Hong Kong-Listed Blockchain Venture Names China’s Bitcoin Tycoon Li Xiaolai As CO-CEO
Li Xiaolai, a notable blockchain investor and bitcoin tycoon in China, has been appointed as an executive director and the co-chief executive officer of Hong Kong-listed Grandshores Technology Group, a contractor-turned-blockchain investor, according to the company’s announcement released on December 3.
The new appointment takes many by surprise as it comes two months after Li hinted he wished to withdraw from the crypto space and to make a career change.
Often dubbed the China’s richest bitcoin billionaire, Li will take up the key role in Grandshores Technology’s blockchain and digital assets business and be responsible for the the launch of a stablecoin system, the establishment of a public database based on Directed Acyclic Graph(DAG), the development of Trusted Execution Environment(TEE) technologies, among others.
As previously reported by the South China Morning Post, back in September, Grandshores Technology Group planned to raise $12.7 million via a digital token fund to finance a yen-backed cryptocurrency project. Further, the company also wanted to launch stablecoins pegged to the Hong Kong dollar and the Australian dollar in the future. The company hopes to leverage Li’s influence and experience in the blockchain space to drum up its funding and push forward the stablecoin development initiative.
Grandshores Technology Group’s latest financial report shows that the company saw operating income of 113 million yuan in the six months to 30 September, down 10.7% year over year ; its gross profit fell 3.8 per cent year-on-year to 36.8 million yuan. And its blockchain business that is still in the early stage has yet to generate any profit.
The public company, registered in the Cayman Islands, shifted its focus to blockchain after being acquired by a Singapore construction firm called SHIS which is chaired by Yao Yongjie in May. Yao is a founding partner of the the $1 billion Grandshores Blockchain Fund, which has backing from the government of China’s Hangzhou city. But Li stepped down from his role as the managing partner of the government-backed fund after alleged defamatory comments were made against him.
The appointment means Li, a controversial English teacher-turned venture capitalist, has not exited the blockchain sector. On September 30, he said on Weibo that “ from this day on, Li Xiaolai personally will not invest in any projects (whether it is blockchain or early stage). So, if you see ‘Li Xiaolai’ associated with any project (I have been associated with countless projects without my knowledge, 99% is not an exaggeration), just ignore it”. He also added he would spend several years to contemplate on my career change.