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China Authority Tries to Dampen Crypto Mania, Blockchain-related Stock Market Cools Down

Chinese state-owned media Xinhua news agency warned people from irrational speculation after President Xi’s statement to “seize the opportunity” afforded by blockchain.

Over 100 public fintech companies – tied or tangentially related to blockchain – soared in price at market opening as sentiment around the sector turned bullish. Blockchain concept stock Xunlei (XNET) saw its stock price soar 107.76% to $4.82, the highest daily rise since its listing on Nasdaq in 2014, amid expectations that large funds would pump into the blockchain sector following president Xi’s endorsement.

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Xinhua news agency, a publication under the direct control of the ruling political power, the Communist Party of China reminded people to remain rational.

“We should lay a solid foundation and master the core technologies in our own hands if we want to occupy a commanding height in blockchain field. With less impetuosity and more focus on long-term progress, can the blockchain industry be developed healthily and steadily”

After Chinese state-owned media’s warning, blockchain-related stock get cooled down with only 20 blockchain concept stock keep still. Blockchain concept stock Xunlei (XNET) closed at 16% down their highest level today. The independent Shanghai Stock Exchange warned traders, “for any blockchain-related (topics), we ask listed companies to make statements based on facts and not make any exaggerated claims or create vicious hype.”

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In 28, October, People’s Daily, another state-owned media said in a popular science article that

“Bitcoin was is only an application of blockchain, and it is not equal to blockchain, so do not misunderstand it.”

Due to the soaring share price, several blockchain concept companies released risk tips to disentangle themselves from blockchain business on the evening of the 29th.

At the same time, the Shenzhen Stock Exchange issued a letter of concern to a number of companies, asking them to explain whether there is a situation of using blockchain concept to hype stock prices.

Although in the short term, the upward trend of the blockchain index may be under pressure, the blockchain mania is likely to exceed previous expectations as Canaan Creative, a China-based crypto mining equipment manufacturer, has officially filed to be a publicly traded company in the United States, Those factors may cause the blockchain boom to last longer than expected, the market seems to be forming the recognition that China has taken the lead in the global blockchain industry.

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