Chinese Layer 1 blockchain developer, Conflux, has received a $10 million investment from DWF Labs. The funding will enable the company to continue its operational and user base growth. As part of the deal, DWF Labs acquired Conflux (CFX) tokens from the project reserve and the tokens will be released linearly over the course of time. CFX token price inched up by over 9% in the hours following the announcement.
The latest announcement comes after Conflux inked a major deal with China Telkom, China’s second-largest telco, to develop blockchain-based SIM cards. Conflux will now be able to extend its network of partners and push its R&D forward, thanks to the cash infusion from DWF labs.
Andrei Grachev, managing partner at DWF Labs, has stated that Conflux’s latest cooperation with China Telkom represents a watershed moment for the blockchain industry and proves the revolutionary potential of the company’s technology in the realm of blockchain-driven products and services.
In China, Conflux is the only permissionless blockchain that complies with local regulations. In light of China’sstrict regulatory framework, this gives it an advantage over competing blockchains. The country imposed a ban on mining and trading cryptocurrrencies in September 2021 and has shown little inclination to relax its stance on digital assets.
The investment from DWF labs brings Conflux’s total capital to more than $50 million and will be a great asset to the company as it works to expand its ecosystem. Andrew Chi-Chih Yao, the only Chinese recipient of the Turing Award and currently the chief scientist at Conflux, is one of the co-founders of Conflux. This profile, in addition to its already substantial foothold in the Chinese market, should help catapult Conflux to even greater heights. Other advantages include the network’s high level of security and the fact that it can transact at the rate of 3,000 transactions per second with a confirmation time of just 23 seconds.