Smartphone manufacturing juggernaut Xiaomi has recently denied any affiliation with an ongoing Initial Coin Offering (ICO) by Russia-based company Blackmoon.
In an article by the South China Morning Post, Blackmoon was offering to sell tokens which, it claims, would represent Xiaomi’s shares on a dollar-for-dollar basis. The token had been previously announced earlier and was named BMxXMI.
Those interested in the token sale could use cryptocurrencies like Bitcoin, Ethereum, or Litecoin for purchasing the said shares.
The proceeds will be used for subscribing to Xiaomi’s Initial Public Offering (IPO) in Hong Kong, totaling $4.7 bln. According to Blackmoon, the price of the tokens will be linked directly to how the Xiaomi shares will perform. Furthermore, those who’d participate in the token sale will be able to redeem the said tokens on a monthly basis.
However, a spokesperson from Xiaomi flatly denied any involvement with the token sale. As a matter of fact, the smartphone manufacturer said that it did not even have any knowledge regarding the said sale.
Blackmoon has yet to disclose other valuable information, including an explanation why their statements do not complement with Xiaomi’s. Also, they have yet to announce the brokers who will act on the investors’ behalf.
The alleged trading of Xiaomi’s shares will begin on July 9 on Hong Kong’s stock exchange’s main board.