A Chinese video streaming provider, Leshi Internet, is under the investigation of the Shenzhen Stock Exchange. A subsidiary of Leishi, Lerong Zhixin came up with an announcement regarding its decision to join hands with a blockchain startup to accomplish the tasks of crypto mining.
The launch of Video Console
This unexpected partnership aims at crypto mining through a video streaming console. Lerong Zhixin, the smart TV maker, claimed that it is ready to reward users with tokens as it now blends a distributed network. The condition is that the users need to share their idle broadband with the other users connected in the blockchain network.
An enquiry by The Shenzhen Stock Exchange
A formal enquiry has been charged by the Shenzhen Stock Exchange, a couple of days after the announcement. The enquiry ordered the firm to submit details on the blockchain resources and manpower of the firm. It also questioned the technical capacity of the blockchain startup.
The exchange that comes under the administration of China’s Securities Regulatory Commission reminded the firm about the legal formalities in the matter of crypto mining in China.
Needless to say, the confusion on whether Leshi is capable of delivering a product through such a complicated technology still remains a mystery. The experts view that this is an attempt to lift its stock price. There was already a 5% hike in the share price within 2 months post the announcement on crypto mining hit the news. The probe is very clearly to ascertain the capability of Leshi on its promise and to understand its evil motive if any in the blockchain space.
Getting Back the Lost Glow
In the field of video streaming services, packed with some giant competitors such as Netflix, Leshi tried hard to make a place for itself. The firm launched in 2004 went through a series of financial hazards. There was a moment, where the share price of the firm collapsed from 26 USD to 0.5 USD. In December last year, a court in Beijing is said to have seized Leshi’s share worth millions of dollars. However, as per the recent report, Leshi is bouncing back to better financials.
Technological advancement and the strategies to improve the crypto mining by different market players are closely observed by regulators. There are plenty happening in this domain and it is important to regulate the crypto market rigorously to safeguard this booming industry and position it perfectly for the future.
