Top 5 Microcap Chinese Altcoins That Can Generate Massive Returns In Next Bull Rally

In my previous post, I discussed major macroeconomic events that recently triggered the next big crypto narrative.

A narrative is a piece of information (or conjunction of several related pieces of information) that has a very positive effect on related crypto projects.

When Mark Zuckerberg announced Facebook will be renamed to Meta, metaverse-related tokens immediately skyrocketed.

A similar thing happened at the beginning of this year when ChatGPT was launched and tokens utilizing the power of AI soared.

A narrative is essentially a hot topic that drives attention and attracts investors. Sometimes it’s short-lived, but if it’s strong enough, it can turn into a longer trend.

China announcing its $92-billion injection into its economy and the relaxing of its crypto legislation recently had a very positive effect on several Chinese-related tokens.

The prices of these tokens have now retraced, but if Bitcoin continues to post new highs, this China-related trend will likely continue.

In this post, we will go over 5 microcaps (tokens with a market cap under $100 million) that have either Chinese origins, heavy Chinese backing, Chinese teams, or have in the past generated a lot of interest among Chinese investors for some other reason.

1. QuarkChain ($QKC)

QuarkChain is a highly scalable blockchain that uses sharding to become a high-capacity peer-to-peer transactional network. Its goal is to provide a public chain that delivers at least 100,000 transactions per second.

It is solving the Blockchain Trilemma by being massively scalable while remaining secure and decentralized.

It was founded by a former Facebook employee Qi Zhou and has many Chinese investors.

$QKC is QuarkChain’s native token used for mining rewards, gas fees and as a governance token. It has a maximum supply of 10 billion tokens with 64% of tokens in circulation.

It’s current market cap is $76 million. It’s listed on major exchanges such as Binance and KuCoin and has 77K followers on Twitter.

2. SelfKey ($KEY)

SelfKey is a blockchain-based identity platform. Its technology provides individuals, companies, exchanges, startups, and banks with a platform to manage identity data (such as KYC). It aims to allow users to securely store and be in full control over their data, documents, and digital assets.

It’s a futuristic Web 3/Metaverse-related technology where your data is no longer kept by companies and institutions. Instead, you keep it in your digital wallet. They also offer a marketplace that has become available and popular in mainland China.

$KEY is an ERC-20 token and is the utility token of the SelfKey ecosystem used to pay for services inside their marketplace. It’s listed on Binance, Kraken, and KuCoin. Almost 90% of 6 billion tokens are already in circulation.

SelfKey has a current market cap of $65 million and 40k followers on Twitter.

3. Flamingo ($FLM)

Flamingo is a decentralized finance platform based on the Neo blockchain. It allows users to provide liquidity to markets in the form of staking. This means you can lock up your crypto in a special wallet and, in return, you get paid rewards in the form of the Flamingo’s native token, $FLM.

New FLM tokens will be minted until 2039 to provide rewards, which makes this token inflationary. Although the inflation rate is slowing down every month, the constant release of new tokens increases the supply which could potentially lower the price.

It was founded by a Chinese crypto entrepreneur Da Hongfei who is also the creator of the Neo blockchain.

It currently has a market cap of $54 million and is listed on exchanges such as Binance, OKX, and Gate.io. It has 38k followers on Twitter.

4. Linear Finance ($LINA)

Linear Finance is a cross-chain, decentralized protocol, which allows users to cost-effectively and quickly create, trade, and manage synthetic assets.

Let’s break this down.

Synthetic assets (or synths) are tokenized derivates. Derivates are contracts whose value is derived from an underlying asset, such as stocks, currencies, or cryptocurrencies. They allow you to trade assets without actually owning them, and are especially useful for hedging, shorting, and leveraged trading.

Tokenized means that synths create a blockchain record for the relationship between the underlying asset and the purchaser.

Linear Finance essentially allows users to trade synthetic assets quickly and cost-effectively across different chains.

$LINA is Linear Finance’s native token as it’s used as a governance token and for staking rewards. It has a maximum supply of 10 billion tokens about half of which still need to be minted.

Linear Finance is headquartered in Hong Kong, China. It has a current market cap of $59 million and is listed on Binance and KuCoin. It has 65,000 Twitter followers.

5. IRIS Network ($IRIS)

IRISNet is a blockchain project created by a Chinese tech company Bianjie AI.

It is a blockchain infrastructure that serves as a communication relayer for other blockchains and their applications. It essentially provides an interoperability standard to connect different blockchains and enable cross-chain data and token transfers.

Its native token $IRIS is used for delegating and staking, paying for transaction fees, and voting for governance proposals. It has a 4% annual inflation rate and no maximum supply. Periodic token burns are carried out to counteract inflation.

$IRIS is listed on Binance and has a market cap of $52 million. The project has 37,000 followers on Twitter.

Final thoughts

In this post, we went through 5 micro-cap China-related altcoins that could post new highs on the back of positive news coming from East Asia if the Bitcoin rally continues.

Please bear in mind that most of the above tokens have somewhat dubious tokenomics, the major problem being their inflationary nature. This means that new tokens will continue to be minted over the next years, increasing the supply and putting pressure on the price.

With no burning mechanism in place to counterbalance the inflation rate and some strong competitors on the market, most of these projects don’t seem like a good long-term investment.

However, due to the current hype surrounding China and their low market cap, they can post significant gains during the next Bitcoin rally. The way you trade them is to benefit from the pump and take your profits.

Also pay attention to the fact that the Chinese narrative exists in parallel with several other strong crypto narratives of the moment, such as AI, Perpetual DEXs, ZK rollups, and regulation which may dilute its effect.

In a future post, I will cover top Chinese coins with a higher market cap that are more established, less risky projects that I think still have lots of growth potential.

PS: If you want to learn how to make a consistent profit from the Metaverse in 2023 and beyond, check out my free guide How To Make Your First $1000 In The Metaverse.

Join Medium using my referral link and get exclusive access to more stories like this one and to a wide range of quality content from thousands of writers for just $5/month.

Disclaimer: This content is for educational purposes only and should not be considered as financial or any other advice. Always do your own due diligence before investing your hard-earned money.

New to trading? Try crypto trading bots or copy trading on best crypto exchanges