China Does Not Rank Blockchain Projects (They Never Did)

This headline may come as a surprise to some, but recent information (and clarification) provided by Chinese-speaking members of the cryptocurrency community have clarified and ‘busted’ claims circulating around various media outlets over the last few months with regards to China (the nation itself) providing a ranking of cryptocurrencies.

Examples of such headlines are below:

  • https://news.bitcoin.com/china-ranks-crypto-projects/
  • https://cointelegraph.com/news/chinese-blockchain-rankings-released-eos-still-first-ethereum-second-bitcoin-15th

Debunking the Myth of China ‘Ranking’ Blockchain Projects

Known cryptocurrency advocate (for VeChain specifically) and Chinese native, Ben Yorke posted a stream of tweets on February 28th, 2019, breakign down why the notion that China (as a nation) was providing ratings of blockchain projects is both absurd and false.

Below are select tweets from Ben Yorke that give greater clarification on what these rankings actually are, where they come from, and what their real ties are to the Chinese government:

Dissecting Ben’s Claims

While Ben does have a lengthy history of posting about cryptocurrency and he is verifiably domiciled in China with a fluency in the native tongue, we’d be remiss if we did not explore these claims further.

So our next task moving forward will be to look at other objective evidence that corroborates Ben’s statements.

Supporting Evidence #1 — China Banned ICOs in 2017

TechCrunch (and numerous other sources) reported on China’s blanket ban on all ICO funding back in 2017:

China has banned ICOs

This was the beginning of China’s aggressive efforts to make its antagonistic stance against cryptocurrencies widely known.

Supporting Evidence #2 — China’s Increased Restrictions on Cryptocurrencies in 2018

In 2018, China ramped up its prohibitive cryptocurrency legislation.

According to CNBC“On Aug. 24, five government bodies — the People’s Bank of China, the Banking Regulatory Commission, the Central Cyberspace Affairs Commission, the Ministry of Public Security and the State Administration for Market Regulation — issued a warning about risks from illegal fundraising under the guise of “blockchain” and “cryptocurrencies.” The announcement also called out those who used overseas servers while targeting Chinese investors.”

Oh, and if that wasn’t enough, China also blocked its citizens from accessing over 124 cryptocurrency exchanges on that same day:

https://www.investopedia.com/news/china-moves-block-124-global-crypto-exchanges/

Tencent (an extremely popular social media company in China) also announced that it would remove all cryptocurrency transaction processing and compatibility from its platform on August 24th, 2018:

http://tech.qq.com/a/20180824/088338.htm

This move was also accompanied with the explicit prohibition of any and all trading/ICO information related to cryptocurrencies. Tencent announced that those found in violation of this policy would be promptly removed from the platform (i.e., banned):

https://www.caixinglobal.com/2018-08-22/blockchain-news-accounts-booted-from-wechat-101317720.html

What is Tencent?

If the scope of this prohibition is lost upon you, don’t worry — we got you covered.

Tencent is a Chinese social media company that essentially has a monopoly on instant messaging and social media in China. As such, their user base is absolutely enormous. For reference, imagine if Facebook, Twitter, Instagram, and Snapchat all teamed up together to form one super social media company.

That’s what Tencent is in China.

To put the magnitude of this impact into perspective, it is worth considering that, in 2014, it was reported that Tencent owned 3/5 largest social media platforms on planet earth:

https://www.techinasia.com/tencent-owns-3-worlds-5-biggest-social-networks

In 2018, Tencent earned the title of ‘World’s Most Valuable Social Network Firm’ (Yes, that beats out Mr. Zuck of Facebook and Instagram):

https://theconversation.com/how-tencent-became-the-worlds-most-valuable-social-network-firm-with-barely-any-advertising-90334

China’s Government and Tencent Go Hand-in-Hand

According to Gizmodo, “ Tencent has a huge number of users — WeChat hit 938 million monthly users back in May — and the Chinese government has played a huge role in Tencent’s growth.”

China’s political structure dictates that companies such as ‘Tencent’ are only able to exist with the government’s blessing and a major caveat that comes with this cooperative relationship is that Tencent must acquiesce to any and all requests by the Chinese government.

Thus, if there is a sweeping change on the platform (like the one that occurred on the same day as the Chinese gov’t announcement prohibiting all blockchain-related funding), it is more than likely that the shot was called from the ‘top’ (i.e., the Chinese government).

Supporting Evidence #4 — China Has Openly Celebrated the Effectiveness of its Cryptocurrency Restrictions

In a piece released by Chinese publication, ‘XinhuaNET’, on July 7th, it was reported that the People’s Bank of China had lauded the country’s regulatory efforts in cutting down cryptocurrency usage.

According to the article:

Supporting Evidence #5 — China Had Issued Explicit Travel Bans on Huobi and OKCoin Executives Specifically in 2017

China was so hell-bent on curbing cryptocurrency trading that it actually issued a ban on executives from cryptocurrency exchanges, ‘OKCoin’ (OKex) and Huobi.

According to a piece published by ‘businessinsider’:

Supporting Evidence #6 — China Has Been on a Crusade to Track Down Any and All Cryptocurrency Miners

China has made it their mission to consistently hunt down any and all cryptocurrency miners within the nation’s purview.

Numerous sources have reported on China’s extremely antagonistic stance toward crypto miners:

  • https://www.forbes.com/sites/sarahsu/2018/01/15/chinas-shutdown-of-bitcoin-miners-isnt-just-about-electricity/#607fddf3369b
  • https://qz.com/1172632/chinas-dominance-in-bitcoin-mining-under-threat-as-regulators-hit-where-it-hurts-electricity/

Conclusion – All the Evidence Strongly Supports Ben Yorke’s Statements

Given China’s extremely antagonistic stance toward cryptocurrencies, Ben Yorke’s assertion that the blockchain rankings that are stemming from within China are entirely separate from the views of the Chinese government seem to be corroborated.

One must remember that these reports, which are always attributed to the nation of China itself, were still being published amidst all of the substantial efforts on the part of China to eliminate any and all affiliation, participation, trade, mining or mention of cryptocurrency within the nation.

When looking at China’s legislative and governmental actions objectively, it appears as though China has successfully banned everything but thinking about cryptocurrency at this point.

Thus, the idea that this same nation would be simultaneously researching the cryptosphere and publishing a list of their favorite cryptocurrencies is extremely implausible, at best.

Which Chinese Firm is Releasing These Reports?

The name of the company behind these blockchain reports is ‘SaidiWang’, or ‘CCIDNET’.

Further research into this company led to its website (in Chinese; must be translated if you are not a native speaker) where the following statement was posted:

Source: http://www.ccidnet.com/2018/0820/10416335.shtml

This statement (along with the evidence provided by Ben & China’s crypto legislation) all point to the conclusion that these blockchain reports are actually being produced independently of China.

At this point, unless sources are able to provide independently obtained evidence that refutes the facts presented within this piece and what Ben Yorke was contributed, then any and all mentions of China, the nation, publishing blockchain rankings should be considered fake news.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,471FansLike
2,795FollowersFollow
4,195FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Kraken Exchange Onboards Swiss Bank InCore to Help Euro Clients Buy Crypto With Fiat

Swiss Bank InCore has just become the first banking institution in the nation to provide banking services to Kraken crypto exchange. The deal, which was...

Bank Of Japan (BoJ) Launches ‘Technical' Study to Experimenting CBDCs

The race to launch a sovereign digital currency is heating up as Japan became the latest country to venture into a central bank digital...

This Top Coin, Being the Worst Performer of 2020, Is A Disappointment to the Crypto Market

The fourth-largest cryptocurrency by market cap is currently trading at $0.176 in green by 1.66%, like the majority of the market. With 8.61% losses In...

Cryptocurrency Payment Processor BitPay Finally Announces Support for SegWit

Bitpay, the crypto payment processing giant, has finally integrated the segregated witness (SegWit) protocol, a second layer scalable solution to make bitcoin processing cheaper....

Crypto Hardware Wallet Ledger: ‘Funds are Safe' After ‘BigSpender' Vulnerability Found

A vulnerability was recently discovered by ZenGo in popular cryptocurrency wallets Ledger, Edge, and BRD. Named BigSpender, the vulnerability could lead to a double-spend...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today