Bitcoin magnate Li Xiaolai’s foul-mouthed tirade

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China’s many high profile bitcoin tycoon called out numerous huge names in the country’s cryptocurrency space as “cheaters”in a foul-mouthed tirade that has reignited a dispute in the country over whether digital cash is the future of finance or simply speculative hype.

The 50-minute recording of Li Xiaolai, a controversial English teacher-turned investor in Beijing, was dripped to Chinese social media on July 4.

In the recording, Li slammed a few of the country’s biggest crypto start-ups as scams.

His targets consisted of Binance, the world’s biggest crypto exchange by trading volume, and NEO, a leading cryptocurrency with a market cap of over US$ 2.5 billion ($3.65 b).

Li Xiaolai, Chinese bitcoin magnate. Photo/ supplied

Typically dubbed China’s wealthiest bitcoin billionaire, Li is the founder of Beijing-based venture capital company Bitfund.

Last July, Li raised a record-breaking US$ 80 million in a preliminary coin offering (ICO) in China, two months before the government stated the unique fundraising approach unlawful

An ICO is a form of crowdsourced fundraising that utilizes cryptocurrencies.

Understood as digital currencies, or virtual currencies, cryptocurrencies work as a medium of exchange utilizing encryption to secure transactions and for producing (understood as mining) additional units.

Chinese bitcoin miner Canaan dumps US for Hong Kong IPOThe South China Early Morning Post has actually not been able to independently validate that the recording is Li and he did not react immediately to a demand for remark sent to his Weibo account.

However, Li indirectly acknowledged the authenticity of the recording, which was secretly taped throughout a personal event previously this year, by means of a post on Weibo.

“When I speak privately, I utilize great deals of swear words,” he stated.

“I don’t have to take care of my own feelings.”

And the recording quickly set off a war of words in China’s crypto neighborhood, as competing investors and entrepreneurs took to social networks to react to Li’s remarks.

“In a cheater’s eye, everyone is a cheater,” composed Binance’s co-founder He Yi on Weibo.

In the recording, Li bills himself as a money cow and star tutor for his previous employer New Oriental, a New York-listed education organization.

In response, New Oriental creator Yu Minhong wrote on Weibo stating that he has absolutely nothing to do with Li or crypto financial investment.

Speculation “provides no important services, and is ruled out by New Oriental or me, even if it can make individuals rich overnight,” he said.

The recording exposes Li’s mentality on crypto investing.

“Whether it’s speculation or investment, you achieve success only if you make money,” Li states. He also describes mom-and-pop crypto investors as “leeks”, an online term denoting market newbies who get “harvested” by deep-pocketed investors like himself.

China to mark out cryptocurrency trading completely with restriction on foreign platformsThe occurrence throws a spotlight on the shadowy world of China’s crypto space.

The government banned ICOs and shut down all local crypto exchanges last September, and subsequently punished crypto mining.

Most Chinese crypto players have actually moved their operations overseas, however crypto trading still flourishes in China through channels such as online chat groups.

– South China Early Morning Post