- Profitable application of promising technology is years away, analysts say
- Xi Jinping’s call for rapid blockchain development creates quick boom and bust for linked stocks
Are blockchain stocks the next big thing for investors? Analysts think not. They smell another speculative bubble.
Blockchain-related stocks went on a wild roller-coaster ride last week, triggered by a surprise push for the technology by Chinese President Xi Jinping.
But profitable application of blockchain is years away, analysts say, and no publicly listed leaders have emerged in a hot sector filled with promising but unproven start-ups.
“It’s too early to make an investment decision,” said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management. “I’d wait to see more solid applications take place first. Those speculative bets will only fall back after the short-term hype.”
An October 25 media report that Xi had said China needs to more rapidly develop blockchain technology set off an investor stampede last Monday into listed companies with even a hint of connection.