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On Wednesday, Conflux Network, a decentralized Layer 1 blockchain commonly referred to as the Chinese Ethereum, announced additional investment from DWF Labs, a prominent crypto market maker and Web3 investment firm. However, despite the positive news, the native token of the blockchain, CFX, experienced a decline of over 6%, reaching a value of 21 cents.
DWF Labs, the self-proclaimed regulatory complaint blockchain in China, recently announced on Twitter that they have acquired an additional $18 million worth of CFX tokens. This new investment comes as a follow-up to their initial purchase of $10 million in coins back in March, demonstrating their increased commitment to the cryptocurrency.
"I am more than happy to increase our CFX holdings and support the guys with everything," Andrei Grachev, head of DWF Labs, said in a tweet, referring to Conflux as a "bright example of how a great team, technology, BD, GR and PR should perform."
DWF's rise as a prominent venture capital firm in the cryptocurrency industry has been met with skepticism, as some claim that the company operates more like a market maker than a traditional venture firm.