Altcoin speculators often move from one opportunity to the next for quick profits. Two weeks ago, AI coins were the talk of the town, but that ship has seemingly sailed. For reasons unknown, the “Chinese coins” are moving up strongly this week.
What are “Chinese Coins” Anyway?
There has always been an uneasy relationship between China and cryptocurrency. While initially a primary hub for crypto trading activity, the country banned crypto a few years ago. In addition, the government prohibits mining cryptocurrencies, yet local companies can still experiment with the technology. A very curious overall stance, although China remains tied to cryptocurrency regardless.
Things started getting more interesting when Hong Kong legalized crypto trading. That will go into effect on June 1, 2023. As a result, the Chinese coins – currencies developed in China or with a solid Chinese following or partnerships – have gained tremendous value. Assets to consider include Filecoin, NEO, VeChain, Qtum, etc. These are not necessarily the “main” altcoins people invest in for speculative purposes, but they can introduce decent overall returns.
Even so, there is now a narrative regarding these Chinese coins. All crypto markets seem poised for the next leg up, and maximizing one’s trading gains is essential. Several analysts expect the Chinese coins to pump even further until the excitement regarding Hong Kong’s decision cools off. A subsequent pump might materialize once crypto trading becomes legal in the region.
For those unaware, the list above indicates all coins one can classify as “Chinese coins”. That list includes Conflux, SelfKey, Flamingo, QuarkChain, etc. However, it is worth noting many of these projects have sub-$200 million market caps. They also have a relatively low trading volume, and those numbers are inflated due to the current pump-and-dump cycle.
What Is The Next Hype Cycle?
Shifting from artificial intelligence coins to Chinese coins is a normal development in cryptocurrency. As many people now focus on these Chinese assets, the “pumpers” will liquidate their bags and move to the next target. Building hype is part of the game, and signs of the next major cycle may become apparent soon. Meme coins have underperformed strongly so far. A surge for Dogecoin, Shiba Inu, and others isn’t out of the question.
The bigger question is what these Chinese coins amount to. Projects like Filecoin are interesting but far from mainstream adoption. QuarkChain and Qtum have been all but forgotten about, as has NEO. VeChain still has potential for its technology, thanks to a strong ecosystem. However, that may not necessarily result in a higher VET price.
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