A Chinese entrepreneur was struck down after losing heavily in blockchain investment, his company revealed on October 5.

Zhang Zhenxin, the 48-year old chairman of UCF Group, a multifaceted financial service provider, has reportedly passed away on October 5. UCF Group, founded by Zhang Zhenxin expands its business to Fintech, healthcare, investment, even to blockchain.

Early in 2016, the fierce global speculation of blockchain and cryptocurrency attracted Zhang Zhenxin to involved. He firmly believed that blockchain technology is a subversive innovation after steam engines, electricity and the Internet.

As a strong believer of blockchain, Zhang invested in the area of mining machine, mining farm, crypto exchange, Tokenfund. Besides, he employed several well-paid experts in blockchain as advisers.

In 2017, UCF Group bought crypto mineral projects all over the world, including some crypto miner manufacturers like Bitfily as bitcoin price skyrocketed. However, Zhang Zhenxin was used to delegating business and rights to trusted people, while he is only in charge of business strategy. As a result, the situation of ” abuse power for personal gains” is frequent.

Description of Blockchain Business Income in 2017

According to its financial report, in the first four quarters of 2017, the income of the blockchain for UCF Group was 289 million Chinese yuan. In just three months, the blockchain contributed nearly 300 million Chinese yuan. At this time, UCF Group began to turn the blockchain into its core business. After the third quarter of 2017, the blockchain business was juxtaposed with traditional payment business, loan business and wealth management business, which is called the UCF ‘s 3.0 strategy.

Financial Report of the First Quarter in 2019

In 2018, as bitcoin bear market run with bitcoin price plunged, UCF Group also faced huge losses in the area of blockchain. Zhang had to sell crypto miners in hand at an extremely low price. It is estimated that the money lost in its blockchain business is about billions of dollars at least.

It is extremely forward-looking for UCF to actively investing in the emerging sector of the blockchain, and recognizes the prospects and potential of the blockchain industry as a capital giant. However, it is ridiculous for UCF to purchase crypto miners in large quantities at the bull market climax, while selling miners at low prices in the bear market. Whether for individual investors or large institutions, the timing of layout is in the bear market, while the timing of selling is in the bull market.