decentralized Finance (DeFi) platform that allows users to convert assets, provide liquidity, and earn yield through staking. The platform uses the Chinese Neo N3 blockchain and facilitates automated transactions between different cryptocurrency tokens through the use of smart contracts.
Flamingo Finance was initially launched by Neo Global Development (NGD), which is the execution arm under the Neo Foundation. This underscores Neo's vision of building a Smart Economy, with DeFi playing a critical role in that ecosystem. As a Chinese-based project that leverages the Neo blockchain, Flamingo Finance has gained significant traction in the Chinese market, with support from the Chinese government and investors.
Why is Crypto Growing in China?
Cryptocurrency growth in China is primarily due to favorable digital asset legislation in mainland China and Hong Kong. Beijing's Web3 Innovation and Development White Paper supports this growth, allocating RMB100 million ($14 million) annually for Web3 research. Further support comes from Hong Kong's efforts to become a Web3 leader, which encourages participation from traditional financial institutions. Meanwhile, China continues to favor its own digital currency, the digital yuan, navigating the balance between blockchain adoption and digital currency control. Essentially, government backing and Hong Kong's progressive approach are the main drivers of China's crypto expansion.
Final Thoughts
In conclusion, China's evolving regulatory landscape for cryptocurrencies in 2023 has led to the rise of several promising projects with great potential for global investors. Our detailed analysis of the Chinese crypto market reveals Conflux, Alchemy Pay, NEO, QTUM, and Flamingo Finance as the top contenders to watch. These projects have distinguished themselves through their technical prowess, team capabilities, market performance, and strategic alliances.
The shift in China's stance on cryptocurrencies, propelled by significant government support, presents a fertile ground for these projects to flourish. While this space remains dynamic and complex, the outlined projects offer an intriguing mix of opportunity and innovation for investors keen on the Chinese crypto market.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.
