The DCo Podcast
January 9, 2026

How China Is Quietly Dominating Crypto | Shuyao Kong

The Hidden Engine of Global Liquidity: Why Chinese Crypto Dominance is Inevitable

by The DCo Podcast

Date: [Insert Date Here]

Quick Insight: This summary is for investors and builders who overlook the East and want to understand the sophisticated machinery driving on-chain volume. You will learn how Chinese retail and research circles dictate market movements before they hit Western feeds.

  • 💡 Why do Chinese builders excel: at operational heavy-lifting compared to Western teams?
  • 💡 How does the "so what" research framework: give Eastern analysts a competitive edge?
  • 💡 Which specific tools are Chinese retail traders: using to dominate Solana markets?

Shuyao Kong reveals the sophisticated layers of a Chinese crypto ecosystem that operates with brutal efficiency despite geographic isolation. While Western markets focus on theory, the East focuses on the operational grind and liquidity flows that actually move the needle.

"[Chinese traders] are literally aping Solana coins all the time and I suspect a lot of the Trump volume comes from China."

Top 3 Ideas

🏗️ The Liquidity Kings

  • Sharp Retail: Chinese traders are aggressively trading Solana assets and political tokens using specialized tools like GMGN. This concentrated activity creates the primary liquidity engine for global on-chain markets.
  • Tooling Superiority: Local traders utilize high-speed interfaces that outpace standard Western wallets. This technical edge allows them to capture profit before the rest of the world notices the trend.
  • Universal Behavior: Retail participants everywhere seek volatility but the Chinese cohort executes with higher precision. Their participation is the oxygen required for any new token to survive.

🏗️ Operational Moats

  • Execution Focus: Success in centralized exchanges like Binance stems from a relentless focus on growth and heavy operational lifting. This creates platforms that can scale to millions of users while Western competitors often over-index on pure code.
  • Cypherpunk Roots: A significant group of builders is focused on decentralized social protocols like Farcaster to solve local censorship needs. This necessity breeds innovation that the West eventually adopts for convenience.

🏗️ The "So What" Filter

  • Pragmatic Analysis: Eastern researchers prioritize liquidity flows and practical utility over abstract technical promises. This skeptical filter prevents them from falling for over-engineered projects that lack market fit.
  • Information Asymmetry: Chinese crypto Twitter provides a unique perspective on technology that remains invisible to those only following English-speaking influencers. Accessing this circle is the ultimate competitive advantage for global investors.

Actionable Takeaways

  • 🌐 The Macro Shift: Operational Arbitrage. The next cycle favors teams that combine Western storytelling with Eastern operational intensity.
  • The Tactical Edge: Integrate GMGN. Monitor the tools and platforms used by high-volume Chinese retail clusters to identify emerging liquidity trends on Solana.
  • 🎯 The Bottom Line: Ignoring the Chinese ecosystem is a choice to remain blind to the market's most active participants. Success requires bridge-builders who can translate Eastern execution into Western markets.

Podcast Link: Click here to listen

I think the Chinese crypto ecosystem is very complicated and sophisticated. I think there are a few groups, right? You do have the retails who are extremely sharp, right? They are literally aping Solana shit coins all the time and I suspect a lot of the Trump volume come from China and they're using this product called GMGN and guys you guys should check out. It's very good tool to use. So the traders I think the retails will just do what retail does. I think it's universal. So that's first group, right?

The second group in terms of builders, I think they're a really good Chinese builder and Chinese builder really good at building product that's focusing on operations and growth. So that's why Chinese are very good at centralized exchanges because operation heavy, right? And similar with like Binance, right? Binance had TikTok as ops heavy. So China has like centralized exchanges.

But I also think there's bunch of like central punk builders in China. I remember early days when Farcaster came there are so many enthusiastic Chinese builder who want to build decentralized social and that's because you know that's kind of needed in China right so I think there's like a lot of goodwill of Chinese builders they struggle to get to west the audiences because of messagings and language barrier which I think a lot of international builders face but I think that part of Chinese builders are quite neglected and the one who can actually speak good English like Stephen right they made a huge win because they combined this the knowledge of building products. They know how to run girls and they speak English. They get the message across.

So, so I think that's uh the builder category. I think the third category is actually researchers. I love checking out crypto Twitter, the Chinese crypto Twitter circle because they give me insights I can never see in the western media, right? The way that Chinese audience analyze liquidity, analyze technology, especially like okay, okay, you have this piece of technology, so what? Right? I think the Chinese researchers give a very good read on this that a lot of the western audiences.

So I think in summary extremely diverse, extremely vibrant. I think Chinese would never leave crypto just because where the country stands. I wish there are more Chinese founders who can have a bigger audience with a global crypto scene. But I think that's just going to take time. In the meantime, Chinese traders will rule any project. If you want to make a dance, you probably need to hire someone who's very good at, you know, knowing the Chinese community.

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