South Korea’s Defense Arm Announces Funding for Blockchain Projects

South Korea’s Defense Acquisition Program Administration (DAPA) has launched a pilot for developing blockchain applications for the defense industry, according to an official notice Jan. 11.

According to the program, the government ministry is planning to provide grants of up to 600 million South Korean won (about $530,000) for each project.

Small and large defense companies are encouraged to apply for funding via the website of the Korea Internet & Security Agency (KISA), a sub-organization of the South Korean Ministry of Science and ICT, the report notes.

According to British military-focused news outlet Jane’s 360, the move is a part of the country’s efforts to contribute to the development of so-called Fourth Industrial Revolution (4IR) technologies. The country’s 4IR focus has been reportedly outlined in its Defense Industry Development Plan, introduced in 2018, that looks to develop emerging technologies such as robotics, artificial intelligence (AI), autonomous systems and big data analytics.

In September 2018, the KISA revealed plans to extend its public blockchain pilot projects to revive the domestic blockchain industry. As a part of the initiative, the South Korean government planned to spend around $9 million to promote blockchain projects across public and private sectors.

In December, Cointelegraph reported that a division for the United States Air Force had developed a blockchain-based educational tool for supply chain management in order to provide better visibility for the military’s complex logistics network.


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Author: Helen Partz
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The Biggest Problem for ICOs? In 2018, It Was Their Own Investors

Simon Seojoon Kim is CEO and partner at Hashed, a crypto-focused accelerator focused on community building and impact investing.

The following is an exclusive contribution to CoinDesk’s 2018 Year in Review.

At the beginning of 2018, the blockchain community reached the pinnacle of the ICO bubble.

The slogan of ICOs, which promised that “anyone can invest in an initial project,” sounded wonderful and future-oriented. However, as the prices of most ICO tokens continued to tumble over the past year, it appears that the first chapter of this grand experiment has ended in failure.

Why do most ICOs fail to succeed? Some would cite the greed of individuals blindly looking to make a quick fortune, incompetent project teams led by entrepreneurs that lack expertise, the technical limitations of platform blockchains that lack scalability and inadequate regulations in countries that have been unable to keep up with changing market conditions.

These are all true. However, there is little to learn from this, as these are difficulties that all innovative, paradigm-shifting technologies face when forging new markets in their early stages.

In this article, I aim to take stock of the current situation by examining the inherent limitations of ICOs, in particular the belief that “anyone can invest in an initial project,” and discuss some potential solutions.

The popularity of group purchasing channels

Despite the burst of the ICO bubble, the blockchain craze in Asian markets is not waning.

In fact, interest in new technological trends and expanding ecosystems is growing. In particular, in markets like China and Korea where cryptocurrencies have gained greater acceptance, retail investors continue to take part in initial investments for blockchain projects through a variety of methods.

In China, the secondary market has become popular because Chinese nationals are restricted from participating in ICOs by law, while in Korea, a number of ‘coin group purchase’ channels are being operated surreptitiously through KakaoTalk messenger or other communities.

Setting aside government regulation, there are other important reasons behind these trends.

Up until as recently as mid-2017, anyone with an interest in blockchain projects could participate in an ICO without much difficulty. However, from the second half of 2017, there has been a movement towards larger private rounds instead of public sales and lower participation from individual investors.

In particular, projects that were more confident in their fundraising ability increasingly sought a greater proportion of investment from institutional investors or dedicated crypto VCs instead of through public sales. Key examples of this are Ontology or Handshake, who simply engaged in community airdrops after a private sale, without conducting an ICO.

Individual investors interested in these projects attempt to get involved through influential brokers that can grant them access to the private round. At the same time, there are many complaints within the community about the expanding trend of institutional investors taking up the lion’s share of private rounds.

A reluctance to accept individual investors

There is a large gap between the role that many projects had hoped individual investors would play during the ICO, and the reality that they have been faced with afterwards.

While providing the public with a fair investment opportunity, project teams also hoped to create a loyal community that would be aligned with the project’s incentives and share in its growth.

Compared to the existing startup model, where the company grows based on investment received from a small number of institutional investors through closed channels, teams believed that ICOs would facilitate the creation of a more open ecosystem which would lead to a virtuous cycle of rapid growth.

However, individual investors in blockchain projects ultimately failed to provide much help to the projects in many cases.

The majority of ICO participants who formed the community’s persona were often “creditors” who only cared about the token price, rather than “contributors.” Many of these individuals simply jumped on the bandwagon of popular projects without a clear understanding of or trust in the project’s core technology or business.

Accordingly, they contributed very little to the productive activities that promote healthy growth within communities. In addition to this, few of the individual investors who took part in ICOs for blockchain projects actually used the tokens they received for the intended purpose once the dapp or platform was released. Instead, they were essentially free riders who sold off their tokens as soon as the price hit a certain level.

This led to a growing awareness among teams that they could actually threaten the long-term development of projects. From the perspective of project teams, it seems more efficient to manage a small number of professional investors rather than have to communicate and provide explanations to a community of individual investors who constantly ask about the price and listing on exchanges, especially during the launch stage when the team is naturally spending most of its energy on development.

Institutional investors also tend to have their own networks and greater insight into the blockchain industry. In many cases, institutional investors have provided practical assistance to help grow the project by playing an advisory role to entrepreneurs or recruiting team members during the early stages. These investors can provide support in a number of ways, including building local communities in key locations, hosting hackathons to connect developers to the project, or acting as a liaison with major media channels.

Because there is a longer lock-up period in private rounds than in public rounds, institutional investors have no choice but to believe in the mid-to-long-term growth of the project and offer assistance where they can. Of course, not all institutional investors effectively contribute to the development of a project. The behavior of some institutional investors who fail to provide promised support or lack expertise and judgment has also been a source of complaints within communities.

However, the competitive nature of markets is helping to correct this problem.

Because of the free and transparent flow of information in the hyper connected crypto ecosystem, information about reputable and not so reputable institutional investors spreads quickly between blockchain entrepreneurs. In time, only reputable crypto funds will be given the opportunity to invest in promising projects, similar to the growth process that venture capital markets went through.

Is investment the only way to contribute to a project?

Thus far I have looked at the growing trend of smaller public rounds in 2018.

I am not trying to raise the dichotomous question of whether individual or institutional investors are more suitable for investment in initial projects. The more fundamental question is, “How do we create an ecosystem in which those who contribute to projects can become initial shareholders?” and I believe the mechanism to enable this is Proof of Contribution.

Think back to the advent of the world’s first cryptocurrency, bitcoin, which represented the beginning of the decentralization paradigm, and the process through which tokens were issued. Bitcoin issued tokens to the community purely through mining, without any token sale targeting investors. When miners provided hash power, their contribution would be verified in a way that enhanced the security of the network, and they were rewarded with bitcoins in return.

Although the protocol-defined method of contribution to the network was simple, it was fundamentally a proof-of-work (PoW) concept, which could also be viewed as a form of ‘Proof of Contribution’ that reflected the philosophy of compensating those who contribute to a project. During the long period where no one paid attention to the price of Bitcoin, the majority of early shareholders in the network were people who carried a strong belief in decentralized currencies rather than those looking to make a short-term profit.

In the IT industry, there is a clear distinction between the role of 1) investors, 2) the company and 3) employees during the early stages of a startup. Investors receive equity in the company in return for providing initial capital. It is then the company’s job to use these funds effectively to grow the company. Employees receive stock options upon joining the company, and are incentivized to work hard because of the clear upside potential of a higher share price.

I believe that this stock options system was the biggest driving force behind innovation in the Silicon Valley startups of today.

Accordingly, it is unfortunate that most blockchain projects have reduced the role of external stakeholders who join the project in its initial stages to that of ‘investors’ in traditional IT startups. This is demonstrated by the fact that the token allocation section in the white papers of most blockchain projects resembles a business development plan and marketing budget that was determined entirely by the project team, instead of a system of autonomous token distribution through the protocol. In most cases, the token model is only described briefly, with a focus on the main activities that will take place once the network is sufficiently established.

In other words, the model for network growth is selling tokens to investors through marketing, sales or partnership activities, with the use of such funds arbitrarily determined by the project team. This suggests that blockchain projects to date have not taken full advantage of the benefits of decentralization. Instead of treating individuals who make early contributions as merely financial investors, projects that are truly pursuing decentralization should recognize them as more akin to employees who receive stock options (and can actively contribute to the network from outside the organization) and adopt a philosophy of ‘compensation through the protocol’ to leverage them.

Blockchain projects have the potential to design detailed and effective reward systems catered to the nature of their token model that can verify the contributions of members and compensate them accordingly. For example, even if initial investors are given bonuses as a reward for financial contributions, the calculation and payment of the bonus could take place at a later date once it has been proved that the individual has reached a certain level of use on the project’s sapp or made a contribution to PR activities though a method defined by the protocol.

This would incentivize investors to participate in a more substantive way. In addition to this, a variety of protocols could be designed that encourage non-investors to contribute through participation in permissionless networks, and distribute tokens for such involvement.

In the future, we will see blockchain projects with more complex value chains that have greater crossover with the real world. The ultimate goal of decentralized projects should be decentralizing the project’s entire value chain. To achieve this, all of the key sections of the value chain of ordinary companies, from R&D to marketing and sales, should be turned into protocols that are as detailed as possible, and companies should also consider mechanisms to incentivize top experts from outside the organization to contribute to the project’s growth in efficient ways by offering rewards.

Tokens can be used as effective tools in this scenario, but it is critical that the method for calculating incentives for contributions is based on a transparent and defined protocol that is made public, unlike in centralized startups where it is based on the fleeting, arbitrary decisions of the management team.

This can give protocol-based organizations the competitive edge over centralized companies.

Distributing tokens only to real contributors

Investment is merely one of many ways to contribute to the growth of a project.

I believe that the underlying reason behind the failure of so many ICOs these days is that the communities are filled with initial shareholders who only care about the token price because they joined as investors.

The identity of any organization is determined by the nature of its initial shareholders. This leads to a chain reaction which influences those who join the community later on, and also has a critical influence on the direction and speed of the network’s growth. In order to succeed, blockchain projects from 2019 onwards will have to demonstrate more advanced methods than their predecessors when it comes to determining the composition of their initial shareholder pools.

They should look to move away from the current methods of giving tokens to anyone who invests, random airdrops and relying on partnerships based on the decisions of centralized entities when forming initial shareholder communities.

Despite the failure of so many ICOs, many still believe in the strong underlying value of blockchain technology which has the potential to completely change the foundations of our economic systems.

Moving forward, I hope that more blockchain projects will take up the challenge of using token distribution models where ‘not just anyone can become an initial shareholder,’ and consider a “proof of contribution” model which distributes tokens only to those who have made a substantive contribution.


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Author: Simon Seojoon Kim
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Cardano (ADA) Crypto Card is Here. Pay with ADA in Over 33 000 Retailers

EMURGO, the company which drives the adoption of Cardano and adds value to ADA holders, introduced the much anticipated Cardano (ADA) crypto card in Seoul, South Korea.

The solution is possible thanks to EMURGO and Metaps+ partnership. As the result the partnership will deliver a solution for South Korea residents to use their ADA at more than 33,000 retailers, marking a huge step in the adoption of Cardano.

The news was shared on EMURGO official Youtube channel on December 10, 2018, and the community has accepted the news with a great satisfaction.

The Cardano Crypto Card

Not many specs are shared regarding the Cardano crypto card but one thing is clear, it’s simple and fast to pay as confirmation takes only a few seconds.

It is also visible that the cards are issued with a certain amount of cryptocurrency ADA. In this scenario – 1000 ADA.

Cardano Adoption

Aside from Cardano crypto card introduction, EMURGO seems to be living its moment by driving ADA adoption, as recently together with Ripple, NEM and Fetch.AI launched “Blockchain for Europe” association. Four blockchain global leaders have joined hands to develop an association to represent blockchain originating organizations in Europe.

Moreover, Cardano launched its testnet where users can use the test tokens to experience the current system and learn how to use upcoming features safely and at no cost.

ADA Crypto card Introduction Video:


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Author: Justin
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South Korean Startup Presto to File Constitutional Appeal Against Local ICO Ban

A South Korean blockchain startup, Presto, will reportedly file a constitutional appeal over the county’s ban on Initial Coin Offerings (ICOs), South Korean economic media outlet Sedaily reportsDec. 6.

Presto claims on its website that it provides a “total solution to development teams from website building to token issuing.” The startup was reportedly trying to run a Decentralized Autonomous Organization-based Initial Coin Offering (DAICO) in South Korea for the first time.

As Cointelegraph explained in a dedicated guide, DAICOs aim to improve the ICO fundraising method by integrating some features of Decentralized Autonomous Organizations (DAOs).

This fundraising method enables users to use smart contracts to vote for a refund of the funds if they stop trusting the developers or lose faith in the project, Sedaily notes.

As Cointelegraph reported, South Korea banned all ICOs in September last year. Sedaily reports that Presto’s CEO and founder, Kang Kyung-Won declared that the startup has “been hitting a snag as the government and the National Assembly have done nothing over the last one year since the government’s blanket ban on ICOs.”

He then announced their intention to file a constitutional appeal:

“We will ask the court to rule on the ICO ban and the legislature’s nonfeasance.”

Sedaily explains that according to Presto, the ban infringes on “people’s freedom of occupation and property and equal rights and scientist’s basic rights.” Kyung-Won said that given the fast pace of technological development that came with the fourth industrial revolution, “such unconstitutional and pre-modern measures as the ICO ban should not exist any longer.”

South Korea’s stance to crypto regulation stands in clear contrast with other countries like Malta. As Cointelegraph reported in July, Malta has been acclaimed as “the blockchain island” after the local parliament approved three bills that gave the crypto industry unprecedented legal clarity.

The Maltese government is also reportedly working on an artificial intelligence (AI) strategy of which the ultimate objective is to “explore a citizenship test for robots in the process of drafting new regulation for AI.”

That being said, South Korea recently overtook the Maltese crypto exchanges daily trading volume in November according to a CryptoCompare report. In the document, analysts suggest that the reason behind this shift are “competitions, trans-fee mining and rebate programs.”



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Author: Adrian Zmudzinski
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South Korean Crypto Market Surges Along With Bitcoin (BTC) Stability and Bitcoin Cash (BCH) Rally

The South Korean cryptocurrency market is surging as daily Bitcoin (BTC) trading volume in the country has jumped by 10-15% in the past two days.

Seoul-based crypto exchange Bithumb has processed over $666,658,444 in BTC-KRW (Korean Won) trading in the past 24 hours, according to data by CoinMarketCap. Total cryptocurrency trades for the exchange have exceeded $3.1 billion, surpassing the world’s leading crypto exchanges, including Binance and OKEx.

Source: CoinMarketCap

Meanwhile, XRP and Bitcoin Cash (BCH) have skyrocketed on Upbit. South Korea’s second largest cryptocurrency exchange currently reports a 70%+ increase in trade volume with XRP and BCH representing 44.76% and 16.43% of total volume, respectively. Bitcoin Cash is currently up 9% at $600 and XRP is up 8.7% at $.52.

Source: CoinMarketCap

From June through September the Korean crypto market appeared to be stagnant, if not shrinking. At that time, Bithumb was hacked, reporting $31 million in stolen cryptocurrency. Also in June, South Korean exchange Coinrail was hacked, losing an estimated $40 million.

The exchanges suspended deposits and withdrawals, and trading was scaled back until security issues were resolved. The resolution of these issues, combined with an announcement from Korea’s watchdog, Financial Services Commission (FSC), appears to be providing the latest market boost. According to a report by Asia Crypto Today, commissioner Choi Jong-gu says the regulator will permit cryptocurrency exchanges to obtain banking services.

As Bitcoin stabilizes, it continues to show signs of reduced volatility and market maturity. Up .39% at $6,451 at time of writing, Bitcoin has been trading between $6,000 and $6,700 since mid-September, according to data by CoinMarketCap, approaching its lowest volatility in nearly two years.


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Author: Daily Hodl Staff
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FBI, S Korean Police Bust International XRP Phishing Scam

Police in Seoul have arrested at least two people on suspicion of cryptocurrency-related fraud after a joint investigation with the American FBI.

The agencies say they unearthed a phishing scam that appears to have robbed South Korean and Japanese cryptocurrency investors of USD 800,000 worth of Ripple (XRP).
Per TV news station MBC, at least one of the two men arrested is described as an office worker. The man allegedly mastermind an email-powered sting that drew in 24 South Koreans and 37 Japanese investors.

Prosecutors said the man hired a 42-year-old programmer to create a fake Ripple exchange website. The mastermind then sent emails to Ripple users in South Korea and Japan, claiming their funds had been frozen. The email redirected Ripple users to the fraudulent site, where he was able to convince them to enter their IDs and passwords, which he then used to access their accounts. It is thought that the FBI became involved because the phishing site targeted users of Ripple, an American cryptocurrency.

The man is said to have transferred funds into Korean won via legitimate exchanges, and used the money to pay for accommodation in a luxury apartment complex and fund an extravagant lifestyle.

Per Joongang Ilbo, the suspect claims that he has spent all of the money and cryptocurrency holdings, and has nothing left over. The prosecution service said it would be hard for the victims to receive any compensation for their losses – largely because cryptocurrencies are not deemed to have any monetary value under South Korean law.
The men have been indicted on charges of cyber fraud and violations of the Information and Communications Networks Act.

Many of Japan’s major, government-licensed cryptocurrency exchange platforms are providing “insufficient” protection against phishing schemes, potentially allowing cybercriminals to compromise their users, according to a report published by the University of Tsukuba and investment management firm Nomura Asset Management in May.
While phishing emails are probably the most common attempt to steal user credentials, fake exchange websites have become another popular tool for hackers to gain access to cryptocurrency investors’ funds.

When typing the name of an exchange into Google, you will regularly see exchanges listed on the top of the search results as ads. What is not always clear, however, is that some of these ads have been taken out by hackers and will lead you to a website that looks almost the same of the original exchange website but has the sole purpose of stealing your login credentials to then steal your funds on the actual exchange.

Fake exchange websites have popped up for a long list of exchanges including Bittrex, Poloniex, and Binance, among others.


Source
Author: Tim Alper
Image Credit: iStock/South_agency

The Fight For ICOs Intensifies in South Korea

Politicians and lawyers have led a fresh round of calls for the South Korean government to amend or repeal its initial coin offering (ICO) ban. The calls were made at a blockchain policy meeting held at the National Assembly (the South Korean parliament), and was chaired by influential MP Song Hee-kyung.
LIONBIT
Song is the former managing director of KT, one of the country’s biggest telecommunications companies, and is now a member of parliament for the largest opposition party, the Liberty Korea Party. She is also a member of a number of influential parliamentary committees.

She called for the government to create zones within the country where ICOs could be issued freely. Per media outlet News1, Song stated, “Special laws need to be put in place and special blockchain and ICO zones should be designated, where all forms of ICO issuance should be permitted.”

Song’s opinions were echoed by Ahn Jung-joo, a lawyer in the South Korean Justice Department, who News1 quotes as saying, “South Korea’s ICO ban has stopped over 100 startups from doing business in this country, leading to a South Korean exodus to countries with more [progressive] ICO [legislation], such as Malta and Singapore.”
TIP
The calls came just days after a separate meeting of MPs urged ICO reform – and asked Seoul to provide support for the pro-crypto governor of Jeju Island, a semi-autonomous South Korean province that is hoping to use its special legal status to begin allowing ICO issuance.

The South Korean government is preparing to respond to renewed calls from opposition MPs urging the executive to make ICO reforms, as reported. Minister of Science and ICT You Young Min stated that he intended to consult with the regulatory Financial Supervisory Commission before making an official response.

Meanwhile, Singapore is the favored choice for South Korean businesses, with many of them launching their ICOs in the city state so far this year. Singaporean companies are garnering rich benefits from South Korea’s ICO ban.

“It costs up to USD 270,000 in consultancy and legal fees for a South Korean company to launch an ICO here. And on top of that, we need to pay our taxes to the Singaporean government – not to Seoul,” according the owner of a South Korean company that has recently launched an ICO in Singapore.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Tim Alper
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AVATARAhttps://www.peoplestoken.org/
Peoples Token

S Korean Exchanges: Gov Wants To “Cut Off Its Nose”

Three of South Korea’s biggest cryptocurrency exchange associations – the Korea Blockchain Association, the Korea Blockchain Industry Promotion Association and the Korea Blockchain Startup Association – have hit back at a government proposal to stop granting exchanges the same sort of tax breaks afforded to other small- and medium-sized businesses.
LIONBIT
The three associations say the government’s decision shows a lack of medium-term planning, and, per the Hankook Ilbo, have accused Seoul of “cutting off its nose to spite its face.”

The associations said, “Exchanges and cryptocurrency brokerage businesses are being put in the same category as entertainment venues. If this legislation passes, many blockchain technology-related companies will find it harder to invest in research and development. Some companies may well move abroad.”

The group criticized the government for going back on its pledge to support Industry 4.0-related companies and the fintech sector.

TIP

The Hankook Ilbo quotes an unnamed employee at a South Korean exchange as saying, “We are very sorry to hear that the government is taking this decision at a time when cryptocurrency and blockchain technology is starting to gain worldwide recognition.”
As reported in February, some 30 of the country’s cryptocurrency exchanges generated a combined USD 648 million in taxable revenue in 2017.

As previously reported on Cryptonews.com, Kim Dong-yeon, the South Korean finance minister and the country’s Deputy Prime Minister, wants to change the way exchanges pay income tax and corporate tax – doing away with tax breaks of between 50% and 100% in the case of newer companies, and tax discounts of up to 30% in the case of older businesses.

The government says exchanges are not generating enough “value” to justify tax breaks, and will move to stop exchanges being classified as “venture companies.” Other businesses excluded from venture company status include pubs, karaoke venues and dance clubs.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Tim Alper
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Rich South Koreans Reluctant To Buy More Crypto

In South Korea, the richer you are, the more likely you are to have cryptocurrency holdings, say the authors of a new survey. However, it seems that the rich’s confidence in Bitcoin and altcoins has taken a tumble.

LIONBIT

Per the findings of the KB Financial Group – a financial services mammoth that encompasses banking giant Kookmin Bank – richer South Koreans are more likely to have bought cryptocurrencies in the past, but are becoming reluctant to re-enter the market.

The KB Financial Group’s Korean Wealth Report found that some 24% of richer South Korean have purchased cryptocurrencies at some point, compared to 14% of less-affluent citizens.

However, the survey found that only 2% of wealthier South Koreans intend to make cryptocurrency purchases in the future.

TIP

Furthermore, among the country’s most affluent capitalists (those with financial assets worth over USD 4.5 million), investors were twice as likely to have cryptocurrency holdings than those with less capital. This group also expressed a little more confidence in the market, with 5% saying they would consider re-investing in cryptocurrencies.

The survey also found that South Korean investors were almost half as likely to buy cryptocurrencies as investors elsewhere in Asia. Per the survey, 29% of South Korean respondents said they intended to buy cryptocurrencies at some point – compared to 52% of those living elsewhere on the continent.

Confidence in the market took a hit in South Korea earlier this year after a proposed government crackdown sent currencies into a tailspin – as well as a series of hacks on many of the country’s leading exchange platforms.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Tim Alper
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There Are More than Sixteen Thousand Blockchain Companies in China

3,078 companies registered a blockchain-themed name in the first six months of 2018.

The number of firms in China with the word ‘blockchain’ in their name has exploded in the first six months of 2018, according to the South China Morning Post.

The information is based on government data gathered by qixin.com

Time to buy the dip?

According to this data, in 2017 there were 555 companies in China with the word qukualian in their names, while 3,078 companies registered such names between January and mid-July 2018.

Examples include:

‘Hangzhou Today Marriage Blockchain Technology’
‘Guangzhou Chinese Medicine Homeopathy Blockchain Technology’
‘Jiangsu Dragon Liquor Blockchain Trade’

Moreover, in the last 12 months, 16,600 new companies in China have declared blockchain to be part of their business.

Background
This echoes a similar trend seen in the West recently. In some cases, unscrupulous businesses have sought to profit from the general enthusiasm for blockchain technology – the most widely-publicised example was New York-based soft drinks company Long Island Iced Tea Corp, which changed its name to Long Blockchain Corp and saw its share price dramatically jump despite the rebrand being entirely cosmetic. Other examples include a UK firm called On-line Plc changing its name to On-line Blockchain Plc, and a company called Bioptix changing its name to Riot Blockchain Inc.

Long Blockchain was eventually de-listed from the NASDAQ stock exchange, and Riot Blockchain Inc had to deal with a class-action lawsuit.

South Korea was also reported to be investigating this phenomenon, but the authorities in that country chose not to reveal specific examples so as not to cause market instability.

4,000 names for blockchain
Research from the SCMP reveals that in the US there are currently 817 companies with blockchain-themed names and 335 in the UK. China has over 4,000.To those aware of the history of the Chinese government with cryptocurrency this may seem strange – after all, most cryptocurrency-based activities were made illegal there a while ago – events are sometimes halted by police, and many of the country’s biggest cryptocurrency-based companies have left.

However, local governments throughout the country have been encouraging the industry (the report names Shanghai, Shanxi, Henan, Guangzhou, Guiyang, and Hangzhou) with financial incentives, and approximately 41 percent of all funded Chinese startups were somehow related to blockchain technology.

As we have reported in the past, China appears to be supportive of the industry as long as it can be controlled.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Simon Golstein
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