DWF Labs, a crypto market maker and Web3 investment firm, has doubled down on its investment in Conflux Network, a permissionless Layer 1 blockchain popularly called the Chinese Ethereum. Despite the news, the blockchain’s native token, CFX, traded in the red, falling over 6% to 21 cents.
Conflux Network announced on Twitter that DWF Labs had purchased $18 million worth of CFX tokens, in addition to its initial purchase of $10 million in coins in March. Andrei Grachev, head of DWF Labs, expressed his support for the blockchain, saying, I am more than happy to increase our CFX holdings and support the guys with everything, referring to Conflux as a bright example of how a great team, technology, BD, GR and PR should perform.
Conflux Network is focused on Web3 development in Hong Kong and mainland China, and is known for its Tree-Graph consensus algorithm, which allows the network to achieve a high transaction throughput (tps), with a capacity of up to 6,000 transactions. CFX tokens facilitate cross-chain transfers, can be used to pay transaction fees within the network, and can be staked to participate in the consensus protocol.
At press time, CFX tokens traded at $0.214, representing a 7% decline on the day, with a market capitalization of $368.7 million. The dour reaction is consistent with the somber mood in the broader market, as Bitcoin (BTC) takes a bull breather above $30,000 and the outlook for alternative cryptocurrencies (altcoins) has deteriorated due to the U.S. Securities and Exchange Commission’s recent lawsuits against Binance and Coinbase.