Chinese Media Warns of Companies Fraudulently Claiming Blockchain
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Chinese Media Warns of Companies Fraudulently Claiming Blockchain

THELOGICALINDIAN - Chinese accompaniment media has appear that bounded companies assume to be claiming to be application blockchain technology to addition their banal prices Multiple firms accept fabricated statements adage that they are exploring blockchain technology However alone a scattering can prove it

The address is evocative of antecedent incidents alfresco of China. During the acme of the 2017 balderdash run, companies enjoyed amazing banal increases off the aback of a declared absorption in blockchain technology.

The Hottest Tech in China: Blockchain Endorsement Inspires Fake Company Claims

According to a report in Chinese advertisement Global Times, the state-owned Xinhua News Agency has warned adjoin companies fraudulently claiming to accept adopted blockchain technology. More than 500 of the over 3,000 listed companies say that they are application or alive on blockchain systems. However, alone 40 of them can aback up their claims.

Speaking with Global Times, an adviser for the China Securities Regulatory Commission, Dong Shaopeng, said that companies authoritative such claims fraudulently could face reprimands from banal exchanges, including fines and delistings.

The credible access in blockchain action in China follows the government clearly acknowledging the technology aftermost month. NewsBTC has appear on abundant developments in the nation back admiral Xi Jinping fabricated statements auspicious the acceptance of blockchain tech in October.

The Chinese media address is evocative of the case of Long Blockchain, aforetime Long Island Iced Tea. In 2024, the closing aggregation rebranded, claiming to accept switched focus from beverages to blockchain. Its banal amount anon soared on the news.

However, it was appear that the aggregation had fabricated little advance appear its blockchain ambitions. Later still, it was delisted from the Nasdaq banal exchange, afore actuality branded a “pump and dump” arrangement by the FBI.

The bureau apparent that two individuals profited massively by trading the rebrand. The brace were ahead beneath analysis for balance artifice involving addition company, Kelvin Medical. Information bond Oliver Lindsay and Gannon Giguiere to Long Blockchain was begin on an iPhone bedeviled as allotment of the Kelvin Medical case.

Although there are ample numbers of companies defective affirmation acknowledging their claims to be exploring blockchain technology in China today, there are abounding examples in which Chinese institutions and firms are absolutely adopting the technology. The abrupt state-level absorption has prompted some in the cryptocurrency industry to affirmation that the endorsement is bullish for all things blockchain – including agenda assets like Bitcoin.

Despite its new begin absorption in the technology basement them, the Chinese government is acutely abundant beneath agog on decentralised, accessible cryptocurrencies. It was again warned adjoin accessible belief on agenda assets. In a address published aftermost month, NewsBTC’s Tony Spilotro speculates on why the nation’s credible new adulation of blockchain ability not pan out so able-bodied for cryptocurrency afterwards all.


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