As markets try to recover from another wave of panic-driven selling, some actors can make money and the audience “when there’s blood in the streets”
Alibaba bans mining rig ads; CoinGecko, CoinMarketCap and TradingView blacklisted by “Great Chinese Firewall”; Binance and Huobi closed Chinese accounts. Here’s who might win billions from this Orwellian drama.
America should not miss its chance
Every time Chinese authorities announce yet another anti-crypto witch hunt, the United States is declared to be among the most obvious beneficiaries of this scenario. In May 2021, when China banned cryptocurrency mining, America was chosen, among other countries, as the most obvious destination for exiled miners.
However, in these predictions, the United States is mentioned along with exotic locations such as Kazakhstan, Pakistan and Africa.
Nowadays, politicians and industry experts, including Senator Pat Toomey, CEO of Circle Inc. Jeremy Allaire, and Anthony Pompliano of Morgan Creek Digital, describe this attack as an ‘opportunity’ for the United States.
Senator Tommy emphasized that the United States could project its “structural advantage” over the Chinese authoritarian regime to total control while trying to crack down on the internet and free cryptocurrency.
Another incentive for DeFi
To comply with the latest regulatory requirements, more and more major central exchanges have stopped offering their services to Chinese accounts. In recent days, Huobi has banned Chinese traders from using the exchange, while Binance has suspended new registrations from mainland China.
As such, many crypto enthusiasts will migrate to decentralized exchanges such as 1Inch, dYdX, and Uniswap.
In the past 24 hours, dYdX trading volume has surged nearly 50% and crossed $11 billion for the first time, while Curve Finance DeFi has seen a 127% increase overnight, according to CoinMarketCap data.
Telegram welcomes refugees
As China restricts all companies from providing services to cryptocurrency users, the largest Chinese social media platforms Weibo and WeChat are also subject to these strict restrictions.
This is the reason why cryptocurrency enthusiasts are leaving these platforms in favor of Telegram messenger.
Chinese crypto investors dissolve WeChat groups and join the Telegram community.
– Wu Blockchain September 27, 2021
Chinese journalist and director Colin Wu also adds that this “migration” is proactive as no media services have shared plans to shut down crypto-focused groups and chats.
