A Chinese cryptocurrency billionaire has attacked some cryptocurrencies, and influential figures in the space, after secret recordings were made public. The recordings surfaced on Chinese social media. Li Xiaolai founded Bitfund in 2013 and has invested heavily in a large number of blockchain projects. His net worth is estimated at over USD 3.5 billion.
Neo Worthless, Tron a Scam and Qtum Garbage
The recording was over 50 minutes long, and the following translations have been taken from Asiacryptotoday. The audio is also available from the website.
- “Qtum issued by Patrick Shuai (Shuai Chu) is a Garbage coin, it was me who helped him to promote Qtum for 6 months. Because his scamming method is very simple – If he decided to develop DAPP first, I should have asked him to go out until you brought the finished product to me.”
- “Neo is also a stupid project, worthless.”
- “There is a scamming exchange called Binance and there is a scammer called Justin Sun [Founder of TRON], you can’t be lagging behind them, so you have to work harder and faster”
- “CZ [Founder of Binance)] is not a good guy…He knows very little about technical issues.
- “The founder of blockchain should be least an instant online celebrity, fans-flow is the core competition, the rest of the factors are all bullshit. As long as they believed in you, there will be a common consensus and what you need to do is just continue cheating them”
- “Building Community and looking for hype point are the most important thing in doing a project.”
Li Xiaolai has since acknowledged his comments in Chinese social media and has been apologetic about the language and the phrasing. However, he does not seem to have mentioned anything about the content itself, which is quite vitriolic. He has claimed that a large number of leaders and projects are cheaters and scams. The cryptocurrency billionaire has caused an uproar within the Chinese cryptocurrency community.
The implications of the quotes from the Chinese cryptocurrency billionaire are troubling. The most worrying comments are the last two. The stark reality is that most cryptocurrency investors have no idea what they are investing in, especially when it comes to some of the more recent advances. Hype and community seem to be more important than ethics and technical standards. And with speculation gripping the cryptocurrency industry, many are just eager to make a profit at all costs. They are highly susceptible.
Tron and EOS are two examples of where hype and community seem to be overtaking what could be called common sense. Tron is largely copied from other cryptocurrencies and Justin Sun uses social media aggressively to promote his coin and gain followers. Meanwhile, the governance model of EOS is as far from decentralized as possible. Both have a strong following.
It seems that each new cryptocurrency that is created is one step further away from the initial vision of Satoshi Nakamoto. Earlier coins such as litecoin, IOTA, ether, and DASH appear to have stood the test of time. It may help to remember that bitcoin was launched with no ICO and no figurehead, unlike the majority of its successors.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.