Chinese Angel Investor Regrets Jumping on the Crypto Bandwagon After Losing $2 Million in a Failed Blockchain Project
Many malicious actors allegedly ‘killed’ a once promising cryptocurrency project in China through price manipulation. The project, called Commerce Data Connection(CDC), disbanded its team and left retail investors empty-handed.
Yang Ning, the founder of CDC and a well-known angel investor in the country, expressed regret about getting in the crypto space and decided to re-embrace traditional investment after the blockchain project failed.
CDC bills itself as the first blockchain-based decentralized global consumer sharing network, and issued 10 billion CDC tokens in February. The token got listed on Huobi Korea on May 21. But for now the firm’s website and the white paper were erased.
Delisted by Huobi
The cryptocurrency exchange Huobi Global announced on November 5 that the CDC team was found to had violated the rules of the exchange whereby the the total locked amount of CDC tokens was inconsistent with what the team was promised in the white paper.
Hence the exchange suspended all trading and deposit services of CDC, and required CDC holders to withdraw tokens to their personal digital asset wallets or other trading platforms.
Further, other sources disclosed the CDC team had gone missing after an alleged “exit scam” because it disappear from all social media platforms .
Now the token price has plummeted to 0.00104 yuan from its listing price of 0.43 yuan, according to the crypto analytics site Feixiaohao.
All important information has been removed from the website, except a brief statement. “ Some community members have been found to maliciously manipulate the token price, so the team decides to dilute the value of tokens held by these bad actors . This move will lower the cost to hold tokens by the community and stimulate the market to grow healthy,”the statement reads.
“I’ve suffered large losses and the team was disbanded,” Yang Ning said in an interview with Chinese blockchain news outlet, “ 35 percent of tokens are in circulation, while bad actors control 20% of the sum.” He admitted he’s lost 2 million USDT in this project alone.
Yang also serves as the co-founder of LeBox Capital, a venture capital firm that makes early-stage, and is the former chief technology officer of Sohu, China’s leading online media, video, search and gaming business group.
Following the miserable experience, yang claimed the biggest mistake he had made for this project is not setting token lockup period. He decided to leave the space and deleted all contacts related to the cryptocurrency industry. “ I’m bullish on blockchain, but relevant activities must comply with regulatory frameworks.” Yang said,” I prefer coinless blockchains.”
He added that he is pessimistic about all public blockchains and the current blockchain industry is doomed to die. “ I will still invest in good blockchain projects, but investing in equity rather than tokens.” Yang said.
But the angel investor did not answer a host of key questions, including who are those bad actors, why did the CDC team disband, what’s the progress of the project, among others.
He denied the wrongdoing on their part, but blamed the failure on malicious actors. In fact, CDC has a fairly strong team with members having rich experiences in technology and finance industries. And it was well-received earlier this year, and was supported by a host of China’s leading token funds, including Node Capital and LeBox Capital. In the end, CDC turns out to be an exit scam.