Conflux is emerging as a captivating blockchain project which boasts an innovative technical architecture that places a strong emphasis on scalability, security and flexibility in smart contracts and it has a flourishing ecosystem of over 100 projects.
However whilst other analysts are seeing Conflux’s alignment with China + Chinese regulations as a strength I see this as a potential for many weaknesses which is why I am extremely cautious to ever invest in projects based inside of China.
Firstly, China are continually changing the goal posts with crypto regulations so while they align with their regulations for now its uncertain to say how long this can last. China has imposed past bans on many crypto platforms which can limit growth + expansion of crypto businesses operating there. Due to regulatory restrictions crypto businesses in China may face challenges in accessing international markets + customers. China has strict capital controls in place, which could affect the movement of funds in and out of the country. Finally Geopolitical tensions between China and other countries could have implications that affect business relationships with international partners + investors. Show Less
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