As a researcher with extensive experience in the cryptocurrency sector, I find the situation surrounding Feixiaohao intriguing yet concerning. Having closely followed China’s regulatory landscape and its impact on digital assets, it seems that Feixiaohao’s troubles could be a cautionary tale for all players in this space.
It appears that China’s leading cryptocurrency market data provider, Feixiaohao, may be encountering legal issues due to reports suggesting that some of its staff have been taken into custody by the authorities.
According to a report from Chinese media that was shared by journalist Coin Wu, there appears to be speculation that the detention may stem from potential compliance problems or disagreements about the way Feixiaohao conducts its business operations.
It’s been over six months since rumors circulated about the arrest of Feixiaohao, China’s leading platform for simplified Chinese cryptocurrency market data, comparable to Coingecko. The details surrounding this alleged incident and the reasons behind it remain unclear. Numerous cryptocurrency exchanges associated with Feixiaohao have been affected by these ongoing investigations.
— Wu Blockchain (@WuBlockchain) August 30, 2024
Based on the information provided in the report, it appears that authorities in Inner Mongolia have been investigating this Shanghai-based platform for approximately six months. It’s further alleged that some essential team members are currently in police custody. Unfortunately, efforts to reach representatives from this platform for comment have proven fruitless, as reported by various sources.
Feixiaohao functioned as a central hub for gathering data, offering live updates about numerous digital assets and trading platforms. Its main source of income was from listing fees charged to cryptocurrency initiatives seeking visibility on the platform, revenue from ad placements, and profits derived from promotional collaborations with exchanges and project teams.
As a crypto investor, I’ve found myself navigating through uncharted waters due to China’s strict regulations against cryptocurrencies. Although the platform halted its activities within mainland China, these restrictions didn’t mark the end of our challenges.
The report indicates that Feixiaohao has faced past examination due to its involvement in dubious transactions and fraudulent tokens, potentially triggering an investigation. To illustrate, in November 2021, Wu pointed out that the platform had publicized the Squid Game token, which was linked to a popular Netflix series; however, it later turned out to be a ‘rug pull’.
“CryptoGecko, known as Feixiaohao in Chinese, placed a significant ad for the popular show ‘Squid Game’ on the Hoob exchange. However, it’s worth noting that Squid Game’s 24-hour trading volume has dropped by approximately 33%.”
— Wu Blockchain (@WuBlockchain) November 8, 2021
At present, there’s a team calling itself Feixiaohao, yet a report suggests this team isn’t the genuine one. Instead, it seems plausible that this new group got hold of Feixiaohao’s source code and are trying to carry on their work under the Feixiaohao label.
Since labeling crypto transactions as illegal in September 2021, Chinese authorities have persistently tightened their grip on the entire digital asset sector. In 2023, more than 42,000 individuals have been charged for their part in fraudulent crypto-related activities within that country.
As I’ve been observing, China has persistently seen an uptick in cryptocurrency-associated offenses, as per the reports from crypto.news.
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2024-08-30 13:22