Chinese Retailer Surges 25% After Saying It Will Accept BTC

09 January 2018   434

LightInTheBox, online retailer which sells goods ranging from wedding dresses to electronic devices announced on January 5 that cryptocurrency is a legitimate means of payment on its main sites, LightInTheBox.com and MiniInTheBox.com. It is stated that all transactions would be processed through BitPay.

I’m glad to introduce bitcoin as a new payment channel to our customers. We think blockchain could potentially be an important technology for us.

Alan Guo
CEO, LightInTheBox

Right after the announcement the company saw its shares surge from US$2.38 to US$3.52 at the start of trading on Monday. The shares later retreated, finishing Monday at US$2.81.

LightInTheBox SharesLightInTheBox Shares

Before yesterday’s surge, the share price had shed 26% between early January last year and January 2, 2018.

However, LightInTheBox is not the only US-listed Chinese company to see its share price spike after announcing an interest in cryptocurrencies. Chinanet Online Holdings, a Nasdaq-listed internet company, surged more than 600% on January 4 after it said a day earlier it would collaborate with another Chinese firm to develop blockchain-related technologies.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   128

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.