HomeCryptoChina's version of McJob meme, eCNY airdrops, Canaan's record revenue – Cointelegraph...

China’s version of McJob meme, eCNY airdrops, Canaan’s record revenue – Cointelegraph Magazine

This weekly roundup of information from Mainland China, Taiwan, and Hong Kong makes an attempt to curate the trade’s most necessary information, together with influential initiatives, modifications within the regulatory panorama, and enterprise blockchain integrations.

 

Regulatory noise

In this week’s column, the Man in Shanghai is decided to squeeze all of the regulatory noise into one part, in order to not waste an excessive amount of of your time. Let’s start. 

It wasn’t a lot, only a warning from the Hebei Provincial authorities to announce it could put an finish to cryptocurrency mining within the area. This is basically a non-story, because it’s primarily simply restating a nationwide stage coverage that went into impact months in the past. Hebei was by no means a lot of a mining stronghold anyway, so the announcement is extra procedural than anything. Mining operations will proceed to maneuver abroad whereas China goes by means of its unified push to grow to be carbon impartial.

For reference, China has 23 provinces, and near half have already restated their dedication to the nationwide coverage by asserting that cryptocurrency mining wouldn’t be tolerated.

The Securities Times, a state-owned publication, ran a narrative warning the general public concerning the bubble surrounding NFTs. This Shenzhen-based publication questioned the actual financial worth of NFTs, a subject that many of us have all puzzled about at instances. Still, the suspicion hasn’t stopped the development from spilling into much less mainstream artwork circles, the place NFT and metaverse-related occasions have gotten increasingly more common.

Selling shovels in a gold rush

While mining in China is perhaps troublesome, manufacturing mining machines is continuous to be fairly worthwhile. Canaan, one of the world’s largest producers of cryptocurrency mining {hardware}, introduced its highest quarterly income up to now. The firm’s Q2 financials confirmed that the corporate recorded over about $167.5 million in whole web revenue. This was doubtless pushed by the sharp improve in costs this spring, resulting in aggressive growth of mining services the world over. The subsequent spherical of quarterly financials will inform a deeper story, as traders will find out how badly aggressive rules by China have harm the trade. Zhang Nangeng, Chairman and Chief Executive Officer of Canaan stated:

​​“We delivered a remarkable performance in the second quarter of 2021. Despite unexpected regulatory policy dynamics and Bitcoin price volatility, we achieved record-high topline results as we delivered a robust 5.9 million Thash/s of computing power to our clients.”

Rounding up the buying and selling house

Volume remained largely flat on exchanges like Huobi and OKEx, because it has for the final 12 weeks. The final main spike got here in the course of the sell-off in early May, across the time Chinese regulators started their crackdown. Over this time, FTX has seen a powerful improve in quantity, suggesting that some Chinese customers is perhaps connecting to exchanges that haven’t historically been a dominant participant within the Chinese buying and selling house. 

FIL stays common on Huobi, ending within the prime 5 on Thursday’s 24-hr quantity chart. This token has maintained reputation amongst merchants in China, regardless of being about 50% under its all-time excessive from earlier this yr. ADA, SOL, and DOT have been property that confirmed up excessive on OKEx quantity charts, which mirrored world quantity distributions. Speaking of Solana, Chinese customers on Weibo reacted strongly to the community going offline on Wednesday, with some criticizing the community’s decentralization. Discussion broke out about whether or not Ethereum’s early technical points have been similar to this occasion, proving that Solana and Ethereum maxis will disagree in any tradition, regardless of the language.

Unleashing the eCNY

The central financial institution digital forex created by the Chinese federal financial institution is now being pushed out even additional, as common app Meituan is providing roughly $1.50 in eCNY (digital yuan) to customers who open a ‘digital wallet’ and use its providers.

Meituan is most generally identified for its brilliant yellow meals supply service and shared bikes, which might be discovered on most metropolis streets. The marketing campaign is supposed to encourage low-carbon residing, and is open to 9 pilot cities together with Beijing, Shanghai, Shenzhen and Chengdu.

 

The pockets interface is minimalist and permits customers to transform, deposit, and switch the eCNY

 

The eCNY, which initially was positioned as extra of an institutional remittance device for business banks, is now aggressively being pushed in the direction of retail customers. Already, giant franchises like McDonalds and Zara show eCNY fee indicators at point-of-sale counters throughout the nation. The present digital fee house is dominated by WeChat Pay and Alipay, however these two will doubtless have a tough time holding management of market share if the central authorities is concerned with forcing eCNY into competing purposes.  

Ironically, Meituan has a particular position in Chinese cryptocurrency meme tradition. Token holders usually joke they are going to be compelled to work in meals supply every time the market crashes, resulting in the meme under.

 

The Great Crypto Meme War. There will be a great crypto meme war… | by MAO DAO | Jul, 2021 | Medium
Meituan’s iconic supply drivers are the supply of many crypto-related memes throughout a market crash.

 

At the top of March, Meituan revealed it had round 570 million customers. Other monetary apps, together with banking apps, have already built-in the pockets providers into their merchandise. 

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