Financial professionals fleeing from a crackdown on China’s P2P online lending sector are choosing to seek their fortunes in the country’s booming blockchain industry.
The Chinese central government has stepped up its crackdown on the P2P lending sector since the start of 2018, leading to a sharp contraction in the number of active online finance platforms in the country.
Hexun reports that investment, risk control and technological professionals who have withdrawn from China’s onine lending sector are now “pouring” into the blockchain and digital currency spheres as a consequence.
“A conservative estimate would be that over the past half year, at least 300,000 people have poured into the blockchain sector,” said one executive from a Chinese recruitment company.
This figure only encompasses the official data from recruitment firms, and does not include the large volume of entrepreneurs or other personnel who have entered the sector.
Extremely rapid staff turnover has proven to be an issue, with the founder of one blockchain enterprise reporting that “all of the graduates born after 1995 that the company recruits leave within two months…there’s too much urgency in the sector, and it’s basically impossible to retain staff.”
Some domestic experts believe that this flood of talent into China’s blockchain sector is premature.
“At present there is a premature bubble in blockchain talent,” said Pan Helin (盘和林) from the Chinese Academy of Fiscal Sciences. “Under circumstances where the technology has yet to mature and the industry has yet to brighten, it seems like a bit of a gamble to enter the fray like this.”
New P2P Lending Platforms in China Drops 90% in First Half of 2018