Recent Surge in Blockchain Registrations
This month, Chinese entrepreneurs have shown a relentless entrepreneurial spirit by establishing 714 new blockchain companies, bringing the total count of operational blockchain firms in the country to an eye-popping 26,089. Talk about keeping your resume updated!
Overall Landscape of Blockchain Firms in China
According to the cryptocurrency data wizards at LongHash, China’s overall blockchain firm count has hit 79,556. Yet, caution is advised, as 57,257 of these firms have either lost their legal status or had their licenses snatched away. Maybe the blockchain world isn’t quite as stable as we initially thought!
Trends Over Time: The Rollercoaster of Blockchain Firms
If you look at the timeline from 2009 to 2017, it appears that the growth rate of blockchain start-ups was about as exciting as watching paint dry. But hang on to your hats! In 2018, there was a quantum leap. If January’s numbers hold steady throughout 2020, we could see a whopping 8,565 fresh blockchain-related start-ups getting in on the action. Really, who needs the “other” tech sectors when blockchain is here doing moonwalks?
Where Are the Blockchain Firms Hiding?
Geographically speaking, Guangdong province is hogging the spotlight with 28.5% of the country’s blockchain firms. Shenzhen is the major player here and well-known for its tech-savvy environment. It’s like the Bermuda Triangle of blockchain development—companies either come out loaded with innovation or vanish without a trace!
Funding: What’s the Deal?
Despite all the hustle and bustle, average funding in this burgeoning sector looks as sad as a kid at a candy store without any cash—more than 46% of Chinese blockchain firms hold less than 5,000 yuan in registered capital, which is roughly $721. It’s a stark reminder that dreams don’t always come with a hefty bank account!
As a side note, speaking of financial humor: 8.32% of firms are sitting comfortably between $721 and $1,442, 26% have between $1,442 and $7,208, and only 9.17% of firms have more than $7,208. Now that’s what we call a ‘cash flow problem’!
China’s Government Influence on Blockchain Growth
Back in October 2019, President Xi Jinping declared blockchain an essential aspect of China’s innovation strategy, with calls to invest in core technologies. The response has been swift, as blockchain applications have spiked within government projects—sometimes we wonder if blockchains get any vacation time.
Post-announcement, critics of blockchain technology found themselves somewhat… silenced in the media. Talk about blockchain innovations taking over and reworking the rulebook!
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