Chinese Company Xunlei Rakes In Major Revenue Due To Blockchain

The Chinese company Xunlei, which offers desktop software and blockchain-related services, has reported a revenue increase in their Q3  report, which they claim is all thanks to blockchain services.

The report was  published on 14th November, Wednesday. The recorded revenue in Q3 is $45.3 million, which indicates an increase of 1.1% year-over-year. The firm’s cloud and Internet value-added services sectors are mostly credited with the increased revenue. The report claims that $19.8 million of that revenue is due to the above mentioned services.

The company is primarily known for its P2P software and BitTorrent client. Back in 2017, it focused on blockchain technology development, which has clearly impacted their increase in revenue.

The CEO of Xunlei group, Lei Chen, stated that blockchain is a key investment area for the company, and he said,

“We believe that blockchain is a technology that can change our lives, and we will strive to make it available in different areas in a simpler and more cost-effective way.”

The company launched its blockchain platform ThunderСhain just this year, which has been a huge success. The company has also tied up with certain hotshots including People’s Daily, which is also the official newspaper of the Communist Party of China, in a series of blockchain-related partnerships.

Xunlei emerged as the best performing stock on Nasdaq, shortly after it launched the Link Token, which is its first blockchain-driven initiative. One could pay for Xunlei’s services with Link Token. This too proved to be a successful initiative. The company’s shares saw a period of slump when it came under the microscope of China’s financial regulator, after the state banned Initial Coin Offerings (ICO).

(Read: Ten steps to analyzing ICOs) .

Despite the ban, China’s middle class was investing in crypto. They later launched two new blockchain products called StellarCloud and ThunderChain. The CEO reported that the company saw a $65.8 million in revenue in Q2. It thus comes as no surprise considering the company’s upward curve, that they made it big in their third quarter.