Prices for Floki went up on Sunday because of a market push led by bitcoin and bets on the token’s “China narrative.”
Floki increased more than 10% on Sunday and had its biggest trading volume in over three weeks. This was because traders bet on the tokens as the Valhalla metaverse game was pushed in China.
The average value of the tokens, which look like the Shiba Inu dog breed, went from $25 million last week to over $60 million this week. The rise is because ads for its Floki game are being shown at some Chinese sports events. Some speculators might have been interested in this because they thought that the move might bring in more buyers from China.
In a tweet, Floki developers said they noticed a lot of Chinese people joining their online communities.
As was reported before, Floki said that its new effort to get more people to play its Valhalla game was aimed at China. Developers said at the time that the game’s material and technical documents would be available in both traditional Chinese and simplified Chinese. They were also made with the Chinese gaming market in mind.
Some people on Crypto Twitter have bought into the “China narrative” in anticipation of looser rules for retail dealing in Hong Kong. This has pushed up the prices of some Asia-focused tokens, like conflux (CFX), in the last few weeks.
From June 1, traders in Hong Kong will be able to buy tokens like bitcoin, ether, and solana on platforms that are regulated by the government. Traders are not allowed to hold any stablecoins, but this has made people think that rich Chinese speculators could soon put a lot of money into the crypto markets.
“While most major economies are expected to slow down this year, the Chinese economy is projected to grow strongly,” said Floki core developer @100bviking in a Twitter message to CoinDesk. “J.P. Morgan projects a 4% GDP growth for China in 2023; that’s 2.5 times more than what is projected for the global economy and 4 times more than projected US economic growth.”
“This strong growth will spill over into crypto, especially with Hong Kong legalizing crypto in a few days’ time which is a sign of China warming up to crypto. There is a very high probability that China will drive the next crypto bull run,” @100bviking added.