Home / Crypto Currency / China Sees 454% Increase in Companies with ‘Blockchain’ in Name

China Sees 454% Increase in Companies with ‘Blockchain’ in Name


China

Advertisement

Today’s $1,000 bitcoin price rally aside, the cryptocurrency market might be enduring a bear cycle triggered by vanishing consumer interest, but blockchain, it seems, is still big business — particularly in China.

Citing government data sourced from Chinese-language outlet Qixin, the South China Morning Post reports that, from Jan. 1 to July 16, 3,078 China-based companies have filed to include qukualian, the Chinese word for blockchain, in their names, up from just 555 in all of 2017. In the past calendar year, 16,600 newly-registered firms have included blockchain as part of their business strategy.

That data stands in contrast to the U.S., where just 817 registered firms include the word “blockchain” in their names. Even that figure, though, has drawn comparisons to the dot-com bubble, when companies added “.com” to their names so that investors would perceive them as trendy tech companies. Valuations soared but ultimately collapsed as the 20th century gave way to the 21st.

High-profile examples in the U.S. blockchain industry include Riot Blockchain, a former biotech company, and Long Blockchain, which prior to its crypto rebrand operated under the name Long Island Iced Tea.

These firms quickly turned into “proxy stocks” for the cryptocurrency market, and their stock prices soared in Q4 2017 along with the bitcoin price, as crypto-shy investors sought to gain exposure to the burgeoning industry.

However, these valuations — built entirely on speculation and hype — have plummeted during the recent bear market, outpacing even cryptocurrency prices in their rate of decline.

long blockchain stock price
Source: Bloomberg

Long Blockchain, the ultimate face of the so-called “blockchain bubble,” now finds itself delisted from the Nasdaq Stock Market and relegated to over-the-counter (OTC) trading. Its share price, meanwhile, has declined to $0.38 from a mid-December peak above the $9.00 mark.

As CCN reported, China’s government has passed a number of policies hostile to cryptocurrencies, but it has also embraced blockchain and distributed ledger technology (DLT) as a key focus of its strategy to cement its status as the world’s leading tech center.

Earlier this year, for instance, President Xi Jinping said that blockchain is one of several technologies “substantially reshaping the global economic structure,” and the country’s central bank has devoted significant resources to researching how it can leverage DLT to digitize its national currency.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

86% of ICO Tokens Now Worth Less than Initial Cryptocurrency Exchange Listing Price

Global professional services firm Ernst & Young (EY) has released a report on the performance of ICOs over the last year, and in keeping with the bear market for cryptocurrency assets, the trend was predictably downward. Just 10 Tokens Count for 99% of All ICO Gains EY released a report on ICOs back in December 2017, The post 86% of ICO Tokens Now Worth Less than Initial Cryptocurrency Exchange Listing Price appeared first on CCN

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.