Chinese President Xi Jinping recently endorsed blockchain technology — and one company’s stock is exploding as a result. Xunlei Limited, one of the leading Chinese companies in cloud computing and distributed ledger technology, has seen its stock price double since yesterday.
Xunlei Limited is an international company based in China. Boasting some 1,500 employees, it has been trading on the Nasdaq Stock Exchange since 2014. According to the Ministry of Industry and Information Technology in China, Xunlei is currently the 42nd leading internet company, according to its rankings.
Xunlei’s Stock Up 107 Percent
Since 2017, Xunlei has pivoted itself towards blockchain technology and formerly announced itself as a “blockchain company.” One of its products, OneThing Cloud, operates on a token-based system that rewards users for contributing their bandwidth.
The move was controversial for the company back in 2017, but it now seems to be outright state policy — with President Xi’s recent endorsement of blockchain technology, Xunlei is getting an unprecedented boost. The stock is up approximately 107 percent at the time of writing and trading $2.50 higher on the Nasdaq.
The Blockchain Craze Hits China
As BeInCrypto reported yesterday, President Xi has officially endorsed blockchain technology as a government initiative. Now, the flourishing of this technology will become state policy and be encouraged in every domain. This has naturally caused Xunlei’s stock to pump with expectations that it will get President Xi’s blessing to lead the country in blockchain implementation.
China has been leading the world in blockchain-related innovation for some time. The emerging superpower ranks first in blockchain patents, with two-thirds of the world’s patents in this field coming from China.
We can likely expect to see more blockchain-related startups spring up in China in the coming year. This will be the first major case study of the technology on a national level, and its implementation, that the world has ever seen. If successful, it put China on a significant geopolitical and technological advantage.
Images courtesy of Google.
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