China Information Technology, Inc. (NASDAQ: CNIT is a leading provider of internet-based ad distribution and ad display terminal sharing systems in China. CNIT stock is in rally mode today, up 6% at the time of this writing. Why is CNIT stock rallying like this? Well today CNIT announced that it has initiated in-depth research on the application of blockchain, aiming to innovate the Taoping new-media sharing ecosystem, and to deliver higher returns to Taoping ecosystem partners and users. This has CNIT stock flying.
What will it do
CNIT will conduct research on the application of blockchain into the Taoping ecosystem, to find out a more efficient and secure solution for payment transfer, and a better mechanism to collect internal data and reward end users. With the existing loT technology and the future application of blockchain, it is expected that CNIT will be able to upgrade the accuracy of advertising distribution on ad terminals, to improve the users’ experience and ultimately, reinvent the profit distribution mechanism to vertically integrate industry resources.
How it will help
Consumers can use Taoping Net and Taoping (淘屏) App to buy and distribute real-time ads on more than 10,000 terminals now. The terminals are currently available in ten cities of China, including Shenzhen, Guangzhou, Shanghai, Ningbo, Nanjing, Quanzhou, Changde, Wuhan, Zhengzhou, Kunming, and will soon be accessible in more metropolitan areas. Taoping ecosystem is growing and aims to become one of the largest domestic ecosystems in the advertising industry in the near future.
“We believe that the research on blockchain is a promising opportunity for us,” said Mr. Jianghuai Lin, Chairman and CEO of CNIT, “As the developer and leading operator of the Taoping ecosystem, we keep up with the development of new technologies as we are devoted to keeping upgrading and optimizing our services.”
Our take on CNIT stock
We believe that CNIT stock can be bought for a trade here. Most names that get involved with block chain have a nice spike for a few days, only to give back portions of the gains days later. Tread carefully.