$CFX Why is it rising so fast?

I've done more research on Bitcoin and didn't pay attention to this altcoin that is experiencing a surge. I noticed it has more than doubled; CFX is notoriously known for harvesting retail investors, and several bull and bear markets have shown this trend, with the only change being that the rise gets weaker over time.

The fundamentals are quite average, specifically targeting retail investors, collaborating with speculative funds to create hype.

This surge is due to the announcement that a renminbi stablecoin will be issued on this public chain. For now, let's assume it's true. This means that RWA and stablecoins on Ethereum will face competition, as the renminbi stablecoin is too large, which could pose a fatal blow to Ethereum's future growth! If this is the case, then long-term holding might be the way to go.

Upon deeper analysis, when Bitcoin is surging and Ethereum is taking off, CFX hasn't followed suit. Instead, it surged due to news, indicating heavy speculation.

Meanwhile, the Hong Kong government plans to issue licenses to stablecoin issuers, but there are currently no confirmations on which companies qualify. It's too early to draw conclusions; I'm just testing the waters with the bank and have not confirmed which public chain will be used. As for whether they can obtain a license, that remains uncertain.

If the Hong Kong government uses CFX, that’s possible. If you understand digital renminbi, you would know that e-CNY's strategic layout for the Belt and Road Initiative has its own blockchain, which is a non-token blockchain. The question is whether to align with the Hong Kong government or the central government; everyone understands this internally.

JD's stablecoin, including Ant Group's stablecoin, will also be affected by policies. China and the U.S. are different; the political system determines that China would rather abandon a decentralized system to ensure absolute leadership and security!

I haven't done extensive research. There are students from BTB investment research in Hong Kong, who are also industry insiders. I spoke with her and shared my insights; it’s a hassle, but when I have time, I’ll follow up on the developments based on my thoughts. There are many public chains in China such as CFX, CBK, NEO, WAN, etc.

If confirmed, I will communicate with them for analysis. If it's speculation, we will jump in to speculate, take a bite, and leave. If it’s an investment, then we hold long.

From my current understanding, CFX is most likely a speculative rise, and it's best to take profits and exit. If your level of understanding is higher or you have a strong conviction, please trade according to your own understanding, and bear the profits and losses yourself.