Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
The value of Chinese coins, including NEO and FLM, surged over 20% on the PBoC’s market liquidity inducement.
Chinese coins soared to double-digit gains yesterday following the country’s injection of liquidity into the market. According to reports, the People’s Bank of China (PBoC) recently injected $92 billion into the market through reverse repurchase contracts. This development amounted to a surge in Chinese crypto project prices which could catalyze a new bull run.
With China-based digital currencies like Neo (NEO), Conflux (CFX), and Flamingo (FLM) up over 20%, some industry leaders have weighed in. For instance, crypto entrepreneur and TRON founder Justin Sun touched on the Chinese crypto market’s growth amid other developing news. Sun tweeted:
“As the crypto market continues to mature and mainstream adoption grows, China’s dominance in the space is becoming more and more apparent. With this in mind, I’ve decided to move to Hong Kong to be closer to the action and take advantage of the opportunities in the Asia market.”
Hong Kong to Play Key Role amid Rising Liquidity in Chinese Coins
Sun sees Hong Kong as a suitable hunting ground for crypto development in China and looks to leverage the special administrative city. For instance, he recently played a crucial role in facilitating the application of a crypto license by Huobi in Hong Kong. The Seychelles-based crypto exchange seeks the license to establish a crypto exchange in the region that is “fully compliant with local regulations.” Furthermore, Huobi added that its Hong Kong exchange would offer “a range of trading pairs and services to [the city’s high-net-worth] customers”.
Huobi’s native HT token experienced an 18% surge on the heels of its license application announcement.
A Twitter user also shared a watchlist for Chinese digital currencies last week, seemingly buttressing Hong Kong bull market expectations.
Amid the recent central bank-induced liquidity in Chinese coins, Hong Kong regulators released a consultation paper framework. The city plans to allow its retail sector to trade crypto as part of broader plans to become a crypto hub.
Under Hong Kong’s crypto-focused goals, individual investors would trade larger coins on licensed exchanges. Furthermore, reports also state that the Securities and Futures Commission (SFC) would provide requisite licensing. Although the Hong Kong securities regulator outlined safeguards, it did not specify large-capitalization tokens permissible for retail investor trading.
The SFC plans to allow new crypto retail trading on June 1st after the consultation period ends on March 31st. Meanwhile, Hong Kong Financial Secretary Paul Chan would continue working towards intensifying the region’s pro-crypto stance.
Gemini Co-founder Chips In
“My working thesis at the moment is that the next bull run is going to start in the East. It will be a humbling reminder that crypto is a global asset class and that the West, really the US, always only ever had two options: embrace it or be left behind. It can’t be stopped. That we know.”
Furthermore, Winklevoss added that any government that fails to leverage crypto development and adoption would be “left in the dust”.