Just yesterday we covered the story of VeChain and a potential new government partnership alongside PICC, a state led insurance company. This, comes off the back of a crypto clamp down in China, a clamp down that is seeing cryptocurrency totally wiped out of the country.
Now of course, the VeChain x PICC partnership is not one designed to adopt VET, the VeChain token, it is however one designed to adopt the VeChain blockchain. Now it’s pretty clear that whilst China want out of crypto, they do want in on blockchain, so as it stands, not all hope is lost.
The future for crypto in China
As we have stated, China want out, they want rid of cryptocurrency and they want to regain control of digital finances in their country, this however has not always been the case, as a matter of fact in July 2018, the Ministry of Industry and Information Technology released a new cryptocurrency ratings index, a rating that put EOS and Ethereum on top. The rating scores crypto projects based on their technology, their application and their innovation. Because of this, we can see that authorities are keen on some crypto projects, therefore the recent moves in China are somewhat contradictory. At the very least, we know they understand cryptocurrency so their recent bans are no doubt justified by real concerns.
You might be wondering where this is going, however, Sludgefeed have recently uploaded an article that discusses the 5 altcoins that people can turn to in times of government clampdown. China, being the most recent country involved in this seems like a fitting arena. According to Sludgefeed:
“One might consider buying the most popular Chinese cryptocurrencies as equivalent to purchasing shares of the country’s major social media, internet search and e-commerce companies at the turn of the decade. These companies were able to thrive even while U.S. competitors took over the world. Therefore, it is not crazy to think that China is considering a number of blockchain projects to support moving forward, which would undoubtedly boost the underlying value of each project’s digital currency.”
The cryptos recommended by Sludgefeed as as follows; TRX, NEO, VET, ETP and NULS.
TRON is a growing project, it’s recently migrated off the Ethereum blockchain and onto a native TRON blockchain. As China clamp down on crypto there is a chance that the TRON blockchain could still continue to expand in the country, something that would in turn encourage the growth of TRX. According to Sludgefeed:
“TRON is a blockchain infrastructure for a decentralized internet that notably acquired BitTorrent in July. While TRON is easily one of the more divisive projects, as investors either hate it or love it, the team does do an excellent job at marketing itself and pushing products — something that is generally missing in this space.”
The smart contract platform of NEO does have a heavy presence in China. As a matter of fact, NEO has been referred to as the Bitcoin of China and therefore it’s widely assumed that if Chinese authorities do change their mind and look towards crypto adoption, NEO will be the token of choice. This is one to keep an eye on both in and out of China. Though, soon enough we do expect access to NEO and all of the cryptos mentioned in this article to become very difficult to access.
This goes without saying after yesterday’s announcement. The VeChain blockchain has big implications for China and is ever growing. What happens in China will impact the value of VET, though as stated we must remember the recent government partnerships do not aim to adopt VET, instead, this is focused solely on VeChain’s technology.
Metaverse can be compared to Ethereum and NEO. Again, it’s a smart contract platform and therefore has a number of business uses that might seem attractive to companies that are based in China. Metaverse exists on a easy to use and easy to access software, therefore the adoption ot Metaverse technology is a very realistic prospect within China.
This ones a complicated one. In essence, NULS is a modular blockchain application that is simple to customise, it’s built upon very versatile technology. According to Sludgefeed:
“Nuls’ leverages a two-part design that includes microkernels, which provide the underlying mechanisms for the network, and functional modules supported by hot plugging. This ultimately enables modules to be added or removed during an operation, allowing for a cost-efficient and customizable blockchain platform. Nuls was notably added to China’s CCID blockchain ranking last month.”
Important things to note
Okay, these 5 currencies aren’t going to save you from a government clampdown. Moreover, investment should be avoided if it becomes illegal and punishable. This isn’t telling you to invest, this is simply just a guide to help highlight a number of projects that might actually benefit from the clampdown in China and any other future global clampdowns too. Sludgefeed do however conclude on an interesting sentiment, one that refers back to China specifically and refers to a justification as to why these five cryptos have been selected in this report:
“While each altcoin has its positives and negatives, overall the five offer interesting value propositions. This is especially the case amidst the ongoing regulatory uncertainty that has helped fuel sell-offs in the past but recently has had little effect on the larger crypto market. It isn’t all too crazy to assume that the Chinese government is going to pick favorites, and diversifying across some of the top candidates is something to research further.”
Indeed, if Chinese authorities do pick favourites, we can be certain that they will no doubt be from this list, though for now we can only hope.