Chinese Bitcoin Tycoon Li Xiaolai Will Not Invest In Blockchain Projects Anymore
BitFund founder and well-known Bitcoin holder Li Xiaolai said that he is going to stop personally investing in blockchain projects.
“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,”
Li said in a Weibo. He went on:
“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.”
As one of the largest bitcoin holders in China, his sudden announcement caused a big stir in the local crypto community. “Mr. Li Xiaolai’s value has seriously been underrated,” one follower commented. While there were supportive comments from Li’s devoted followers, others were doubtful. Though Li claimed to not personally invest in any future projects, some suggest that he might still take part through institutions or investment fund.
The cryptocurrency market has experienced its fourth-worst correction in the past nine years, experiencing an 80 percent drop in valuation within the past nine months. Yet, the vast majority of ICO and blockchain projects have held most of their holdings in Ethereum and Bitcoin throughout the bear market and the ICO market still remains active to this day.
Earlier this year, Li stepped down from his role as managing partner of the $1 billion Hangzhou Xiong’An Blockchain Fund after a series of accusations were made against him. Most notable was his feud with venture capitalist Chen Weixing. Chen previously openly called Li as “tumor” of China’s cryptocurrency industry and later accused Li of owing a group of investors 30,000 bitcoins which he had collected in 2013 for an investment fund.
Li again found himself knee-deep in controversy after the leak of a 50-minute recording of him going off on some of the most well-known players China’s crypto circle and giving tips on how to “cut leeks”— a reference to new investors entering the market that get ‘harvested’ by bigger players.
The decision of Li to abruptly exit the ICO and blockchain sector was likely fueled by two major factors: the crackdown on ICOs by the Chinese government and a significant increase in the number of scams in the blockchain market.