Leshi Internet Information and Technology, previously known as LeTV, has been questioned by Shenzhen Stock Exchange regarding its smart TV subsidiary Lerong Zhixin’s new blockchain business, our sister site has reported (in Chinese). The company is under the suspicion of using blockchain buzzwords to hype up its stock price.
Lerong Zhixin (formerly known as Leshi Zhixin or LeTV Zhixin) announced plans on July 11 to launch a new smart hardware dubbed “One-chain Box” (一链盒子) in partnership with One Chain Technology. Lerong Zhixin also revealed that it will collaborate further with One Chain Technology in other areas of blockchain business including launching fundraising and token projects. The company also claimed that One Chain Technology’s shareholders and managing staff previously took on “key roles” within the Leshi ecosystem.
According to the rather undetailed product description in local media reports, One-chain Box is an OTT (over-the-top) TV box that allows users to watch digital content at no cost. It rewards users for sharing their idle bandwidth and for the attention they spend on ads.
In the document issued by the Growth Enterprise Market (GEM), Shenzhen Stock Exchange demanded Leshi to provide detailed information regarding the current status of One Chain Technology’s blockchain business, including related personnel, capital, technology patents, as well as the company’s core competitiveness and the foundation for its business.
The Exchange also asked Leshi to clarify its relationship with One Chain Technology and prove that its blockchain business operates within the lines of policy and regulations, both in China and overseas. Along with the response to its inquiries, the Shenzhen Stock Exchange requested Leshi to prove that it is not attempting on using blockchain buzzwords to hype up its stock price.
LeTV was founded in 2004 by Jia Yueting, who has had a rough couple of years wading through financial troubles. Letv.com went public on the Shenzhen Stock Exchange in August of 2010. In 2017, former Leshi IPO committee members were detained over allegations that its earnings and operating details had been inflated.