Smartphone Giant Xiaomi Disavows ICO Token Pegged to Its Stock

An initial coin offering is selling a token that claims to be pegged to smartphone maker Xiaomi's stock price in its IPO next week.

AccessTimeIconJul 3, 2018 at 10:15 a.m. UTC
Updated Sep 13, 2021 at 8:08 a.m. UTC

Smartphone maker Xiaomi said it has not authorized and has no connections to an initial coin offering scheme that is selling a token which is said to peg to Xiaomi's stock price in its upcoming initial public offering.

The Chinese smartphone maker is currently scheduled to go public on the main board of the Hong Kong Stock Exchange on July 9. Aiming to raise $4.7 billion, Xiaomi's IPO is seen as one of the most notable public offerings in Hong Kong this year. And the anticipated IPO appears to have drawn interests from at least one company in the cryptocurrency space.

A Cyprus-based blockchain investment firm called Blackmoon announced on June 22 that it is offering a token called BMxXMI, whose price will be pegged to Xiaomi's stock price following its IPO on a dollar-for-dollar basis.

However, according to a report from the South China Morning Post on Tuesday, Xiaomi stated it has no knowledge of the scheme at all and did not approve or endorse the token offering project.

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

Blackmoon said it will convert the proceeds raised from the ICO into fiat currencies and transfer to its brokers, who will subsequently purchase Xiaomi's stocks from the secondary market on investors' behalf.

After an initial 93-day lock-up period, the company said investors holding BMxXMI could sell the token through brokers again who would execute sell orders of the stocks on the exchange.

However, Blackmoon has not disclosed details of the brokers who reportedly will act on investors' behalf such as their names and whether they are licensed broker and dealer to participate in the Hong Kong financial market.

In an email response to CoinDesk, the company declined to disclose details of its banking and broker partners citing confidentiality agreements, but stated its offering is "aligned with the requirements of the jurisdictions in question, " including the firm's ability to participate in Xiaomi's IPO and to distribute the tokens.

Xiaomi image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.