China’s cryptocurrency fans have been left out of the cryptocurrency market and Bitcoin’s hype, as a result of the Chinese authorities banning coin offerings in September and then shutting down all significant domestic exchanges. Nevertheless, it did not take long for them to find something fresh to put their money into.
That would be OneCoin, made by Chinese technology company Xunlei. Since its launching in mid-October, OneCoin’s worth has soared drastically in secondary markets–in one stage over 80-fold. That is despite OneCoin not being available for transaction in almost any significant market. Its mad ride has helped Xunlei become the best-performing inventory on Nasdaq for the majority of the previous two months.
Xunlei’s share price dropped lately following OneCoin attracting public scrutiny. This came after a disenchanted company partner accused OneCoin of becoming a first coin supplying–a hard-to-regulate method to increase funds by offering of cryptocurrency as opposed to shares.
Will China follow through and prohibit OneCoin? How long Can the OneCoin frenzy last? These are one of the important questions currently being pondered by cryptocurrency lovers and speculative investors equally.
So what actually is OneCoin?
Let us first discuss Xunlei, launched in 2003, That the firm started out as a torrent downloader, a kind of Chinese response to Pirate Bay. Afterwards Xunlei transformed itself into a video-streaming system with largely certified material, even as peer-to-peer downloading stayed a vital offering. In 2014, Xunlei went public on Nasdaq, following a first effort failed due partly to concerns within the pirated material on its own platforms. In late August, the business announced that it would turn into a blockchain firm, a large shift in its business plan. In addition, it published a blockchain-based hardware item named OneCloud.
Essentially, OneCloud is a network-attached storage apparatus That enables multiple users share internet storage remotely. In addition to this, it is a “mining system” which permits users to discuss their idle bandwidth using Xunlei’s content delivery networks (CDNs)–and also make some OneCoin for a reward.
OneCoin, can subsequently be utilized to buy value-added services supplied from Xunlei–for instance, additional storage on its own cloud assistance, or quicker download rates for its torrent downloader program.
OneCoin was created in a similar method to bitcoin. Presently, you will find around 1.6 million OneCoin up for grabs every 24 hours. The reward will reduce in half a year, also OneCoin’s total amount is going to be capped at about 1.5 billion.
Xunlei has not released the code for OneCoin, whereas important Cryptocurrencies such as bitcoin and ethereum are open-sourced. The business conducts a pocket program for OneCoin that supports peer-to-peer trades but not centralized exchange solutions. As exhibited from the program’s installation documents, OneCoin runs onto a personal blockchain dependent on the ethereum system, based on Xiao Lei, a Beijing-based bitcoin analyst.
So will OneCoin be prohibited?
OneCoin Appears to be on course to having a legal status comparable To this of bitcoin in China. Bitcoin itself is lawful in the country, but Trading it’s mainly restricted. Hopefully China’s cryptocurrency fans will be able to participate in the coin community in a non-restricted way in the future.