Chinese Tech Firm Probed Over Launch of Crypto-Mining Video Console

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Leshi Internet, a Chinese video streaming provider with a history of financial problems, Is being contested by the Shenzhen Stock Exchange over its subsidiary’s move to the crypto space. Lerong Zhixin, a wise Television maker owned by Shenzhen recorded Leishi, announced a plan on Wednesday to partner with a blockchain startup to launch a video streaming console which may be employed to mine cryptocurrency. At a launch event this week, the subsidiary said that since the new product incorporates a dispersed networks, users will be rewarded with tokens by allowing their idle broadband to be shared with some other users connected to the blockchain.

After the statement, The Shenzhen Stock Exchange – that is administrated by China’s Securities Regulatory Commission – delivered Leshi a formal enquiry on Friday, asking for details about the firm’s blockchain resources and workforce, and also its partner’s technical capability. The exchange also contested firm over possible regulatory issues about the procedure for cryptocurrency mining in China. Where the questions are leading, efficiently, Is to determine if Leshi really has the technology to provide the promised product or it’s benefiting from blockchain hype to boost its stock price. Since the first statement, Leshi’s share price increased by just as much as 5% during the last two days.

Even though the profit might not be as noteworthy as past comparable Cases of companies seeing stock spikes after pivots to blockchain, the news comes at a time when Leshi is recovering its fiscal well-being after decades of debt and financial issues. Launched in 2004 as a video streaming service, Leshi made a series of efforts to expand in the last few decades to compete with the international streaming giants such as Netflix. It had been later reported to be in financial deep water by media outlets in China and elsewhere, after which its share price declined from as large as $26 in 2015 to around $0.50 in the moment.

Back in Sept 2017, Leshi’s creator and its holding company LeEco were put on a credit blacklist by regulators in China, public information shows. A local court in Beijing allegedly captured millions of dollars worth of Leshi shares in December. Video streaming picture via Shutterstock. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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