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Blockchain-Affiliated Chinese Firm Records $45M Revenue in Q3

ยท in Crypto News
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

Xunlei, a Chinese blockchain-affiliated firm has released its third-quarter report indicating an increase in revenue. The company has been specializing in desktop software development but recently started offering blockchain based services.

In the report, Xunlei said it had recorded a year-over-year revenue increase that was slightly higher than 1 percent to reach $45 million in Q3.

Why Turn To Blockchain?

After switching to the blockchain, services in the cloud and internet sectors saw an 8 percent increase accounting for $19.8 million of the total $45 million in revenue. The report compared the revenue reported in the same period in 2017.

According to Chen Lei, CEO, Xunlei group:

“During this quarter, we increased our investment in shared computing, the blockchain, and deepened our partnership with corporate partners. Strategic relationship. We believe that blockchain is a technology that can change our lives, and we will strive to make blockchain technology available in different areas more simply and cost-effectively.”

The report also mentioned ThunderChain, a blockchain product launched this year among other deals and partnerships.

Xunlei turned to the distributed ledger technology in late last year when its software development activities led to loses for two consecutive years. The Link Token was their first product on the blockchain.

The token was to be used to purchase some services from Xunlei. This led to a seventy-five percent surge in the company’s share price on the Nasdaq stock exchange.

Its share price then spiraled down when the Chinese government prohibited initial coin offerings in November 2017. ThunderChain Open Platform and StellarCloud blockchain products were later launched at the beginning of 2018. In the second quarter, Xunlei’s CEO indicated a 70% year-over-year revenue growth.

Xunlei has signed a partnership with the leading media group in the country, People’s Daily, to build a technology innovation laboratory. The collaboration will also see Xunlei and People’s Daily use blockchain to create a seminar, competition, and workshop organizing platform.

Also, the third quarter of 2018 has seen several crypto and blockchain-related businesses realize an increase in their revenue. They include GMO Internet and Hut 8, a mining company based in Canada.

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