Blockchain financing forced the "coin mountain"

Blockchain companies have blocked one another in the traditional capital market.

On July 26, the Hong Kong Stock Exchange issued a heavy regulatory document "Consultation Summary on Backdoor Listings and Other Shell Stock Activities", which is likely to interrupt the backdoor of OK and the two major exchanges.

According to the guiding principle GL78-14, the regulatory layer's determination of the shell company is mainly based on the size of the acquisition or issuance, and whether the issuer's main business has fundamentally changed. In the event of a change in the control or actual control of the listed issuer and a fundamental shift in the issuer’s main business. The regulatory authorities will most likely use the anti-takeover rules to suspend or even delist.

This means that Bitcoin, Jianan Zhizhi and Yibang International's three blockchain mining companies have become difficult to lease on the HKEx through the IPO due to business problems.

In the mainland market, the science and technology board that has just opened is very lively. Since the online review of the system on March 18, a total of 149 companies have submitted applications for listing, of which 39 have already held listing committee meetings, 35 have been submitted to the CSRC for registration, and 28 have been registered. There is no blockchain company.

At the end of last year, there was a rumor that the Science and Technology Board focused on hard technology companies, and whether it contains scientific and technological content as a screening standard. For example, chip design, semiconductor manufacturing, new materials, high-end equipment, cloud computing, big data, bio-pharmaceuticals, etc., temporarily exclude business model innovation, online games, blockchain, webcasting and other industries.

This means that the blockchain companies' financing gates in China's traditional core capital markets are almost closed.

On the other hand, the characteristics of blockchain technology are quite special – it is a technology that changes the relationship of production and does not directly lead to an increase in productivity. And the industry is still in the early stage of development. If we want to mobilize production materials and productivity through production relations, we need the coordination and cooperation of various elements of society, and it takes a long time. At this stage, the ability of blockchain companies to generate positive cash flow directly is weak.

As a result, we have seen that the blockchain has returned to the hands of traditional Internet and financial companies. Mutual chain pulse statistics In the first half of the year, blockchain application top three, namely ant blockchain, Thunderbolt chain, and security account chain.

Revealing the application of the blockchain platform in the first half of 2019

(tabulation: interchain pulse)

Behind the number of applications is actually a combination of factors such as capital, technology, and resources. It seems that it is not beneficial to blockchain startups.

Due to the narrowing of the exit channel, the financing of the relevant companies in China's blockchain business in the primary market was also affected. In 2018, China's blockchain project private equity financing outshine, global financing totaled about 33.35 billion yuan, of which China was 15.47 billion yuan, accounting for 46.4% of global financing. However, in the first half of this year, according to the inter-chain pulse statistics, 69 blockchain private equity financing projects were disclosed in China, accounting for 38% of the global total. The publicly disclosed financing amount was only 1.222 billion yuan, accounting for 10%. Among them, Jianan Zhizhi has raised 672 million yuan; while the US disclosed 59 blockchain private financing projects, accounting for 33% of the global total, and the publicly disclosed financing amount is as high as 7.6 billion yuan, accounting for 64%. , is six times the Chinese market.

(Cartography: Inter-Chain Pulse Source: Inter-Chain Pulse Institute)

China's blockchain entrepreneurship can be said to be difficult, so in order to survive, moving towards the "coin" city is also a helpless choice. However, the financing of the currency is risky but illegal. Most of the Chinese team projects have chosen to go overseas, which brings higher operating costs. Therefore, the number of people used in this road is greatly reduced.

(Source: Inwara)

Therefore, according to Inwara statistics, 30 Chinese team projects were conducted through ICO, IEO and STO in the first half of the year. The number is only half that of the United States, not as much as Singapore and the United Kingdom.

The more serious impact is that, as we all know, the ICO and IEO markets still lack effective supervision. After the project financing is not done, the financing is cut, or the intention is to finance and financing can not be effectively stopped. In the case of losses to investors and further “stigmatization” of blockchains, the traditional capital market will not accept it.

When I saw that the US SEC opened the STO, and intends to become a cryptocurrency node such as Bitcoin and Ethereum, it will once again be sweating for China's blockchain entrepreneurs.

This article is [ inter-chain pulse ] original

Author: Mutual chain pulse commentator Yuan yet