The Chinese Communist Party (CCP) takes the support of its leader in the blockchain to heart.
After Xi Jinping's bombshell last week urging his compatriots to "seize the opportunity" created by technology, the CCP released a decentralized application (dapp) allowing members to attest to their loyalty on a chain of chains.
According to a message published on Saturday by the CCP's propaganda bureau, the dapp, in literal translation entitled "Original Intentions Onchain," allows members to swear allegiance to the party and store it on a blockchain, which can be shared and seen by others.
The term "Original Intentions" is a specific phrase mentioned by Xi in his address to the 19th CPC National Congress in 2017, after which he became an important propaganda and education campaign for party members to remain attached. to their party.
According to the post, the technology behind the dapp was developed by a Beijing-based company called Lingzhu Technology, which claims to be a blockchain developer without much detail about its technology or team.
The company's registration data indicate that it has received an investment of public capital related to Tsinghua Chinese University and claims to have developed a blockchain called OF.
In fact, this company issued an unknown cryptocurrency called OFCoin and listed it on stock exchanges like OKEx and CoinMex in early 2018, several months after China had repressed its initial coin offerings and its crypto-encryption operations.
The price of OFCoin climbed 90% to 0,000326 USD on Saturday, just hours after the CPC issued the dapp, which said Lingzhu technology was behind. At the time of writing these lines, the coin had dropped 35% from this peak with only a few million dollars in daily trading volume.
It is not known if Lingzhu made a public sale of chips. The listing profile on CoinMex indicates that OFCoin provided for a private token sale of 20% of its 51.2 billion OFCoin in January 2018, in a ratio of 300,000 OFCoin to 1 Ether, while the price of Ether was about 1,000 USD.
The gathering in OFCoin is only an effect in China of Xi's speech.
After the Xinhua News Agency published Xi's comment on Friday, Xinwen Lianbo, the country's most-watched daily television show on Chinese Central Television (CCTV), devoted five minutes of his 30 minutes to this remark.
On Saturday, the People's Daily, an official spokesman, published an article on the front page in which Xi commented on the acceleration of blockchain development.
Although the state media focused on blockchain technology, the market regarded it as an official endorsement of Bitcoin. Its price jumped more than 12% Friday and reached a five-week high exceeding $ 10,000, before falling back to more than $ 9,000.
The market reaction was so enthusiastic that CCTV warned viewers on Saturday to calm down and not take Xi's words as an endorsement for any cryptocurrency. But the rise of the market has continued despite everything.
Chinese cryptographic projects
There were other signs of increased interest in blockchain and bitcoin in China.
Searches of Chinese terms on Baidu, the country's largest search engine, jumped 200% on Saturday, before falling on Sunday. Similarly, searches on China's leading mobile messaging platform, WeChat, advanced strongly after Friday's news (see image).
And, as of this writing, several major cryptos born in China, including Qtum, Vechain, Ontology, NEO, Tron, and Bytom, recorded significant gains Monday, ranging from 25% to 90%.
The effect of training went beyond crypto, with traded shares being tied to blockchain or cryptocurrency, recording even more significant growth.
In the United States, the price of Xunlei, a cloud computing company listed on NASDAQ, has increased by 107%. The Shenzhen-based company said it has developed an exclusive high-speed distributed network based on blockchain technology.
When the market opened Monday in mainland China, the prices of more than 100 SOEs more or less related to their business operations or product offerings all rose by 10% that day (maximum allowed).
In Hong Kong, shares of blockchain-associated companies also rose sharply. For example, LEAP Holdings and Pantronics Holdings, the two fictitious companies purchased by the founders of OKCoin and Huobi, recorded rises of 50% and more on Monday morning, China time.
Chinese yuan image via Shutterstock