Chinese Shenzhen Exchange Questions Leshi Internet’s Crypto Space Move
Whenever a new crypto opportunity comes into the stratosphere, there is always another entity to challenge it. Leshi Internet was recently the victim of invasive questioning, due to their recent decision to embark on their crypto journey.
Leshi Internet is a local video streaming provider in China. However, its history is riddled with financial woes that have gotten them in deep trouble many times. For this reason, the Shenzhen Stock Exchange was a bit concerned with their decision to become a part of the crypto world. The announcement was released by Lerong Zhixin, who develops smart TVs and is owned by Leshi. This announcement specifically said that he would want to adapt a streaming console to have the power to mine cryptocurrency as well.
With this new product, consumers will be able to expect a distributed network with the mining software. Whenever the user gives permission to mine with the idle broadband connection, they will be earning tokens that other users can share on the blockchain.
As soon as the developer announced this new console, the Shenzhen Stock Exchange issued a formal enquiry towards Leshi. This enquiry was primarily at the administration of the Securities Regulatory Commission in China, and it required that Leshi detail the resources and power behind the blockchain. It also questioned the technical capacity of the company to handle the demand, as far as scaling, and even challenge regulatory concerns in the country.
Basically, the Exchange comes down to one thing – whether Leshi has the power and tech to deliver, or if they are capitalizing on the hype of blockchain for a boost in their stock price. If it is a publicity stunt, it is working, because the price has increased by at least five percent since the release of the announcement only two days ago. Even though this is not a substantial jump, it is still great news to a company that has suffered through years of money problems.
Leshi originally came into the market in 2004, exclusively streaming videos and falling underneath bigger companies like Netflix. In fact, reports showed how bad their fiscal situation was when their shares dropped from $26.00 to $0.50. About a year ago, the founder of Leshi and their holding company LeEco were blacklisted by Chinese regulators, which resulted in the seize of millions of dollars in Leshi shares.