For his announcement, Xiaolai used Weibo, the biggest domestic social media network, where he claimed that he no longer plans investing in the industry of blockchain innovations, as well as ICOs.
According to his own words, Xiaolai intends to consider some major changes in his career, and that he is not planning to take part in any of the projects any time soon.
The cryptomarket has suffered its fourth and worst correction, going through an 80% value drop over the last nine months. However, most of the initial coin offering and blockchain projects have had the majority of their possessions either in ETH or in BTC during the bearish cryptomarket, and the token sale market still shows activity.
Such a sudden decision to leave the sector of token sales and blockchain technologies was most possibly stimulated by two key factors, which are the policies of China regarding the ICO market, and a substantial rise in the scamming activities taking place in the market of blockchain innovations.
Still, Li and his venture capital firm possess a substantial amount of BTC currency, as well as many other digital currencies. According to some estimations, the total worth of the BitFund’s possessions accounts for more than a billion US dollars.
Nevertheless, the financiers’ reputation has been damaged when he resigned from the position of a managing partner at the Hangzhou Xiong’An Blockchain Fund. The decision was probably taken to restore his brand value and get rid of any links between his fund and illegal blockchain startups.