This weekly news summary from China, Taiwan and Hong Kong attempts to plan the most important news in the industry, including influential projects, changes in the regulatory environment, and enterprise blockchain integration.
Table of Contents
Regulatory noise
In this week’s column, the Shanghainese are determined to squeeze all regulatory noise into one section, so as not to waste too much time. let us begin.
Nothing, just a warning from the Hebei Provincial Government Announce It will end cryptocurrency mining in the region. This is largely not a story, because it essentially reiterates the national policy that took effect a few months ago. In any case, Hebei has never been a mining base, so this announcement is more procedural than anything else. While China is unifying its efforts to achieve carbon neutrality, mining operations will continue to move overseas.
For reference, there are 23 provinces in China, and nearly half have reaffirmed their commitment to national policies by declaring that they will not tolerate cryptocurrency mining.
State-owned publication “Securities Times” tell a story Warn the public about the NFT bubble. This Shenzhen-based publication questioned the actual economic value of NFTs, a topic that many of us sometimes want to know. Nonetheless, this suspicion has not stopped this trend from spreading to less mainstream art circles, where NFTs and metaverse-related events have become more and more popular.
Selling shovels in the gold rush
Although mining in China may be difficult, the profitability of manufacturing mining machines is still high. Canaan is one of the world’s largest manufacturers of cryptocurrency mining hardware. Announce The highest quarterly profit to date.company’s Q2 Finance Shows that the company’s total net income exceeds approximately US$167.5 million. This may be due to the aggressive expansion of global mining facilities caused by the sharp rise in prices this spring. The next round of quarterly financial reports will tell a deeper story, because investors will understand how much China’s strict regulation has hurt the industry. Canaan Chairman and CEO Zhang Nangeng said:
“We achieved extraordinary results in the second quarter of 2021. Despite the unexpected regulatory policy dynamics and Bitcoin price fluctuations, we still achieved record revenue performance and provided customers with a strong 5.9 million Tash/sec. Calculate ability.”
Organize trading space
As in the past 12 weeks, trading volumes on exchanges such as Huobi and OKEx were basically flat. The last sharp rise was during the sell-off in early May, around the time when Chinese regulators began to crack down. During this period of time, FTX’s trading volume has seen strong growth, which indicates that some Chinese users may connect to exchanges that are not traditionally dominant in the Chinese trading field.
FIL is still very popular on Huobi, ranking in the top five on Thursday’s 24-hour trading volume chart. Although it is about 50% lower than its all-time high earlier this year, the token is still very popular among Chinese traders. ADA, SOL, and DOT are assets that appear high on the OKEx trading volume chart, reflecting the global trading volume distribution.Speaking of Solana, Chinese users are Weibo The offline of the network on Wednesday caused a strong reaction, with some criticizing the decentralization of the network. Discussions about whether the early technical issues of Ethereum can be comparable to this event have exploded, proving that Solana and Ethereum maxis will diverge in any culture, regardless of language.
Release eCNY
The central bank digital currency created by the Federal Bank of China Pushed Furthermore, the popular app Meituan provides eCNY (digital renminbi) of approximately US$1.50 to users who open a “digital wallet” and use its services.
Meituan is best known for its bright yellow takeaway service and shared bicycles, which can be found on most city streets. The event aims to encourage low-carbon living and is open to nine pilot cities including Beijing, Shanghai, Shenzhen and Chengdu.
eCNY was initially positioned more as an institutional remittance tool for commercial banks, and is now actively pushing it to retail users. Large franchise stores such as McDonald’s and Zara have displayed eCNY payment signs at point-of-sale counters across the country. The current digital payment field is dominated by WeChat Pay and Alipay, but if the central government intends to force eCNY into competing applications, it may be difficult for the two to control market share.
Ironically, Meituan plays a special role in China’s cryptocurrency memetic culture. Token holders often joke that whenever the market crashes, they will be forced to work in food delivery, which leads to the following meme.
At the end of March, Meituan disclose It has approximately 570 million users. Other financial applications, including banking applications, have integrated wallet services into their products.
