#blockchainvalue

The term “red door 开门红” refers to an event with a strong start. The expression fits particularly well with the start of the gregorian calendar year, with President Trump stating (yet again) that the US had reached a “very large and comprehensive” deal with China. At the same time, the People’s Bank of China cut the required reserve ratio by 50 basis points, further lowering the cost of borrowing. Both pieces of news powerfully affected the stock market, and many stocks saw red doors open on day one of 2020.

One other, especially bright, red door is the Shenzhen Stock Exchange’s newly launched Blockchain 50 Index. The index is composed of the top 50 public firms listed on the SZSE that have announced blockchain projects; they’re sorted by average market cap over the past 6 months. From software companies, such as e-commerce, fintech, saas, logistics, and insurance, to hardware companies, such as mining and home appliances, the index represents a hodgepodge of firms that have different core business models, despite being “on the chain 上链.”

Since its debut, the index enjoyed seven days of surges interrupted by only one day of decline. But these surges, are not the result of the firms’ positive, blockchain-charged financial outlooks.