The founder of one of the most influential Chinese cryptocurrency investment companies has announced that he will no longer invest in any kinds of projects associated with the industry. The move follow China’s recent crackdown on foreign cryptocurrency exchanges.
Farewell, Cryptocurrencies
Li Xiaolai, the Chinese billionaire investor and founder of cryptocurrency venture capital company BitFund, has officially announced that he is no longer going to invest in the field.
Posting on China’s microblogging website, Weibo, Xiaolai said:
From this day on, I, Li Xiaolai, will personally 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.
The investor didn’t give any further explanations about his decision. It’s worth noting that his decision comes around a month after he resigned from his position as a managing partner of the Hangzhou Xiong’An Blockchain Fund investment fund that’s worth $1 billion.
Sensitive Timing
The billionaire’s move comes amid a time when regulatory pressure in China is escalating in the field of cryptocurrencies.
The country officially banned all types of cryptocurrency-related commercial activities earlier in August. Not much after that, China went on to ban 124 offshore cryptocurrency exchanges. To make matters even more serious, the country’s central bank issued official warnings on the matter of ICOs and blockchain-related companies.
Xiaolai’s company, BitFund, was launched back in 2013 and had a capital of $3.5 million back in the day. Within just one short year, it managed to grow as one of the most influential Chinese cryptocurrency investment firms. Xiaolai himself is touted as one of the most prominent Bitcoin holders in the country.
What do you think of Li Xiaolai’s decision to leave the cryptocurrency field? Let us know in the comments below!
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