China Crypto Craze: $1B Huobi Blockchain Fund, Billionaire Buys 10,000 BTC
Despite ongoing regulatory uncertainty, China’s level of affection for cryptoassets and blockchain technology appears as strong as ever – at least that is what’s being indicated by two overly bullish news stories that recently broke.
$1 Billion Incubator Fund
Indeed, Huobi – also responsible for the Huobi Token (HT) – announced recently that the company’s investment arm, Huobi Labs, has launched a US$1 billion blockchain fund to bolster the domestic economy.
The enormous fund has been established in collaboration with a Hainan-based social networking platform known as Tinya Community Network Technology.
In an effort to further develop the alliance, Huobi China is allegedly moving their office headquarters from Beijing to Hainan Province; an area President Xi Jiping recently declared as a ‘Special Economic Zone
10,000 BTC Purchased
In another promising development out of China, local Angel Investor Cai Wensheng revealed that he’d achieved his “personal goal to acquire 10,000 Bitcoins;” some four months after having decided to pursue it.
Bitcoin – it should be noted – hasn’t been the only cryptoasset purchased by Mr. Wensheng in recent times. Indeed, he claims to have positions in various altcoins as well, such as: Theta Token (THETA), Ontology (ONT), Cortex (CTXC), ArcBlock (ABT), Zippie (ZIPT), Yee (YEE), GXChain (GXC), and Charter (CAF).
Whilst the Chinese government has effectively banned both domestic cryptocurrencies and initial coin offerings (ICOs), these two examples are indicative of a healthy, growing demand within China for Bitcoin and other cryptocurrencies.
Problem With Prohibition
Indeed, the banning of the domestic and foreign cryptocurrency exchanges saw most (e.g. Huobi, OKEx, Binance) relocate to nearby countries, where their businesses have since continued to flourish into some of the world’s most successful.
Similarly, with Chinese citizens effectively banned from crypto trading, we’ve continued to hear of a gradual rise in trading volumes for over-the-counter (OTC) markets; suggestive of Chinese investors having unearthed a way to bypass their ‘ban’.
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