Chinese cryptocurrency investors and blockchain enthusiasts have pumped million dollar investments into mainly Chinese crypto assets. As a result projects like NEO, Tron, VeChain, Ontology, Qtum, Nebulas and Bytom had their market cap increased by 20 up to 100 percent. This bullish price action is mainly the result of the Chinese president, who urged the country to embrace blockchain technology and cryptography.
Chinese investments made NEO, a blockchain for smart contracts, become one of the biggest winners over the weekend. From trading just below 7 dollars last week, it's now worth just over 12 dollars. Bytom did even better, moving from 7 dollar cents to 18 dollar cents.
Without a doubt the Chinese crypto pump is the biggest thing that happened to the cryptocurrency space this year. At the same time hyped the launch of Bakkt and its bitcoin futures hardly had any effect at all. While Facebook's efforts to introduce libra and give its users easy access to a digital stablecoin, has only been met with scepsis by governments in Europe and the United States.
On Thursday last week the Chinese president urged companies and government institutions to start using blockchain technology. President Xi Jinping sees blockchain technology as a core for innovation. According to him the implementation and adoption of blockchain technology is key in the transformation of industries and innovation of technology. He pointed to use-cases in financial business, mass transit and combating poverty.
One day later China approved a new law aimed at cryptography. Commercial endeavors in the field of blockchain and cryptography will need to follow guidelines and regulations imposed by the state. The new law needs to encourage research and development on commercial cryptography technologies in China. They believe that with this in mind a standardized regulatory system will help the blockchain market to grow.
