Blockchain Deployment in China Increases Amid Coronavirus
China has shifted to blockchain technology to manage medical data, check the supply of virus prevention materials, and consult the public amid the ongoing coronavirus epidemic.
In the first couple of weeks of February China saw the launch of as many as 20 blockchain-based applications made to help fight the coronavirus outbreak. They used most of the apps to manage citizen’s personal data as a lot of people are going back to work this month.
In addition to that, local authorities indicated that blockchain allows them to track and secure collected information effectively. So, the capital of Shaanxi Province, Xi’an, utilized the tech for online consultation and screening, as well as securely handle health records. Then, in Hangzhou, tech firm Castchain Technology held out a WeChat-based program named Access Pass. And the program generates a QR code that residents use to enter gated communities.
In the partnership of Zhejiang Provincial Health Commission and the Economy and Information Technology Department, mobile and online payment platform Alipay showed a platform. And it lets charity organizations and initiatives collaborate more efficiently and transparently.
Notably, the blockchain app enables users to track the allocation and donation of relief supplies. As well as the review, record, and trace of demand and supply chains of medical supplies.
The Closing of Fcoin
Chinese crypto exchange Fcoin’s founder Zhang Jian disclosed in a post that Fcoin might not be able to pay the 7,000-13,000 Bitcoin (BTC) it owes to users – that is, about $67 million to $125 million.
Based on Zhang, the exchange is not a scam, nor it got hacked. However, evidence shows it might exactly be that.
He stated, ” This is a problem that is a little too complicated to be explained in a single sentence. The time span is also large, and the two-story development lines are advancing and affecting each other at the same time, leading to the final outcome.”
The Problem
Following Fcoin’s launch in May, the exchange’s reported trading volumes became some of the largest in the world overnight. And this is with a new business model, dubbed Transaction Mining. Later on, one Redditor revealed that this was actually fake. The Fcoin order book seems to be crawling with bots. And a Redditor even said that they are continually manipulating the price of FT, describing the exchange as a scam.
Aside from that, the business model was suspicious from the get-go. And there was no airdrop nor ICO at launch. Also, Fcoin distributed 51% of its native tokens to users for reimbursing transaction fees. Then, they incentivized users to transact as often as possible since the platform refunded 100% of the transaction fees, they paid in FT tokens. Approximately 80% of the exchange’s daily revenue from transaction fees were than paid back to users.
Moreover, Changpeng Zhao, Binance’s CEO, has called FCoin a Ponzi Scheme since the middle of 2018. He replied on Zhang’s tweet, “I rarely called out anyone, with exceptions. On Chinese social media, I called Fcoin a pyramid scheme in mid-2018. Their founder calls his own plan a ‘better invention that #Bitcoin.’ That did it for me. Who would say such a thing? About themselves? Except for scammers.”
