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It appears that China’s stock exchanges are seeking to prevent companies from issuing misleading information in order to drive hype around blockchain technology – potentially influencing their share price.
Blockchain Mania Sweeps China’s Stock Exchanges
China’s Shenzhen Exchange has announced its intention to crack down on businesses misleading investors by seeking to associate themselves with so called “distributed ledger technology”, or “blockchain”.
The crackdown appears to comprise a response to Zheijiang Enjoyor Electronics Co. Ltd’s recent spike in share price that followed a blockchain-related announcement on Wechat approximately one week ago. The announcement claimed that an affiliate company of Enjoyor Electronics had entered into a partnership with a forensic sciences center based in Zhengjiang which will see the launch of what the company described as the world’s first blockchain-based electrical data forensic certificate. The announcement triggered an immediate spike in the price of Enjoyor Electronics’ stock – reaching its 10% trading limit.
Upon Shenzhen Exchange’s insistence that the company divulge further details pertaining to the partnership – such as when the investment in the affiliate company was made, the number of shares owned by Enjoyor Electronics, the financial figures of said business, and evidence of the purported blockchain-based forensic procedure – Enjoyor Electronics deleted the Wechat announcement.
Shenzhen Exchange to Monitor Companies Claiming Blockchain Affiliation
In recent months, an increasing number of businesses have driven spikes in their share price by cashing in on the hype surrounding blockchain and cryptocurrency technology. In December 2017, for example, a small U.S beverage company saw its share price increase by over 400% after changing its name from Long Island Iced Tea Corp, to Long Blockchain Corporation. In a similar incident, Hong Kong-based Skypeople Fruit Juice appeared to double their share value by renaming to Future Fintech.
The trend of making dubious claims of embracing blockchain innovation to boost stock prices appears to have begun to take off in mainland China. According to China Money Network, “More than 20 listed companies have been questioned by the Shenzhen and Shanghai exchanges about their suspicious speculation on blockchain.”
Shenzhen Exchange has stated that it “will closely monitor relative companies’ disclosure and their stocks in the secondary market. Companies that use blockchain to speculate and mislead investors will receive disciplinary punishment, and severe violations will be reported to the China Securities Regulatory Commission.”
Following the Shenzhen Exchange’s announcement, Shanghai Exchange followed suit, announcing that 20 companies listed on its exchange appear to be speculating on blockchain technology. Shanghai Exchange has stated that in several instances it has imposed trading halts and requested businesses to divulge information regarding ties to the blockchain industry from several.
Do you think that China’s stock exchanges will be successful in cracking down on false claims of blockchain affiliations being made by listed companies? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
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US stock indexes closed broadly higher, led by gains in retailers, energy and industrial companies, the AP reports. Amazon jumped 2.7% Tuesday, leading the way higher for retailers. Energy companies rose along with the price of oil, and banks were also higher as bond yields rose. Oracle plunged 9….
Despite repeated warnings from the central bank of Indonesia about the supposed risks of cryptocurrency trading, everyday people keep turning to bitcoin in this highly populated Asian country. In fact, soon there will be more traders on just one crypto platform than there are on the local stock exchanges established over a 100 years before it.
Bitcoin Is More Popular Than Stocks
The Indonesia Digital Asset Exchange (Indodax), founded in 2014 as Bitcoin.co.id, has 1,147,430 members already on board, according to its website. That is just a bit shy of the Indonesia Stock Exchange, which opened in 1912, with only about 1.18 million registered participants according to data from the Indonesia Central Securities Depository. In fact, as the Indodax is the biggest in the country, but not the only venue to trade cryptocurrency for rupiah, it is possible that there are already more bitcoin investors than stock traders in Indonesia.
The Indodax is expected to have 1.5 million members by the end of the year, according to Chief Executive Officer Oscar Darmawan. “We are seeing almost 3,000 new members signing up everyday. Most people are trading in bitcoins though transactions in ethereum has increased significantly of late.” The cryptocurrency trading platform is targeting daily volume to double from an average 100 billion rupiah ($ 7.3 million) a day currently, Darmawan said.
Defying Bank Indonesia
The country’s central bank, Bank Indonesia, has in the past repeatedly issued warnings to the public regarding what it sees as the dangers of cryptocurrencies, although it has not gone as far as forcing closure of exchanges. Its crackdown has caused Indonesian bitcoin payment processors to cease operations and hurt local tourism businesses in the island of Bali. The latest figures show that there are a great deal of people willing to defy the central bank’s word among the country’s 261 million citizens.
And Indonesia is not the only emerging market known to see bitcoin trading becoming more popular than traditional securities. Earlier this year we reported that there are already more than twice as many people invested in bitcoin as those who trade stocks in Latin America’s largest economy, Brazil.
What can we learn from the fact that there are almost the same number of bitcoin investors and traditional stock traders in Indonesia? Share your thoughts in the comments section below!
Images courtesy of Shutterstock.
The post Soon There Will Be More Bitcoin Investors Than Stock Traders in Indonesia appeared first on Bitcoin News.
Before Equifax went public with news of its massive data breach last September, Jun Ying, the company’s then-US chief information officer, exercised and sold all his stock options. Now the SEC says the nearly $ 1 million move was insider trading, and Ying has been charged to that end in federal…
Jeff Bezos wants to make space travel as dynamic and entrepreneurial as the internet.
“The price of admission to space is very high,” Bezos said Saturday night in New York, accepting the Buzz Aldrin Space Exploration Award at the Explorers Club Annual Dinner. “I’m in the process of converting my…
Traditional stock investors have just gotten another avenue for indirect exposure to the bitcoin market. A Nasdaq exchange listed former patent management company, Marathon, has changed its focus to ASIC mining and today started producing bitcoin.
Marathon Patent Group, Inc. (Nasdaq:MARA), today announced that it has commenced bitcoin mining at a new facility in Quebec, Canada. Investors seems to greatly approve of this development as the stock is up 32% as of the time of writing a couple of hours after market open.
Marathon revealed that it had purchased 1,400 Antminer S9 miners from Bitmain and had leased 26,700 square feet of data center space in Quebec. The operations are expected to utilize approximately 2.0 MW and deliver approximately 19 Ph/s of ASIC mining capacity. The company is seeking to add up to an additional 3.9 MW of power. If completed, this is expected to provide capacity for up to 2,800 additional Antminer S-9s that if acquired, could be located at the same facility.
Marathon also explains to investors that while the Antminer S9s are presently mining bitcoin (BTC), they are able to switch to other digital assets/cryptocurrency using the SHA256 algorithm (such as bitcoin cash BCH) if needed.
From Patent Mining to Bitcoin Mining
Marathon was previously an patent licensing and commercialization company which acquired and managed intellectual property rights from a variety of sources, including large and small corporations, universities and other patent owners. Now the company is said to be focused on mining digital assets with specialized computer equipment and plans to expand its activities to mine new digital assets.
Merrick Okamoto, Marathon’s Interim Chief Executive Officer and Chairman of the Board of Directors, stated, “Today’s announcement represents a milestone for the Company. I’d like to thank everyone that worked so hard to make this day a reality for our shareholders.”
The province of Quebec, Canada has become a magnet for bitcoin miners from all over the world thanks to cheap hydroelectric power and cold climate.
Are we expected to see many more public companies enter the bitcoin mining market? Share your thoughts in the comments section below!
Images courtesy of Shutterstock.
The post Nasdaq-Listed Marathon Begins Bitcoin Mining Operations, Stock Up 32% appeared first on Bitcoin News.
Flush with cash from President Trump’s tax overhaul and bathing in more earnings than they know what to do with, U.S. companies are embarking on a buyback binge of historic dimension.
How big will it be? JPMorgan Chase & Co. strategists led by Dubravko Lakos-Bujas estimate that gross share repurchases…
A late burst of buying Friday erased a sharp drop stocks suffered early in the day, the AP reports. Bond yields and the price of gold rose, both signs that investors expect inflation might tick up. Investors remain focused on President Trump’s threat to impose tariffs on steel and aluminum…
Some economists said President Trump is responsible for the recent stock market downturn as well as the unwelcome return of market volatility and a possible looming recession – not because of what he’s said, but what he’s done.
L.A. Times – Business
Until the recent downturn, the soaring U.S. stock market had been one of President Trump’s favorite topics.
He’s tweeted more than 60 times since his election about new highs and frequently touted the gains in public comments.
“The stock market is smashing one record after another, and has added…