Half Of Chinese Stock Exchange Firms Investigated By Govt Fail To Demonstrate Real Blockchain Uses
Half Of Chinese Stock Exchange Companies Investigated By Government Fail To Demonstrate Real Uses For The Blockchain Tech
You can say a lot of things about the blockchain technology and one of them is that this term was used most likely as a buzzword by a lot of people. A new investigation made in China reveals the truth behind this.
According to the Chinese state media, a recent investigation was made on 30% of the companies listed on Chinese Stock Exchange that affirm that they use the blockchain (or the distributed ledger technology). From the companies investigated by the government, only half of them actually had working products using the blockchain.
The investigation was made due to the speculative frenzy that affected the financial market in 2017 and in part of 2018. To hype their businesses, many companies associated their brands to the distributed ledger technology, but it looks like only half of them actually delivered a usable product instead of only delivering empty promises.
According to the Chinese government, 80 public companies boast to have used the blockchain technology in their business this year or in 2017. From these 80 companies, 56 of them have seen their prices increased after the announcement.
The main doubt here is if these companies actually used the technology of it they only used the blockchain as a buzzword to increase their prices.
23 companies out of the total of 80 were directly investigated by the Shanzhen and Shanghai stock exchanges during the year. Half of these companies have failed to show any meaningful use of the technology, which made the government believe that, in fact, these companies were using the blockchain as no more than a buzzword.
13 of the 23 companies talked that they “researched” or explored the distributed ledger technology only and it was deemed by the regulators that they only used the name of the technology to boost the popularity of their brands.