The cryptocurrency market may be in a bearish cycle (despite today’s rallies). However, what’s certain is that blockchain is still a big business, especially in China.
According to government data published by the Chinese language outlet Qixin, the South China Morning Post reported that from January 1st to June 16th, more than 3,078 companies based in China have filed to include quikualian (blockchain in Chinese) in their names, up from just 555 in 2017.
In 2018, more than 16,600 newly registered firms included blockchain as part of their business strategy. Meanwhile, the US has only 817 registered firms with the name “blockchain” in their names. If we look back at the 20th-century trend when US companies added ‘dot-com’ to their names to be perceived as trendy, the valuations then soared but ultimately collapsed with the introduction of the 21st century.
In the United States, high-profile examples with blockchain in their name include Riot Blockchain which is a former biotech company – and Long Blockchain which operated under the name Long Island Iced Tea prior to the rebrand.
The firms quickly transformed into “proxy stocks” for the cryptocurrency market – and their stock prices surged in Q4 2017 along with the Bitcoin price. However, these valuations were built entirely on speculation and hype and have plummeted during the recent bear market.
In China, the government decided to pass a number of policies hostile to cryptocurrencies but also embraced blockchain and distributed ledger technologies (DLT) as a key focus on its strategy towards becoming the world’s leading tech center.
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