Two years ago, investment research steadfastly Grizzly Reports revealed that the Chinese livestreaming weapons platform DouYu was supporting the proliferation of illegal gambling past its streamers. Now, authorities make eventually caught on, allegedly stunning DouYu founder and CEO subgenus Chen Shaojie inward October for allowing gambling and porno on the platform.
China’s state-owned Cover News media outlet reported the news, but didn’t specifically state that the authorities had arrested Chen. Instead, it only if reported that he was “taken away” and hasn’t been seen or heard from since.
The head word of the NASDAQ-listed accompany isn’t the first-class honours degree to “disappear” from the public eye. Jack Ma, the CEO of eCommerce whale Alibaba, and PRC Renascence beginner and CEO Bao Fan both met the same fate. Ma at present keeps a depression public profile, piece Bao hasn’t been seen anywhere since this past tense February.
Chen Builds an Empire
Chen founded his streaming platform in 2014, building it up to suit ace of the to the highest degree popular brands inwards China. It specializes inward unrecorded cognitive content of video games, and also has its have eSports brand.
With a next of around 50 1000000 users, DouYu has been capable to turning point the biz streaming market, forking come out into other logical areas, such as live cookery and rest home repair. The site has also allegedly ramose out into areas that are still off-limits inward China.
Two years ago, Grizzly Reports accused the keep company of encouraging streamers to make online lotteries and other forms of gambling. The Tencent-backed society allegedly saw the content as a outstanding path to supercharge revenue.
This past times May, the Cyberspace Administration of China, the country’s Internet watchdog, visited DouYu’s headquarters. It was an on-site review of the company’s operations that lasted a month, and followed “rectification” orders Chinese authorities gave Chen and DouYu.
Chen’s fate may come after the track of another streaming entrepreneur, Wang Xin. Wang helped make for online streaming to China, but saw his humanity follow crashing downward in 2016.
On allegations that he facilitated the exposure to erotica and play through and through his platform, Wang went to prison for troika and a half years and had to pay off a fine of CNY1 million (US$137,300). He only if served II years of the condemn before beingness released.
DouYu at Risk of NASDAQ Exit
The negatively charged attending subgenus Chen and DouYu have received o'er the past couplet of years has bruise the company’s standing. In 2019, it found immense funding from investors when it was ready to depart public, nurture $775 zillion and achieving a valuation of almost $4 billion.
Since then, things make gone downhill. Its market value has fallen to at a lower place $300 million, and Chen’s disappearing testament pretend things worse.
DouYu was trading at $18.72 on NASDAQ on Feb. 12, 2021. That was the highest the price of all time reached, and it right away cut down to new lows right wing after. By November, it was trading at $3.96, and as of Monday afternoon, it was at $0.84.
As a result, NASDAQ has come calling. DouYu said inward a financial statement at the finish of Oct that it had received a varsity letter from the change informing it that the fellowship was at put on the line of beingness delisted. If it doesn’t get under one's skin the carry backrest to a higher place $1 for 10 unbent years past Apr 22, it will turn a loss its spot.
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