(Yicai Global) March 5 -- Kuwo, one of China's popular music streaming apps, and backed by Chinese internet behemoth Tencent Holdings Ltd., denied rumors it was planning to issue a virtual currency yesterday, but added it would be monitoring the latest developments in blockchain technology.

Kuwo was about to release a music blockchain product styled 'Kulian Wallet' to reward people who use the app to listen to or download songs or who recommend it to other music lovers, Techweb reported.

The total amount of Kulian coins -- just like bitcoin -- is pre-determined, meaning that it will be more difficult to buy the virtual currency and its value will continue to increase with the passage of time. Informal testing of the project is currently underway, per the report.

Kuwo denied the report in a statement yesterday, saying it has no plan for an initial coin offering (ICO) now, but it will continue to monitor the development of blockchain technology and explore various ways of applying new technology to music products.

Kuwo's developer and operator, Beijing Kuwo Technology Co., was founded in 2005 and merged into China Music Corp. (CMC) along with another leading music streaming app Kugou Music in 2014. Following its acquisition of Tencent's QQ Music in 2016, CMC now has an almost 70 percent share of China's music service market.