Part 1 and Part 2 of this series focused on partnerships and EOY price predictions for VeChain Thor. Part 3 will examine some less well known alt-coins with a lot of upside in the Chinese cryptocurrency market in 2018.
Finding information on smaller Blockchain projects originating in China can be difficult. However, this can work to the advantage of investors prepared to dig in with some research and provides opportunities for identifying lesser known projects with a lot of growth potential.
I believe the best indicators of future success for a cryptocurrency project are the quality of its partnerships/investors and the scale of the value creation from the problem being solved by implementing Blockchain. If a Billion dollar company or a government has invested significant time and money into a project, more so than I could ever hope to, then the risk-reward ratio vastly improves.
For this reason, all of the projects included here have what I believe to be strong partnerships and/or investors, as well as market caps on the lower side, giving room for a share of the potential Trillion Dollar Blockchain market in China. In addition, there’s a clear use case for large scale value creation.
The Matrix AI Network (MAN) is a promising and potentially undervalued project coming out of China. MAN has a price of around $0.70–0.80, with a maximum supply of 250,000,000 coins, giving it a market cap of around $175–200 million (if you include all possible future coins in circulation) edit: recent activity has pushed MAN into the $0.90 — $1.20 range.
Matrix will integrate AI with Blockchain to allow users with a low level of programming ability to create smart contracts that are tested using AI to ensure they don’t contain bugs or loopholes. It also uses a form of mining that solves mathematical problems applicable to the real world — as opposed to problems that merely demonstrate some computer power has been used to solve them.
There are a variety of other benefits being touted such as faster transaction time, scalability, less susceptible to malicious attacks, and flexibility (through the use of adaptive optimization). For a more in depth understanding I would recommend digging into their comprehensive Business White Paper and Technical White Paper.
MATRIX Partnerships and Investors
- The most exciting partnership for MAN is their connection with the Chinese Government One Belt One Road Initiative:
MATRIX’s head of business ecology/partnerships is Executive Projects Expert for the state-owned Belt and Road Research and Development Center. MATRIX are the exclusive blockchain partner and the exclusive AI partner for the center and all blockchain related Belt and Road contracts and projects via the center go to MATRIX.
Although the connection between MAN and the OBOR initiative is mentioned on the MAN Reddit Page and quite a few news articles, there is nothing concrete I could find other than this article in Chinese that apparently shows the MATRIX team meeting with government officials. However, I find it unlikely for such a claim to be made and then not refuted by the Chinese Government if it was not true.
- The Chinese Association for Artificial Intelligence, a state controlled organisation.
- Torque Capital Partners (see below).
- Beijing Cancer Hospital, another government organization.
- Cybernaut, an investment group with over 200BN CNY in managed assets.
This article about the ICO in January goes into a great deal of depth regarding the merits of the project. Please note the ICO has already taken place. I also found this compiled research useful as a relatively detailed overview of the project.
Matrix (MAN) is only available on iDEX at the moment. This exchange is a little more difficult to use and get set up on than some of the other larger exchanges. However, I would consider this a benefit as it is likely to put many potential buyers off, meaning when it is finally released on a larger exchange such as Binance the upside should be greater.
This is not investment advice. Do your own research before making any investments. I have buy orders in place for when MAN drops to $0.90 but am not affiliated in any way with the project.
CPChain (CPC) is a new distributed infrastructure for next generation Internet of Things (IoT). CPChain intends to build a fundamental data platform for IoT system in combination with distributed storage, encryption computation and blockchain technologies, providing the whole process solution from data acquisition, storage, sharing to application.
Nice Moon Why Coin?
CPChain has a current price of around $0.23, a circulating supply of 230 Million coins and total supply of 1 Billion coins. This gives a current market cap of around $52 million (if you only include the circulating coins) to $230 million (if you include all future coins in circulation).
Whilst many projects out there are looking to extract value through use of IoT (internet of things), CPC has partnerships that make me believe they are likely to be successful in taking a share of this market.
- CPChain have Qtum Foundation, Vechain Foundation, Metaverse Foundation, Chainfund and HPB as investors.
QTUM is a Chinese Blockchain company that focuses on providing an improved execution of smart contracts and services that bridge the gap between blockchains and the business world.
QTUM themselves have an impressive array of investors and the QTUM coin is ranked 20 in total market cap at just shy of $2 billion. I also believe QTUM could be a great project to watch, although I haven’t included it in detail here because I want to focus on smaller cap projects.
- Torque Capital Partners is a VC firm specialising in partnering with Blockchain projects of the future. You can find details of the Torque partnership here, along with details of the CPChain team.
- As part of your own research you might want to dive into the following links (below) related to partnerships, or dive into this article from HackerNoon.
Just a reminder, this is not investment advice. Do your own research before making any investments. I own some CPChain but am not affiliated in any way with the project. The Bibox link above is a referral link.
THEKEY (TKY) is another great project flying under the radar. With a current market price of between about $0.027-$0.04 and a maximum future supply of 10 billion coins, giving a market cap in the $270–350 million range (or much lower if you only count the coins in circulation).
THEKEY will partner with the end user (citizens), Government, Social Insurance providers (also the government), Banks, and Healthcare Insurance Providers to use the Blockchain and biometric data to track individuals’ data from disparate sources and confirm their identity.
THEKEY is a decentralized ecosystem of an identity verification tool using national big-data and blockchain. The Project Team is now developing an identification verification (IDV) tool with blockchain…by using Personally Identifiable Information (PII) which is exclusively authorized by government authorities.
The video below (in Chinese) gives the general idea (it’s only 1 minute long).
This article from Cryptocoin gives a fantastic overview of how TKY would work to streamline hospital processes through the pilot program in Jiaxing, China. If you’ve ever received hospital treatment in China you will be well aware of the significant efficiency gains to be made from just this application.
Great Ambition Requires Great Partners
- THEKEY recently announced a partnership with China Unicom, a giant state-owned telecommunications operator with a $39.1 Billion market cap.
In China it is necessary to present an ID Card/Passport in order to activate a sim card, so phones are essentially already acting as identity tracking devices.
Following the announcement on February 14th, TKY jumped from around $0.027 to a peak of $0.04, before meandering back down to around $0.026–0.028. Almost as though nothing had happened!
- TKY also announced partnerships with China Social Insurance Association (CSIA) and Tsinghua Unigroup, during which they signed the Cooperation Agreement for the snappily named Research of Security Supervision Mechanism of Social Security Data Socialization. The Party Committee Secretary (the highest role) of Tsinghua Unigroup is the son of the former Chinese President Hu Jintao.
- China Life Reinsurance Company (ChinaRe), a $75 Billion Insurance company:
- Rexford Ventures, a Venture Capital firm focusing on Blockchain technology, also announced their investment a few days ago. According to their website, other investments include Omisego, Chain Link, CPChain, and Matrix AI Network.
- The CEO of TKY is Catherine Li, who was voted The Most Outstanding Women Entrepreneur in China in 2017 by the All-China Women’s Federation, as well as one of the Top 10 Influential Chinese Women of the Year.
This article also gives a good analysis of the TKY project and partnerships. The Wiki on TKY also gives a succinct overview of relevant details. For a more in depth look you might want to consider downloading the whitepaper and reading the FAQs.
The Key (TKY) is currently only available on KuCoin. Again, when a coin has not yet been listed on a major exchange like Binance this isn’t necessarily a bad thing. Most projects with any substance should eventually migrate to Binance, at which point you can expect a healthy price spike.
This is not investment advice. Do your own research before making any investments. I hold some TKY but am not affiliated in any way with the project.
Part 4 examines why Trinity Network Credit ($TNC) is crucial to the development of the NEO ecosystem, as well as discussing price and market share predictions for EOY 2018 and beyond.
I am always discovering and researching new information about projects I’ve invested in, which I update via Twitter — Such as the recent interview with CEO of TKY and new exchange release rumors for the MAN token.
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Have any other questions? Find a mistake? Disagree with something I’ve written? Write it in the comments and I will get back to you.