Alibaba Denies Lolli Bitcoin Reward App Partnership, Yet Lolli Claims They had a Contractual Agreement
Alibaba recently made headlines for its humongous sales of whopping $38 billion. However, the single's day sale also created quite a controversy where a Bitcoin rewarding app called Lolli which gives back a certain percentage of the amount spent on shopping via their platform in Bitcoin to their customer.
Now, Lolli has responded to the denial of any partnership with Alibaba, saying that the firm did have a contractual agreement with Alibaba which the Chinese online marketplace broke after running their service on their platform for 24 hours.
Alex Adelman, CEO of Lolli refuted Alibaba's claims saying,
“We’ve been partnered with Alibaba Group since May through AliExpress. We have driven AliExpress significant revenue and distributed bitcoin rewards to our users. Lolli and the agency representing Alibaba.com mutually agreed to launch this partnership in conjunction with Singles’ Day,”
It was earlier reported that Lolli would offer a 5% cashback to the users in Bitcoin if they shop using their affiliate program on AliExpress on Single's day.
Why Alibaba would Deny a Partnership it Signed Under a Contract
It's no secret that China even though recently announced its intention of becoming a world leader in blockchain space and is also slated to launch its national digital currency. However, the government imposed a ban on the use of any cryptocurrency back in 2017 as it believed foreign currency like Bitcoin would interfere in their economic sovereignty.
It's no secret either, that China is an authoritarian state where the government has power over almost every entity and thus it's claimed that all big corporations have a direct affiliation to the state itself. So, Alibaba being the largest online marketplace going against the orders of the government would have dire consequences. It was earlier claimed that even though some of these businesses and companies do see cryptocurrency as an investment channel, they maintain a safe distance given the regulatory obscure surrounding it.
AliPay recently made it clear that they don't want anything to do with Bitcoin and will ban any transactions involving it. They wrote,
“If any transactions are identified as being related to bitcoin or other virtual currencies, @Alipay immediately stops the relevant payment services.”
However, Adelman maintained that they did nothing wrong on their part and Alibaba denying a partnership that they agreed upon, put their brand under a bad light. He explained,
“Alibaba.com trialed our services for 24 hours and decided to deactivate the partnership without cause — breaking its contract […] The agency representing Alibaba.com approved a contractual agreement on behalf of Alibaba.com that included the promotion of Alibaba.com, the use of its brand, email marketing, and sharing on social media and various channels. There was no malintent on our end to misrepresent Alibaba.”