Blockchain technology is one of the most significant modes of fintech to emerge in recent times, and diverse industries want to incorporate this technology in some way or another to help enhance their customer experience and to refine their business operations, among other things. With Chinese President Xi Jinping expressing keen interest in seeking to adopt blockchain technology in all economic, industrial and commercial aspects, a lot of Chinese firms seem to be using "blockchain technology" simply as a means of falsely amplifying their offerings and services.
False Claims Part Of Get-Rich-Quick Scams
According to the Global Times, which is a Chinese state-run media house, numerous companies in China seem to find it simpler to claim that they are utilizing blockchain technology than to truly practice its application. Various Chinese firms across a variety of industries reportedly state that they are employing the use of blockchain tech in some form or another, but lack real evidence to prove that they are doing so. Global Times in their expose report that out of over 3,000 registered businesses, about 500 firms claim to be incorporating blockchain tech in their day-to-day operations, but only about 40 of these companies have been able to demonstrate that they are actively doing so.
Ever since President Xi Jinping's call for increased innovation, adoption and regulation of blockchain technology and cryptocurrencies, the technology has become a buzzword for businesses all over the country, most of which are using it as a part of their get-rich-quick scams to dupe investors and consumers.
China's Crypto Market Flooded With Ponzi Schemes
This is, however, not the first instance of fraud relating to blockchain tech and cryptocurrencies in the country, as in late 2017, the Chinese government began cracking down heavily of illegal issuing of tokens, ICOs (initial coin offerings) and financial fraud regarding the dispensation and sale of various prominent as well as indigenous cryptocurrencies. According to the National Internet Emergency Center of China, there are currently close to 755 different tokens operating in its cryptocurrency market, out of which the agency has shortlisted 102 of these to be part of Ponzi schemes. A majority of these 755 coins have no real investments that are supporting them.