A billionaire, a crypto-tycoon, and the biggest investor in blockchain projects Li Xiaolai said that he stops investing in Initial Coin Offerings (ICOs) and in any other blockchain projects. As Li Xiaolai is the most influential businessman in the Chinese crypto world, his name is associated with nearly 99% blockchain startups. He also advised users to ignore projects that have his name on it.
“From this day on, Li Xiaolai personally will not invest in any projects (whether it is blockchain or early stage). So, if you see ‘Li Xiaolai’ associated with any project (I have been associated with countless projects without my knowledge, 99% is not an exaggeration), just ignore it. I plan to spend several years to contemplate on my career change. As for what I’m doing next, I’m not sure just yet.” – he announced on the largest chinese social network Weibo.
There could be several reasons for Li Xiaolai’s decision. The ICO situation in China is far from idyllic. The People’s Bank of China banned all ICO activities last September:
“Virtual currency is essentially an unauthorised illegal public financing and is suspected of illegal sale. Subordinated currency tickets, illegal issuance of securities, and illegal criminal activities such as illegal fund raising, financial fraud, and pyramid schemes.”
Moreover, this year Li has been accused by his arch-enemy venture capitalist Chen Weixing of being “tumor” in China’s cryptocurrency industry. Later Chen accused Li of owing a group of investors 30,000 bitcoins which he had collected in 2013 for an investment fund.
Nevertheless, many users hoped that Li would continue investing in projects not as an individual but through funds and institutions.
Check out our post about the ICO situation in China.