The Android competitor of Apple, Xiaomi, which is currently in the top-5 list of the best electronic device companies, according to Forbes, is launching its IPO next week, on the 9th of July. The $4.7 million worth of company shares will go for public sale. However, will the IPO turn into an ICO? Let’s figure it out.
It turned out that a Moscow company, called Blackmoon, is planning to release their own tokens, which are supposedly going to be linked to Xiaomi shares. The CEO of Blackmoon stated the following:
“The price of the Xiaomi token is determined by the price of Xiaomi share on the IPO, plus the corresponding commissions. We only accept cryptocurrency and convert it into US and Hong Kong dollars.”
Basically, the process will go in the following way:
- an investor purchases Blackmoon tokens
- Blackmoon employees purchase Xiaomi shares in the amout equivalent to the amount of tokens bought
- an investor receives the profit from his/her investment in cryptocurrency
Everything seems normal at first glance. However, the representatives of Xiaomi actually claim that their company has nothing to do with this endeavour and does not approve of the token sale of Blackmoon. Blackmoon refused to give any comments on the matter.
All of the abovementioned makes the whole situation quite doubtful. Some people believe that the little-known company is just trying to promote itself using the popular brand. Thus, the whole ICO things may turn out to be a scam, so we advice anyone who is planning to buy Blackmoon’s tokens to be very careful and conduct a thorough research before making any investments.
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