November 27, 2022

Chinese regulators launched an investigation into the blockchain fitness app Qubu

The authorities of the Chinese province of Hunan are investigating the activities of the blockchain application for fitness Qubu in connection with reports of illegal fundraising and financial fraud.

There are some tokens in the application -"Sweets" that are issued to users when completing the task of walking 4,000 steps for 45 days. According to regulators, these “sweets” are a financial instrument with a promise of profit of 36.8% in 60 days.

Qubu application has a user base in95 million users, with a registration fee of 1 yuan. The number of tokens is limited to 1 billion units, while the application has an integrated market where “sweets” can be sold and bought for real money. Commissions for trading in this market can reach 25% -30%.

One user invested about $ 2,150 with the hope of profit, however, after the investigation, his funds are likely to be lost.

Although the developers claim to use inblockchain application, technical observers believe that Qubu has little to do with distributed registry technology. This is not surprising, because of the 25,000 blockchain companies in China, 70% only tried to release their cryptocurrency and only 4,000 worked on practically applicable blockchain applications.