Conflux obtains research grant of $5M from Shanghai government & STCSM

Conflux obtains research grant of $5M from Shanghai government & STCSM

Conflux has reportedly obtained a research grant of over $5 million from the Changning District government and the Shanghai Science & Technology Committee (STCSM).

According to the Beijing-based blockchain startup’s statement, it has become the only permissionless and public blockchain project backed by the Government of China. The project has been included in the list of 57 high-tech projects supported by the Shanghai government, which include aerospace and 5G technologies. It has also been included in the latest Five-Year Plan or social and economic initiatives to be taken by the government to surge the country’s economy and development in the future.

The recent research grant will be adopted for the development of the public chain’s research. Conflux also has stated that the project will aid the aerospace supply chain that was proposed to be developed on Conflux Network. China has been lending a major focus on building permissioned blockchain as well as public decentralized chains. This is due to the fact that these projects have launched ICOs (initial coin offerings) to raise capital and provide tokens as an alternative means to fiat currencies.

According to Fan Long, Conflux’s co-founder, the company emphasizes the importance of the government’s approval to support public permissionless chains, in addition to the need to obtain a large number of grants. It will also not launch an ICO or become involved in any centralized token sale.

Since 2017, the People’s Bank of China, the central bank of the nation, has banned ICOs & clamped down on the fiat-to-crypto trading.

Conflux has secured $35 million through a private token sale from prominent Chinese investors such as Rong360, Shunwei Capital, Huobi Group, and Sequoia China. Additionally, the Shanghai government also has agreed to help the company open a research institute & incubation center at an undisclosed sum of research funding.

Source credit:

https://www.nasdaq.com/articles/shanghai-government-invests-%245m-in-blockchain-startup-conflux-2021-01-12