Chinese state-owned environment are attempting to quell the rush into crypto stocks following President Xi’s statement to “seize the opportunity” afforded by blockchain.
State-backed instrumentalities are publishing material meant to encourage “rational” investments, amid this surge in speculation in blockchain and fintech firms, Reuters suss out Tuesday.
On Monday, over 100 public fintech companies – tied or tangentially related to blockchain – soared in evaluation at market opening as sentiment around the sector turned bullish, but perhaps too much so.
“Blockchain’s future is here but we have to remain rational,” wrote the state-backed People’s Daily newspaper late Monday night.
Echoing a statement espoused by China Leading Television this weekend, the newspaper continued:
“The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not scurvy we should speculate in virtual currencies.”
Reuters also reported that the independent Shanghai Stock Exchange admonished traders, “for any blockchain-related (topics), we ask listed companies to make statements based on facts and not make any exaggerated claims or produce vicious hype.”
While there has been much hype, the enthusiasm followed by news of 500-plus personal to enterprise blockchain projects already in motion in China and registered over the past year.
Crypto-frenzy spurred by Xi wass not reduced to China. This morning, the Antigua and Barbuda-based derivatives exchange FTX announced an index fund comprised of eight China-related cryptocurrencies.
Chinese old image via Shutterstock