Several weeks ago, China’s President Xi Jinping embraced blockchain technology. Despite this fact, Chinese authorities continue to crack down on the crypto mining companies. Regulators in the autonomous province of Inner Mongolia are going to check whether companies are following the rules or not. This information shows that companies in China are still facing a lot of problems even though the president embraced the blockchain technology. Contrasting information creates additional problems for the cryptocurrency market.
According to the information, cryptocurrency mining companies that have nothing to do with “real economy” will be targeted in these inspections. This news is alarming because it creates additional pressure on the companies. Due to the problems connected with crypto mining in this province, many companies left the region. Moreover, some of them relocated their businesses to Southeast Asian countries such as Singapore.
This is happening at a time when China plans to spend more than $2 billion on blockchain in 2023.
Venture capital firm and cryptocurrency market
Venture capital firm Andreessen Horowitz directed a $25 million funding round for crypto lending startup Compound.
The compound is a decentralized finance (Defi) lending protocol. This startup raised $25 million in cooperation with the Andreessen Horowitz. Other famous companies also participated in this funding round, such as Paradigm, Bain Capital Ventures, and Polychain Capital.
Based on information from the Compound’s CEO and co-founder Robert Leshner, after the latest funding rounds, the company’s asset reached more than $150 million. Leshner said the company is going to spend $25 million to make its service more accessible for ordinary people.
The San Francisco-based startup, Compound is an automated crypto lending platform. One of the main functions of this startup is to work with big customers.
However, in the future, Compound plans to cooperate with crypto exchanges, wallets, etc. By the end of 2020, this startup is going to integrate with these additional crypto platforms.