China’s Huobi to Back Blockchain Start-Ups
In a recent development in Chinese blockchain space, Huobi, a multi-language crypto exchange, has joined hands with Tianya Community Network Technology, a social networking platform from Hainan, to release a new blockchain fund.
On its official website, Huobi stated in a blog post that both the companies are willing to build a Global Cultural and Creative Blockchain Lab”. The crypto firm further announced its plans to shift its headquarters from Beijing to Hainan.
It is a known fact that China has the capabilities to serve as a significant market for blockchain based products and services like digital currencies. The country is still going strong with blockchain technology even after the government banned the trading and mining of virtual currencies.
Hainan Island is the smallest and southernmost province of China and will likely become an epicenter of innovation if the regulators of the country have their way.
Earlier this year, Hainan Island was turned into a pilot free-trade port by President Xi Jinping. It has now become a direct competitor of established players like Singapore and Hong-Kong.
According to the head of the country, his decisions will boost Hainan’s growth into the biggest special economic zone (SEZ) of China. He is assured that the climate and geography of the region are apt for development and innovation.
The executives of Huobi stated that Hainan is ready for reformation and the resources and strength of the country should be used in developing the experimental field while catering talents across the country.
The company wrote, “As a patriotic Chinese company, Huobi China will actively follow-up with the national-level strategy. In the future, Huobi will use Huobi Group’s technology, resources, talents, and capital advantages in the global blockchain industry to contribute to the development of Hainan Special Economic Zone and explore the construction of an international free trade port.”
Although it seems like Huobi has strong sentiments about nationalistic feelings, but it also sees heavy economic and commercial benefits in Hainan. Managing Director at iBlock, an incubator for blockchain projects at the University of Illinois Urbana – Champaign, Katt Gu, noted “Although China has banned ICOs, there are tons of blockchain-related projects like decentralized gaming apps being developed in China that have not issued ICOs. Huobi has set up the fund to invest in these promising projects as it doesn’t want to miss out on the trend.”
This Sunday, Huobi came up with the information of creating a new “Global Cultural and Creative Blockchain Lab” in Hainan.
Tianya Community Network Technology will be assisting Huobi Labs in accomplishing their goals. The company is expected to invest $1 billion USD in the funding stage to back many more up-coning start-ups in the country.
Chinese government has been supporting blockchain technology since its birth but has shown no interest in the development of its crypto space. As the country struggles to break few glass ceiling, management of a complex and demanding technology would not be easy. But, it feels like China will be successful in becoming one of the forerunners in the blockchain technology in the next 10 years.