While China has been ‘banning’ crypto for years, recent reports indicate that the government is clamping down even further and is set to ban more than 120 offshore cryptocurrency exchanges. Additionally, the country recently pressured its tech giants, Tencent (TCEHY) and Alibaba (BABA), to become more strict on their regulation of crypto-related activity across their products.
Despite all of the bans, the country’s interest in crypto and the underlying blockchain technology is booming. So much so that the Chinese government’s China Electronic Information Industry Development (CCID) department continues to release monthly reports ranking the top blockchain projects by innovation and technological advancement.
While the analogy isn’t perfect, 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.
Given the competitive nature of China on the global scale, it tends to be in their best interest to leverage their control to both prop-up and push forward its major entities. This becomes increasingly interesting with the country’s major cryptocurrencies, especially given the current global trade environment and the ramifications this has on the yuan.
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.
Here are 5 top altcoins that are currently popular in the Chinese market, and stand to gain in the ever-evolving state regulations:
Description: 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. Additionally, TRON’s 2-month-old platform even recently reached roughly 40% of the total daily transactions of the 3-year-old Ethereum network. (more)
AltDex 100 Ranking: 12
Description: NEO is a blockchain platform for smart contracts, often referred to as the “Ethereum of China.” NEO was founded in 2014 and was open sourced on GitHub in June 2015. While NEO’s development community is considered to be significant, some have found fault in the relative centralization of its network and overall lack of transparency. However, NEO is expected to gain a boost when it releases NEO 3.0, a major network update designed to address key technical areas and boost the platform’s transactions per second (TPS), in an effort to address future scaling issues. (more)
AltDex 100 Ranking: 13
Description: VeChain leverages blockchain technologies to solve the problem of counterfeits and product traceability across supply chains and logistics namely in luxury goods, wines, agriculture, automobile, transportation, pharmaceuticals, logistics and audit services. Notably, the project recently entered into a partnership with the People’s Insurance Company of China (PICC), the largest state-owned insurance company in the People’s Republic of China, to bring blockchain technology to the industry. (more)
AltDex 100 Ranking: 16
Description: Metaverse, which launched in February 2017, is similar to Ethereum (ETH) and NEO (NEO) in that it is a smart contract platform, but with an early focus on user-friendly functionality. Digital assets can be simply created and exchanged directly on the Metaverse chain without extensive programming knowledge, and the project has a heavy focus on digital identity, which can be applied to a number business use cases.
AltDex 100 Ranking: 48
Description: Nuls, which launched its mainnet in early July, is an open-source project with a highly customizable modular blockchain infrastructure that supports smart contracts and parallel expansion. 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. (more)
AltDex 100 Ranking: 89
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.
Photo: Scott Brown / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.