Fusang Exchange Facing Its Worst Crisis Nightmare
25 Nov 2020 — Fusang Exchange facing its worst crisis nightmare, with the withdrawal of the bond at the request of the issuer, Longbond Ltd, through its Listing Sponsor, China Construction Bank Corporation Labuan Branch.
Was it due to the overhyped report on the $3 billion figure from the initial announcement that have caused CCB’s cold feet? Or was the change of mind because of the recent #FinTech close scrutiny by Chinese regulators and its clampdown on financial technology companies such as the Ant Group?
Earlier, the bank said CCB Labuan was not the issuer of the bond and had no direct relationship with the issuer. The branch was only a sponsor and did not accept #Bitcoin.
China does not recognise cryptocurrencies as legal tender and its banking system does not accept cryptocurrencies. The fact that the tokens could be traded in Bitcoin perhaps may have caused the bank’s pre-listing jitters and therefore decided to call it off eventually.
As a PR man, all affected parties must speak with one voice and have a coordinated and unified message, so as to avoid the spread of misinformation and rumours from public speculations. Without proper crisis management and well-prepared communication plan, the damage of credibility and reputation will sadly be unavoidable.