What is behind the Nayuki common name for coffee virtual stock game?
Nayuki launched a virtual stock game for its 50 million members on the first anniversary of its Hong Kong listing, on June 30, 2022. Members earn 1 Nayuki Coin per 1 yuan spent, then use the coins to trade virtual stocks tied to the company's real Hong Kong share price, with leverage of 2x, 5x, or 10x. Coins can also be redeemed for coupons, vouchers, and merchandise.
A lawyer described the coins as a non-circulating token and said the virtual trading and leverage features may carry financial risks, including illegal fundraising concerns. The timing added to the criticism: Nayuki listed at HK$19.8 and closed at HK$6.65 on its listing anniversary, a drop of more than 60 percent. The company, known by its common name for coffee and tea drinks, drew online pushback over whether it should focus on its drinks.
On the first anniversary of its listing on the Hong Kong Stock Exchange, Nayuki launched a virtual stock game for its 50 million members. For every 1 yuan spent, consumers receive 1 Nayuki Coin, which can be used to buy and sell virtual stocks. These virtual stocks are tied to the rise and fall of real Hong Kong stocks and even support leverage of 2x to 10x. Nayuki Coins can also be redeemed for cash coupons, discount vouchers, and merchandise; a MacBook Air requires 200,000 Nayuki Coins. This move sparked huge controversy. A lawyer pointed out that it is essentially a non-circulating token, but the virtual stock trading and leverage features may involve financial risks such as illegal fundraising. Meanwhile, Nayuki's Hong Kong stock price has fallen continuously from its issue price of HK$19.8, closing at only HK$6.65 on its listing anniversary, a drop of over 60%.
On June 30, 2021, Nayuki officially listed on the Hong Kong Stock Exchange, earning the title of "the first new-style tea drink stock," filling the industry with expectations for the prospects of the new tea beverage sector. One year later, on June 30, 2022, coinciding with its listing anniversary, Nayuki announced the launch of a virtual stock game, introducing Nayuki Coins to its 50 million members.
According to a post on Nayuki's official WeChat account, starting June 30, consumers receive 1 Nayuki Coin for every 1 yuan spent. These Nayuki Coins can be used to buy or sell virtual stocks, making users virtual shareholders. Nayuki's virtual stocks are tied to the rise and fall of real stocks. The virtual stock price is calculated as: the closing price of Nayuki's Hong Kong stock on the trading day multiplied by that day's HKD-to-RMB exchange rate. Users can also choose to trade with 2x, 5x, or 10x leverage.
Nayuki Coins earned by completing tasks or participating in games can also be redeemed for cash coupons, discount vouchers, and merchandise. According to the relevant page on Nayuki's WeChat mini-program, a 13-inch Apple MacBook Air requires 200,000 Nayuki Coins, while the same product sells for 7,999 yuan on Apple's official store.
As soon as news broke that Nayuki was launching a virtual stock activity for its 50 million members, it quickly sparked huge controversy. Some netizens bluntly asked: Can't Nayuki just focus on making good milk tea?
In recent years, the state has continued to intensify efforts to crack down on illegal speculation in virtual currencies. A lawyer who has long studied virtual currency compliance issues told a reporter from 21st Century Business Herald that the "Nayuki Coin" launched by Nayuki is essentially a narrowly defined non-circulating token and is not regulated by financial management laws and regulations.
Nayuki's platform names its consumption points "coins." Users earn reward points by consuming or completing specific tasks, which can then be exchanged for discounts. This model has long been the most common marketing tactic among major merchants.
As a non-circulating token, Nayuki's consumption points face relatively little controversy over touching legal red lines. However, the virtual stock trading and "leverage" features launched by Nayuki borrow the framework of stock trading, thereby sparking controversy among netizens.
Regarding Nayuki's offering of virtual stocks for drinking tea, Zhu Yonghong, a partner at Wantong Tianqin (Shanghai) Law Firm, told Phoenix Technology that Nayuki's purpose in using virtual stocks may be merchant hype. Since the use of virtual stocks by consumers, i.e., consumption-based shareholders, involves a large number of people, it cannot be ruled out that it encourages more consumption, absorbs social funds in disguised form, and uses virtual coins for transactions, which carries financial risks such as illegal fundraising.
In reality, Nayuki's Hong Kong stock issue price was HK$19.8 per share, and its closing price on the first anniversary of listing was HK$6.65 per share, a decline of over 60%. Some suspected Nayuki stockholders shared their thoughts on Weibo.
Since Nayuki's listing, its closing price has consistently remained below the issue price. It broke issue price on the first day of listing, with the first-day closing decline reaching 13.54%. Thereafter, Nayuki's Hong Kong stock price even suffered repeated halvings. On March 15 of this year, Nayuki's stock price even dropped as low as HK$3.65.
Investment carries risks, and financial management requires caution. So, have you, in front of the screen, become a Nayuki "shareholder"?
Image source: Nayuki mini-program, Xueqiu, Weibo, internet
The above content is compiled by CoffeeHunters, a coffee news website.
