The surge in Floki (FLOKI) by over 10% on Sunday, accompanied by its highest trading volumes in over three weeks, has drawn significant attention from the crypto community. This increase came as ads for its Valhalla metaverse game were featured in certain Chinese sporting tournaments, which may have attracted speculators, anticipating that the development could bring in new traders from China. Floki developers have also noted a boost in Chinese-based community members joining their social media groups.
Highlighting China in its latest efforts to expand the user base for its Valhalla game, Floki is attempting to capitalize on the nation’s gaming market. With content and technical documents available in both traditional and simplified Chinese, the “China narrative” seems to have captured the attention of some Crypto Twitter users, helping to drive up the prices of Asia-focused tokens, such as Conflux (CFX), in recent weeks.
The relaxed regulations in Hong Kong, set to go live on June 1, will enable traders to invest in certain tokens like bitcoin, ether, and solana on regulated exchanges in the country. Although traders won’t be permitted to hold any stablecoins, this development has fueled speculation that wealthy Chinese investors could soon pour money into the crypto market.
Floki core developer @100bviking continued to emphasize the potential of the Chinese economy in a Twitter message, stating, “While most major economies are expected to slow down this year, the Chinese economy is projected to grow strongly.” With J.P. Morgan projecting a 4% GDP growth for China in 2023 – 2.5 times more than the global economy and 4 times more than the projected US economic growth – this expansion could have substantial implications in the crypto sphere.
Additionally, the Hong Kong legalizing of crypto could act as a signal of China warming up to the technology, increasing the likelihood that it could drive the next crypto bull run. However, it’s essential to remain cautiously optimistic about these developments and assess their long-term impact on the market.
In conclusion, while the recent spike in Floki and increased interest in China-directed tokens can be attributed to the developments in China’s gaming market and upcoming regulatory changes in Hong Kong, the long-term effects of these factors on the broader crypto landscape must be taken into account. Investors are encouraged to keep a watchful eye on these unfolding situations while remaining aware of potential risks associated with market speculation.
Source: Coindesk
