Smartphone Manufacturer Xiaomi says it Disowns the ICO Pegged to Its Stock

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Smartphone giant Xiaomi announced it has no connection with an initial coin offering (ICO) scheme that is selling a token that is selling a token that is supposed to peg to Xiaomi’s stock price in its upcoming ICO.

Currently, the firm is scheduled to go public on the main board of Hong Kong Stock Exchange on July 9. It has aimed to raise $4.7 billion, Xiaomi’s IPO is known as one of the most notable public offerings in Hong Kong this year. The IPO seems to drawn interests from at least one of the companies from cryptocurrency world.

One of Russian based blockchain investment firms named Blackmoon declared on June 22 that it is offering a token called BMxXMI, whose price will be pegged for Xiaomi’s stock price following its IPO on a dollar-for-dollar basis.

South China Morning Post¬†reported¬†that Xiomi has no knowledge of the scheme at all and didn’t approve or authorize the token offering project.

Blackmoon’s website says ‘by contributing to the ICO with bitcoin, ethereum, and litecoin, investors would be able to get exposure to Xiaomi’s stock performance without having to own the underlying equity directly.’

Blackmoon included it will convert the smut raised from the ICO into fiat currencies and transfers for its brokers who will be purchasing Xiaomi’s stocks from the secondary market on behalf of the investors.

After an initial 93-day lock-up period, the firm told investors holding BMxXMI can sell the token through brokers again who would execute sell orders of the stock on the exchange.

Nevertheless, Blackmoon hasn’t revealed information of the brokers who would act on investor’s behalf like their names and whether they are licensed broker and dealer for participating in the Hong Kong financial market.

The company refused to reveal the details of its banking and broker partners calling confidential agreements.

The company told:

“The offering is aligned with the requirements of the jurisdictions in question.”

Suzat Fernandes

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