Chinese Millionaire Buys 27% of US Blockchain Company

Seven Stars Cloud Group, a Chinese cloud technology company founded and run by entertainment mogul Brian Wu, saw its stock rise by over 25% on Nasdaq after announcing its purchase of 27% of the stocks of Delaware Board of Trade Holdings last week, according to a report from Bitcoin.com.

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One of China’s biggest business and entertainment moguls has through $SSC purchased a 27% stake in the Delaware Board of Trade, a 'dark pool' operator & plans to expand into the trading of 'bitcoin-like' securities $BTC.X #CryptoNews

— Jon Najarian (@jonnajarian) December 20, 2017

Delaware Board of Trade Holdings is an American company that develops trading systems for the financial industry. According to its website, it is the "first and only Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term based Alternative Trading System fully licensed by the SEC".

According a Seven Stars Cloud press release, the deal's purpose is to create a new network - the 'Initial Exchange Offering Network', or IEO. Seven Stars Cloud will use its blockchain-based product 'NextGen X', combine it with DBOT's alternative trading system, and thus "differentiate itself from, other digital currency bsed ICO platforms".

DBOT CEO John Wallace said: “We are thrilled to further partner and form a deeper business relationship with SSC as DBOT and its various business lines become key engines that power SSC’s Global Trading Platform Network for Initial Exchange Offerings.”

Seven Stars Cloud is owned by Bruno Wu, one of China's wealthiest businessman. Nicknamed 'Mr. Chinawood', 51-year old Wu last year bought a majority share in a media company called YOU On Demand, formerly owned by professional wrestler Shane McMahon, according to the New York Post.

Wu said in a company press release last week: "In this case of Seven Stars Cloud, we are applying Blockchain and Artificial Intelligence to create a hybrid solution for supply chain finance, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and asset-backed digital securitization. And these are only the first massive opportunities and markets we are targeting, with more plug and play opportunities to be announced in 2018."

The purchase will make him the controlling shareholder of DBOT.

The Securities and Exchange Commission is yet to comment on the acquisition. The reaction of the regulator will be of interest given that it stopped a move by a Chinese firm to buy the Chicago Stock exchange earlier this year due to concerns about a lack of transparency.