The9, the company which previously had the exclusive license to operate and distribute World of Warcraft in China, has established deeper roots in blockchain and cryptocurrency.
The company has appointed Cai Zhifang, an early blockchain pioneer, as the CEO of NBTC Limited, a wholly-owned subsidiary of The9, to lead blockchain development cryptocurrency in their business.
Mr Cai is the co-founder of one of the earliest blockchain integration platforms in China, back in 2013. He will establish The9’s global leadership in the crypto industry by leading and expanding The9’s blockchain and cryptocurrency business. In January, The9 announced their move into blockchain and cryptocurrency-related business and acquired Bitcoin and Filecoin mining machines soon after to build their crypto mining business.
The9’s is Gearing Up to Be a Crypto Leader
On Feb 16th, The9 announced the purchase of equipment for mining a cryptocurrency called Filecoin. By noon that day, the company’s stock was up by 16%. According to the company’s press release, The9 signed a $10 million agreement to buy mining equipment for Filecoin, which ensured their market valuation increased by around $60 million.
The company has been involved with bitcoin mining, and their move can be attributed to bitcoin reaching a record high of $50,000 earlier this month. The9 has already purchased and deployed Filecoin mining machines, and Filecoin mining is in progress. Currently, The9 owns an independent node on the Filecoin blockchain and 8 Pebibyte of effective storage mining power in the Filecoin network.
What is Filecoin and Why is China Fond of it?
Filecoin is a decentralized file storing network that rewards users who store files. The people who store these files are called storage miners. Users pay for their files to be stored while storage miners are rewarded for their work. Filecoin has already been on the Chinese radar since 2018 where Chinese firms have started marketing Filecoin cloud mining services. It is considered easier to mine because specialized mining devices are not required. The Filecoin craze in China may be primarily related to the long-standing popularity of crypto mining in the country in general, which is home to around 65% of the computing power on Bitcoin by estimation.
Nearly 50 cryptocurrency exchanges in the country, including Biki Exchange and MXC Exchange, have a working IOU wherein they serve FIL futures served with Tether (USDT). Filecoin’s association with leading venture capitalists makes it an attractive aspect to companies like The9 in the Chinese community.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.