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Update: Giant Network Invest $27.2 Million For 14% OKEx Share

According to Tencent Technology, Giant Network and Weiyi Capital has become the latest shareholder of Beijing Oukai Lianchuang Network Technology Co., Ltd, which is the only shareholder of OKCoin. Search result from business administration authority indicates that Giant Network has 10% of OKCoin’s share and Weiyi Capital owns 1.5996%. The business license of Beijing Oukai Lianchuang was updated on 31 October, 2017. Previously, Shi Yuzhu, President of Giant Network, has defended Bitcoin’s significance upon  “ICO ban” in September 2017.

Giant Network is a online gaming company listed in Shenzhen Stock Exchange(SZ:002558) with market cap at 76.1 billion yuan(~11.5 billion USD). However, Shi Yuzhu is even better known in China for his personal ups and downs. On 9 September 2017, he first talked about Bitcoin to his 7.89 million followers:

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“We should not demonize bitcoin. Something that we do not understand is not necessarily all bad things. If there is illegal conduct in the trading of Bitcoin then these illegal deal should be cracked down instead of total ban of bitcoin trading. Even if Chinese are not allowed to own bitcoin, foreigners will continue to hold it. Maybe in the future even a portion of some foreign exchange reserves will be distributed to bitcoin. The blockchain technology will bring profound changes in areas such as finance and everyone’s life. ”

 

He also denied possession of bitcoin:

“Disclaimer: I personally do not own any bitcoin.”

The weibo was reposted 1,878 times and received 3,135 comments, among which the top 4 are:

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“Which country’s currency is bitcoin? Who will be responsible for its credit?
“What’s use of bitcoin? Money-laundering, tax-evasion and transfer of funds. These are illegal and should be banned. If you have such needs, you will support bitcoin.”
“Those who criticize Bitcoin is either poor or under-educated!”
“Fiats are backed by national sovereignty, what backs bitcoin other than utility bill? ”

 

These mostly-upvoted comments reflects the general public perception on bitcoin: Bitcoin is evil.

 

Shi Yuzhu is a legendary figure in China. He started from scratch became a billionaire by software development. He once ranked #8 on the richest list by Forbes. However, his company went broke overnight and his debt was up to 250 million. After painful reflection, he returned the market and gained significant market share in health products, online games, investment etc. Shi Yuzhu is considered a successful model for Chinese entrepreneurs. His defense has already hinted his interest in bitcoin and blockchain technology, which is converted into becoming a shareholder of OKCoin. According to the public information of Oukai Chuanglian Company, the Giant Network has 10% of its share and Shanghai Weiyi Capital has 1.5996% share.

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OKCoin’s Shareholding Structure (credit:qichacha)

Aside from Shi Yuzhu, Wang Yawei, Godfather of private equity investment, is also found connected to OKCoin through his child company: Shanghai Weiyi.
Wang Yawei achieved 10 times yield in 7 years when he was working as manager in public equity fund. In May 2012, he resigned and set up a private equity fund in Shenzhen in September 2012. Due to outstanding performance of the equity funds, he is known as the godfather in the private funding industry.
The two latest participants are from traditional investment business. The entrepreneurship and visions allow them to see beyond the public’s conception.

Update on 18 December:

According to Sina Finance, Giant Network has invested 184,142,388.57 yuan(27.2 million USD) on OKCoin to acquire 14.00% of its share.
Below is the official statement from OKEx:

OKEx, a world-leading digital asset trading platform, has raised tens of millions of dollars in the new funding round in early 2017.

The investment is being led by Giant Network Group (founded by Yuzhu Shi), Qianhe Capital Management (founded by Yawei Wang), eLong Inc. (founded by Yue Tang), Longling Capital (founded by the Chairman of Meitu Inc., Wensheng Cai) and existing investor Ceyuan Ventures.

Based in Belize, and with its main operation hub located in Hong Kong, OKEx is an international company specializing in blockchain technology & digital asset development and applications. Its flagship platform OKEx.com, focusing on digital asset-only exchange, also provides fiat-to-cryptocurrency, cryptocurrency-to-cryptocurrency and derivatives trading services to global customers. While OKCoin.com focuses on facilitating fiat-to-cryptocurrency trading, including but not limited to USD, JPY, KRW and EUR.

By using the peer-to-peer technology, blockchain is best-known for its role in facilitating payments transactions with digital assets. OKEx believes the innovation will revolutionize human lives. As the world’s digital asset market has entered a new phase of development, OKEx will allocate the newly raised capital strategically and responsibly, and continue to serve customers to the best of their ability by putting more resources on product and service innovation.

In the next three months, OKEx’s trading platform will undergo a major system upgrade and will provide significant enhancements to customer experience. Substantial progress has already been made in its applications of digital asset trading licenses across the globe.

OKCoin.cn, previously one of the biggest RMB to Bitcoin exchange platform in China, and OKEx are two companies and teams that operate independently of each other. To comply with China’s cryptocurrency regulations, OKCoin.cn has already completed the assets withdrawal of customers, and transformed into a blockchain technology research company, which is currently working on blockchain projects with several financial enterprises.

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