Reports have emerged that an initial coin offering (ICO) made recently by a little-known Chinese company was supported by a former Macau gangster who made $750 million for himself within just 5 minutes after the offer was launched.
The South China Morning Post reports that World Hung Mun Investment- managed by former 14K Triad gangster “Broken Tooth” Wan Kuok-koi, sold 450 million “HB” tokens at three release parties organized in Cambodia, Thailand and Philippines. The company plans to organize a final event in Malaysia on Wednesday and release a total of 50 million more tokens to the public. These 500 million tokens will represent half of the total HB supply.
According to the offer documents, the company hopes to use this capital to sponsor chess and poker tournaments online, including across China’s Hainan province.
Similar to last week’s announcement that the 4,500-year-old game Go will be getting a blockchain backing, it’s not completely known what value cryptocurrency tokens will add to chess and poker tournaments.
Some observers have said that offering cryptocurrencies as rewards in games could take advantage of a gap in local gambling laws. As such, it is believed that Bitcoin or similar coins could be more effective as forms of payment to gamers.
In any case, those tournaments will be developed in partnership with Zhoggongxin Cosmos (Beijing) Internet Technology Limited, a mysterious firm who the SC Morning Post claims may be operated by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).
“You can check the website and other materials online,” a Zhonggongxin Comsos representative told the publication when asked if the company was state-owned. “I’m not at liberty to disclose anything else.”