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What Does the Company Xunlei Actually Do?

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What Does the Company Xunlei Actually Do?

A Story About Xunlei CEO Chen Lei, Xiaomi and Blockchain

TMTPost,

5 min read
5 take-aways
Audio & text

What's inside?

Does Xunlei – the Chinese cloud network with cryptocurrency ambitions – represent enormous potential or a bomb waiting to explode?

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Editorial Rating

8

Qualities

  • Comprehensive
  • Analytical
  • For Experts

Recommendation

Riding the cryptocurrency hype, the unprofitable peer-to-peer download manager Xunlei became the hottest stock on NASDAQ in the final quarter of 2017 as its shares increased six times in value. But as the company’s 2018 stock declines show, dabbling in the cryptocurrency business is risky – particularly in China. As Xunlei continues to transition its business focus to blockchain cloud services, TMTPost writer with the pen name Kooogle traces the rocky cryptocurrency landscape and explains the parts that government regulators, skeptical investors and the frenzied enthusiasts play. Xunlei’s venture into the trending cryptocurrency business offers a fascinating look into China’s response to the hype. Kooogle also explains how Xunlei fits into the larger picture of China’s tech world. The article will be a challenging read for people unfamiliar with the blockchain and initial coin offerings (ICOs). Thus, getAbstract recommends it to readers already versed in crypto jargon.

Summary

Xunlei, the Chinese tech company that made its name as a peer-to-peer download manager, was a hot topic in late 2017 and early 2018 – at least among investors. Its shares, which have been trading publicly on NASDAQ since 2014, shot up in value from $4 in October 2017 to $27 in November 2017. This was like a rise from the dead for Xunlei on the capital market. Despite a 15.6% growth in the third quarter of 2017, the company had reported a net loss of $25.6 million. Xunlei had failed in its first initial public offering (IPO) attempt in 2011 due to concerns about pirated material. Xunlei had never been a Wall Street favorite. 

In 2017, Xunlei’s business pivot into blockchain technology and cryptocurrency triggered the sudden increase in share value. In October 2017, Xunlei officially presented its new product OneThing Cloud (or OneCloud), a piece of intelligent hardware that allows users to share unused cloud storage space and idle bandwidth with others. Xunlei rewards users who share storage space and bandwidth with its cryptocurrency LinkTokens (also called OneCoin or Wanke Coin) which they can use to purchase Xunlei’s other...

About the Author

Kooogle (pen name) is a writer at tech media site TMTPost. 

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