China Crypto Roundup (Sept 7- Sept 14): ETH Withdrawal Frenzy in China as DEX Mining Runs Rampant, Bitcoin Miners in Short Supply in China, China’s BSN in Line With Open Finance Concept
The top stories from the Chinese cryptocurrency sphere this past week includes: ETH stocks in centralized exchanges are declining rapidly as DEX mining runs rampant, Bitcoin miners in short supply as Chinese manufacturers’ capacity inadequate, China’s BSN, digital silk road in line with open finance concept……
Bitcoin miners in short supply in China
Chinese miner makers including Whatsminer, Canaan, Ebang have sold out most of their stocks this year, while Bitmain is trapped in internal disputes and delivery delay. The bitcoin miners are now faced with the short supply of bitcoin miner.
Bitcoin mining machines are mainly divided into two schools, one incuding Whatsminer, Canaan, Ebang, and innosilicon, which adopts Samsung’s 8nm chip; the other including Bitmain, which adopts TSMC’s 7nm chip.
The former school is the lack of chip capacity as Samsung’s high-end technology level and production capacity are limited, while Bitmain, due to the disputes between the two founders, both parties could not finish the production singly.
ETH withdrawal frenzy in China as DEX mining runs rampant
A large number of DeFi coins like ETH are flowing out from CEX to DEX (Decentralized Exchange). Many users bought the dip during the recent ETH price dump in the centralized exchanges, and then transferred ETH for DEX mining. According to data from CryptoQuant, ETH stocks in centralized exchanges are declining rapidly.
On September 6, Ethereum’s reserves in CEXes stood at $12.4 billion, compared with $14.14 billion on May 12, down about 12%. According to the data from Tokenview, the net inflow of bitcoin to the CEXes reached a peak on August 21, then gradually declines to the bottom since on September 3. On September 1, the total net inflow of the exchange CEXes by 63.83%, among which Binance, Bitfinex and Poloniex declined the most.
Chinese users found they had difficulties in withdrawing coins from some crypto CEXes (Centralized Exchange). It was reported that the ETH futures in Huobi could not be cancelled, another centralized exchange OKEx also suspended the withdrawal of ETH. But it is not true that the CEX restricts the withdrawal of coins. The withdrawal of coins in the first and second tier exchanges is basically normal, but there may be some delay due to technical failure.
China’s BSN, digital silk road in line with open finance concept
The Open Finance (OpFi) concept somewhat aligns with the idea behind the Blockchain Service Network (BSN) initiative launched by China in August, BSN, as well as China’s goal to establish a digital Silk Road, is an institutional manifestation of OpFi at scale and in many ways as he explains his platform’s continuous push for blockchain development in the OpFi space particularly among ASEAN countries.
Though OpFi is not wholly predicated on the inclusion of blockchain, growing and promoting the use of blockchain-enabled fintech solutions across Southeast Asia is expected to bring greater financial accessibility to the region. Promoting OpFi across ASEAN countries has been enhanced by the region’s highly connected societies with two-thirds of its population online and 90% of them choosing to access the internet via their mobile devices.