Today’s $1,000 bitcoin price tag rally aside, the cryptocurrency sector could be enduring a bear cycle activated by vanishing consumer curiosity, but blockchain, it would seem, is nevertheless significant organization — especially in China.
Citing government info sourced from Chinese-language outlet Qixin, the South China Early morning Article reports that, from Jan. 1 to July 16, 3,078 China-centered companies have submitted to include things like qukualian, the Chinese word for blockchain, in their names, up from just 555 in all of 2017. In the previous calendar yr, 16,600 freshly-registered corporations have integrated blockchain as element of their organization technique.
That info stands in contrast to the U.S., the place just 817 registered corporations include things like the word “blockchain” in their names. Even that determine, even though, has drawn comparisons to the dot-com bubble, when companies additional “.com” to their names so that investors would understand them as stylish tech companies. Valuations soared but finally collapsed as the 20th century gave way to the 21st.
Substantial-profile examples in the U.S. blockchain industry include things like Riot Blockchain, a former biotech corporation, and Long Blockchain, which prior to its crypto rebrand operated below the name Long Island Iced Tea.
These corporations quickly turned into “proxy stocks” for the cryptocurrency sector, and their stock price ranges soared in Q4 2017 along with the bitcoin price tag, as crypto-shy investors sought to achieve exposure to the burgeoning industry.
On the other hand, these valuations — constructed solely on speculation and hoopla — have plummeted for the duration of the recent bear sector, outpacing even cryptocurrency price ranges in their charge of decrease.
Long Blockchain, the supreme encounter of the so-identified as “blockchain bubble,” now finds by itself delisted from the Nasdaq Stock Sector and relegated to in excess of-the-counter (OTC) investing. Its share price tag, in the meantime, has declined to $.38 from a mid-December peak earlier mentioned the $9.00 mark.
As CCN documented, China’s government has handed a selection of insurance policies hostile to cryptocurrencies, but it has also embraced blockchain and distributed ledger technology (DLT) as a key focus of its technique to cement its position as the world’s main tech centre.
Earlier this yr, for instance, President Xi Jinping explained that blockchain is a person of several technologies “substantially reshaping the world-wide economic composition,” and the country’s central lender has devoted important means to exploring how it can leverage DLT to digitize its nationwide forex.
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