OkCoin founder buys Hong Kong-listed firm, seals the deal in $60 million
OKCoin founder, Star Xu, recently bought a controlling share in a Hong Kong Stock Exchange-listed firm. The deal was done for around $60 million and was disclosed by the acquired firm, LEAP Holdings Group.
The deal reportedly completed on January 14 and OKCoin’s parent firm, OKC Holdings Corp., became the controlling shareholder in LEAP Holdings. The Caymans Island-incorporated construction engineering firm is listed on the Hong Kong Stock Exchange (HKEX).
According to CoinTelegraph report, Xu purchased around 3.2 billion shares at HK$0.15 ($0.02) a piece. So, a total cost of $483,890,536 (~$61.6 million). Reportedly, OKC Holdings Corp. owns Leap Holdings’ stock’s 60.49 percent and the same percentage of voting rights.
So, Xu owns the majority stake in OKC Holdings (52.32 percent) though his two firms – StarXu Capital and OKEM Services Company. The OKC Holdings Corp.’s acquisition is more like a reverse takeover or reverse initial public offering (IPO).
In other news, OKEx launched a crypto derivative product in late December which is known as “Perpetual Swap”. It allows users to predict the future value of BTC/USD, with up to 100x leverage. Earlier this month, the crypto exchange added new seven trading pairs for the perpetual swap contracts which include Ethereum (ETH), Litecoin (LTC) and Ripple (XRP).
OKCoin recently listed TRX on its trading platform. OKCoin announced in their blog on January 16, “Starting today, authorized OKCoin customers can deposit TRX, and starting on January 17th they’ll be able to trade TRX against USD, BTC, and ETH.”
Speaking to CCN, Tom Byun, CEO of OKCoin, said that OKCoin spends a lot of time making sure that the tokens listed on the exchange are not securities.“First thing we do, we have to abide by regulations in the US. We are a money service business. We’re operating out of the US. We’re serving US customers. So from a regulatory perspective, that’s the clearest step one to take, so we spend a lot of effort on our compliance team and our legal team to ensure that whatever we list is not a security,” he added.
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