As of morning trading, shares in Chinese software company Xunlei Ltd. (NASDAQ:XNET) sank a whopping 12%. In the past two weeks, the stock has sunk a collective 40%. Why? Cryptocurrency.
Xunlei introduced its “wake coin mining” cryptocurrency project on Oct 12th, rendering it one of the small listed firms to boom this year as Bitcoin and other cryptocurrencies surged in value.
Xunlei stated on Wednesday, “Wankebi is a kind of digital asset and can be used on the company’s internet properties and should not be traded on other transaction platforms.”
However, other legal experts on cryptocurrencies stated that the company’s digital coins were still likely to wind up being traded on secondary markets.
“Even though Xunlei has repeatedly said that OneCoin has nothing to do with ICOs and that it doesn’t conduct trading on a trading platform, in reality, if OneCoin can be transferred between user accounts, it is unavoidable that a third-party platform provides OneCoin trading services” Yang Dong. a Beijing-based legal expert stated.
Concerns over that issue, and infighting with sister company Shenzhen Xunlei Big Data Information Services Company, in which Xunlei holds a 29% stake, have propelled volatility for the stock.
Featured Image: twitter
