Last week, the usual flurry of blockchain news slowed, but the news that broke was big. The first China-made global blockchain standards were approved and bitcoin rig maker Canaan may be back from near-death.
The world of blockchain moves fast, and nowhere does it move faster than China. Here’s what you need to know about China’s block-world from the week of Aug. 21-Sept. 6.
The new standards
- The International Telecommunications Union, the body that regulates related systems and telecommunications globally, approved new basic standards on financial applications for blockchain, developed by the People’s Bank of China, the China Academy of Information and Communications Technology, and Huawei. This is the first Chinese-developed international standard on blockchain for finance approved globally. It will serve as the basis for further specific standards that can grow China’s role in the world stage of blockchain, according to Chinese media reports. (Sina Finance, in Chinese)
- Alibaba launched at an event in Beijing a new standard for blockchain used for online charities. The e-commerce giant set forth standards in 10 specific areas, including deposit protection and privacy. (CNR, in Chinese)
Canaan is alive!
Cryptocurrency rig maker Canaan Creative has endured two short reports, several investor lawsuits, and an 85% decrease in share price since its listing on the Nasdaq in November. Its unaudited financial results for the second quarter indicate that the company is getting back on its feet and cleaning up its act.
Canaan cut its net losses by more than half in Q2 to RMB 16.8 million from RMB 39.9 million ($5.84 million) in the three months ended March. Its gross profit rocketed 1,711% in the same time period, and 302% year on year.
However, Canaan is not out of the woods quite yet. Concerns set out in two short reports over the company’s business model have not yet seen improvement: cash burning and research and development (R & D) investment.
Canaan’s cash and cash equivalents have decreased by 69% compared with Q4 2019, which the company attributed to a splurge on short-term investments. In the same time period, the rig maker’s short-term investments increased by a factor of 30.
Authors of the short reports accused the company of underspending on R & D, resulting in machines inferior to those of its competitors. The company has decreased its R & D spending by 38% sequentially and 28% year on year. (Canaan Creative)
- Throwback to Canaan’s troubles: a story of fraud accusations, disappearing distributors, and bitcoin volatility. (Financial Times)