Made in China #85: huge collapse of cryptocurrencies, a new dependency of the Chinese and other news
Under the heading “Made in China” collected news this week from China, not included in the main feed 4PDA: announcements, rumors and interesting events in the life of the main supplier of electronic goods in the world. In this issue you will learn about the collapse of the cryptocurrency because of the new law in China; a new according to Chinese teenagers and how a smartphone manufacturer in China the most loyal users.
China triggered a huge collapse of cryptocurrencies
This week has been the collapse of the world market of cryptocurrencies. According to Coinmarketcap, just three days the amount of capital decreased by nearly 20%. Last Saturday, the market capitalization of the cryptocurrencies was of the order of 179,8 billion dollars, and by Tuesday the figure was reduced to 134,7 billion dollars. The main reason for this sharp collapse was the ban on the people’s Bank of China for conducting all types of ICO (initial public offering cryptocurrencies). Moreover, the organizers all have conducted and completed stock was forced to return to customers of funds received for already purchased electronic tokens. All financial institutions, banks and other organizations prohibited transactions using the cryptocurrency. To mine bitcoins and other cryptocurrencies in China is not yet prohibited, but use them for payments in the country will not work.
The people’s Bank of China made its decision on the fact that the cryptocurrency is not backed by anything, and to achieve a certain volume, it may simply bring down the entire banking system. For example, last year, the ICO has raised nearly $ 1.6 billion. As of July 18 of this year the ICO in China has completed 65 sites and 43 continued fundraising. According to reports, the closed platform has collected about $ 398 million from 105 000 in China. Under the new regulation, these companies must return the money to the users back. The return process is not yet clear.
What will happen to the cryptocurrency market in the future — to assume extremely difficult. Note that Russia is already planning to impose cryptocurrency transactions taxes and to prohibit private individuals from purchasing bitcoins.
A clone of League of Legends replaced the Chinese real communication
In July, we wrotethat the most popular mobile game in China, became King of Glory, which is a clone of the popular League of Legends. Publisher of King of Glory is the biggest Chinese Internet service provider Tencent, who also owns Riot Games, the Studio responsible for League of Legends. This week it became known that the mobile clone LoL called the real madness among Chinese youth. King of Glory is played for 200 million people.
“When I sit together with their classmates, we don’t talk anymore, we just keep our smartphones and playing King of Glory. I understand that I have little time for meals or home work,” said 22-year-old Bi Alen.
Tencent uses to attract new players in the social network WeChat, with about 963 million active users per month. At the same time for check to King of Glory you can use the WeChat account, that only helps to Tencent to promote their game.
Moreover, this game has become a new way to communicate with young Chinese.
“It’s hard to be on the same page with my classmates in China, if they are always talking about the game, and I have no idea what that means. We have less in common, if I’m not playing it. It really reduced my stress and loneliness when I was abroad. We were supposed to sleep at night to be able to do large amounts of homework. But we will continue to play King of Glory, because it helps us to relax and keep a clear mind to continue the job learning,” said Bi Alen that year went to study in England.
Bi also says that the King of Glory helps her to communicate with friends even when she is in China, because they have more common topics.
Chinese users are the most loyal fans of Apple products
Recently it became known that the company Huawei beat Apple in sales of smartphones, thus becoming the second largest manufacturer in the world. This American Corporation still has a fairly strong position, and its smartphones which year are the most popular and leading all sales rankings. Moreover, in China, the home of Huawei, Apple has the largest user base. According to the Korea international trade Association, during the second quarter of this year in China used 171 million Apple smartphones, which is much greater than other companies.
On the second place with 132 million Huawei smartphones. Followed by Oppo (124 million), Vivo (108 million), Xiaomi (68 million) and Samsung (48 million). Interestingly, the technique of local producers mainly by young people. For example 50% of the Oppo smartphones purchased in China by persons under the age of 16 to 25 years. However, only 25% of buyers of devices Oppo and Vivo are ready again to buy a smartphone from these brands. But among iPhone owners as much as 53.4% of users are going again to choose Apple products. For example, the Samsung number of loyal buyers in China is only 7.2 percent.