How Chinese Cryptocurrency Mining Companies Will Make A Rush Soon

Chinese tech companies are using cryptocurrency to maneuver around competition, raising capital and remaining relevant in the market. In the last couple of months, some Chinese companies have leveraged their gains by declaring their intention to engage in the cryptocurrency and encryption. Luckily, this has yielded handsomely for them as their performance in various stock markets shoot northwards.

Among these companies is Renren, a social networking outfit which has been dubbed the “Facebook of China.”. In its early years, Renren was highly favored by young people and students in China who found its Facebook-like features friendly. A few years down the line, Renren was overtaken by newcomers such as Weibo, Sina, and Wechat who brought to the market a different perspective of social media.

In a bid to rediscover the tracks, Renren has announced its intention to develop a cryptocurrency through which users can be rewarded for contributing content as well as charging advertisers. The token, named RR Coin, has a total of 1 billion coins, part of 40% of which will go into an Initial Coin Offer (ICO), while the rest will be put into various segments of company’s expansion process.

Although some observers argue that the RR Coin is overvalued, these rejuvenated efforts to win back a share of the social media market saw the Renren’s stock on NYSE rise by about 19%. This is a big boost and a pointer that the move was well thought for the tech company. With 15% of the 1 billion RR Coins slated for marketing and development, the company will focus its efforts in popularizing supportive activities for the growth of the coin.

Another company that has reaped the fruits of crypto currency trend is Xunlei Networking Technologies which trades as XNET on NASDAQ. In October 2017, XNET launched a blockchain sourcing project dubbed the “Wanke coin mining.” The stock market reacted by increasing the company’s stocks to a 475% gain in under two months, from trading below $5 per share to around $25 per share.

In China, the blockchain trade is attracting players from some of the most unlikely quarters. Antivirus producer Qihoo 360 announced mid-December 2017 that the company is setting a cryptocurrency research center aimed at studying how the technology can impact the financial industry. Qihoo 360 took this a step further when it launched a website with live cryptocurrency trade chart resembling stock market trade charts.

The rush into cryptocurrency by Chinese tech companies presents an interesting perspective on the blockchain market with all the companies that made a move gaining significantly in their respective stock markets.

The cryptocurrency technology is challenging the financial industry in unprecedented ways. Companies are reaping from the impact of investing in the blockchain trade and this trend is expected to be more appealing with the introduction of more products into the market.

As the world’s fastest growing economy, China’s input into the crypto currency market will be observed closely by industry players.