Key Takeaways
- The extended detention of Feixiaohao’s team members suggests that the authorities may be treating the case as more serious than initially anticipated
- In November 2021, the platform was linked to the promotion of the Squid Game token, which turned out to be a scam.
The Feixiaohao team, which runs one of China’s largest cryptocurrency data platforms, is currently under investigation by the Inner Mongolia police. Reports indicate that the investigation has been ongoing for over six months, and key members of the team have been detained. This situation has raised concerns within the cryptocurrency community about the future of the platform.
As per media reports, efforts to reach representatives from Feixiaohao have been unsuccessful. The extended detention of Feixiaohao’s team members suggests that the authorities may be treating the case as more serious than initially anticipated. In China, detentions that last beyond 37 days often signal that serious charges could be involved.
Despite the ongoing investigation, Feixiaohao’s platform continues to operate, though with noticeable delays. Crypto data is still being updated, primarily through automated systems, but areas requiring active human input are lagging. This has led to concerns about how long Feixiaohao can continue operating under these conditions, with some speculating that the platform may not survive into the next year.
Feixiaohao, launched in August 2017, has established itself as a significant player in the Chinese cryptocurrency market. The platform is often compared to CoinGecko for its comprehensive tracking of cryptocurrency data. It generates revenue through listing fees, advertising, and partnerships with cryptocurrency projects and exchanges.
The exact reasons behind the investigation remain unclear. However, Feixiaohao has faced scrutiny in the past for its involvement in promoting questionable projects. For example, in November 2021, the platform was linked to the promotion of the scam Squid Game token.
Media reports citing a local crypto channel on WeChat, stated that multiple key members of the Feixiaohao team had been taken into custody by Inner Mongolia police.
While the investigation is ongoing, Feixiaohao’s website continues to post new content, with the most recent updates dated August 30. Data from traffic monitoring service SimilarWeb shows that Feixiaohao had around 200,000 monthly visits in July 2024, with China accounting for 23% of those visits.
China has always had a tougher stance on the crypto and digital asset sector. It does not allow crypto to be used in any way that could be considered to replace fiat-based transactions or business-related services. Crypto trading has been subject to strict government-imposed restrictions in China since September 2017, when trading platforms were shut down.
