Chinese State-Owned Media Attempt to Quell the Rush to Crypto Stocks

Chinese state-owned media are trying to subdue the hurry into crypto stocks following President Xi’s remarks to “seize the opportunity” afforded by blockchain. 

State-backed offices are releasing material intended to empower “rational” investments, in the midst of this flood in speculation in blockchain and fintech companies, Reuters revealed on October 29.

On Monday, more than 100 open fintech organizations – attached or extraneously identified with blockchain – increased in price at market opening as sentiment around the industry turned bullish, but maybe too much of an extent.

“Blockchain’s future is here but we must remain rational,” wrote the state-backed People’s Daily paper on October 28.

Echoing the stand embraced by China Central Television this end of the week, the paper proceeded:

“The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”

Reuters additionally revealed that the independent Shanghai Stock Exchange cautioned 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.”

While there has been a lot of publicity, the interest followed by updates of 500 or more specific enterprise blockchain initiatives already in development in China and registered over the previous year.

Crypto-frenzy spurred by Xi was not restricted to China. Yesterday, the Antigua and Barbuda-based derivatives exchange FTX revealed an index fund that includes eight China-related digital currencies.