Xunlei’s CEO Underlines 2 Political Dead Lines in Chinese Blockchain Industry
Despite China’s crypto crackdown, China still intends to be the global leader in all things blockchain. Many tech giants in China eye blockchain and invest heavily in the technology behind Bitcoin. Xunlei, the NASDAQ-listed network provider, is also a blockchain adherent. Chen Lei, CEO and director of Xunlei, has demonstrated his point of view on blockchain market and admonished domestic blockchain enterprises that there are two dead lines in Chinese blockchain industry.
“There are two dead lines that enterprises should be aware of in the blockchain innovation.” Chen Lei indicated that many companies are flooding into the blockchain industry and looking forward to adopting this advanced tech in their existing business. However, their blockchain adoption activities may also touch the policy dead line in China.
The first dead line is to use the name of ‘blockchain technology’ to raise funds illegally, and the second one is to exchange cryptocurrency with the fiat money. Innovative processes involve in these two activities are risky in China.
Looking into the future of the blockchain market, Chen Lei believes that this is still a fast-growing industry. Everybody is in a desperate attempt to seize the market share and the blockchain market is in a rapid developing period which is far away from the its bottleneck.
“Both the industrial giants and the startups are all able to get new market shares, we may witness fierce competitions take place in blockchain industry, but I think it’s still a long way from the industry reshuffle.”
Chen believes that the blockchain industry is similar to the chip industry which is also a very important social infrastructure. It would be against the country’s interest to be left behind in the emerging industry. Blockchain can bring great value in China’s overall development.
Nevertheless, the flourishing development of an industry cannot only rely on the capital raising. The talent training in higher educational institutions and the vast capital investment from the government are also very import for blockchain development in such early stage.