Blockchain Company Xunlei Sees Nasdaq Share Prices Triple After China’s Commitment To Tech
Shortly after Chinese President Xi Jingpin commented on how blockchain should be embraced, a lot of interesting events unfurled.
The President during his speech at a meeting of the Political Bureau of the Chinese Communist Party’s Central Committee on Thursday remarked that the country should “seize the opportunity” afforded by the development of blockchain technology.
This gave a boost and a much-needed legitimacy to the crypto sector and had a huge ripple effect that saw the searches for blockchain and bitcoin see more than a ten-fold increase on WeChat. Bitcoin prices recorded the third-highest gain in the cryptocurrency’s history. Many universities almost overnight came up with blockchain courses online and unsurprisingly the share price of Xunlei Limited more than doubled overnight.
Xunlei Limited is one of the leading companies in China that works on blockchain technology and cloud computing. Entering the sector in 2017, Xunlei took a bet that was deemed to be too risky at the time.
But in the wake of Xi Jingpin’s comments saying that the blockchain technology has a wide array of applications within China, the stock price of Xunlei Limited increased by over 107%; the stock trading at $4.82 (October 25th close), $2.50 more than its previous close.
After transforming itself into a blockchain company, Xunlei released OneThing Cloud that lets users get LinkToken (a type of virtual token) for contributing their bandwidth to Xunlei's Content Delivery Network. The company appears as a great investment option currently with analysts expecting the share price to rise considerably in the next 12 months.
Following the remarks, on October 26th China also passed the cryptocurrency law that will encourage the adoption of blockchain technology by the government, educational institutions and social groups. It will be interesting to see what such state sponsorship does to all the blockchain companies in the country in the coming future.