Li Xiaolai endorses, Luo Yonghao invests, digging into the long-standing story behind Mixin

Li Xiaolai and Luo Yonghao support and invest in Mixin, uncovering its fascinating history.

Author: Karen, Foresight News

On September 23, Mixin Network, a cloud service provider, was attacked by hackers, resulting in the loss of some assets on the main network, involving approximately $200 million.

Today, two days later, SlowMist was the first to disclose this incident. Subsequently, Mixin tweeted that they have contacted Google and the SlowMist team to assist in the investigation. After preliminary verification, the involved funds are estimated to be approximately $200 million.

At the same time, Mixin Network announced the suspension of recharge and withdrawal services, and stated that, after discussion and consensus among all nodes, once the vulnerability is confirmed and fixed, these services will be reopened. During this period, transfers are not affected.

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Cyvers Alerts has detected about 1,500 transactions related to Mixin Kernel. The first transaction was detected at 07:47:11 on September 23 Beijing time, with a value of 19,000 ETH (approximately $30 million). Addresses 0x52e8 and 0x3B5f hold $117 million worth of ETH.

In a recent live stream, Mixin founder Feng Xiaodong stated that the damaged assets are mainly Bitcoin core assets, and there has not been a serious theft of assets such as BOX and XIN. The specific details of the attack cannot be disclosed yet. The official statement is that they will compensate for a maximum of 50% of the losses, and the remaining portion will be compensated in the form of bond tokens, with repurchases funded by profits. In addition, Mixin will launch a new system for user asset migration, but currently, only half of the user balance can be transferred.

The intricate relationship between Li Xiaolai, Feng Xiaodong, and Mixin

Let’s first explain the relationship between Mixin, Mixin Network, and Mixin Messenger. Mixin is short for Mixin Network. Mixin Messenger is the first open-source DApp on Mixin Network, which only allows login via phone number and enables direct digital currency transfers to friends.

According to the official Mixin website, Mixin was founded in November 2017. It is a free, decentralized digital asset cross-chain transfer and trading network based on punitive PoS to prevent malicious behavior by full nodes, using DAG as the underlying data structure model. Mixin’s main network is also called “Kernel,” which allows developers to develop their own DApps, chains, and any applications based on Mixin Network according to their business needs and requirements.

The founder of Mixin is Feng Xiaodong, who is also the founder and CEO of Feigman and co-founder of XuanYixia (developer of the video player VPlayer). His developed framework, Vitamio, is a well-known multimedia development framework for Android and iOS platforms.

According to the DingTalk website, Feng Xiaodong is also the legal representative of Feigman (Beijing) Technology Co., Ltd.. The company was established on September 3, 2014, and its business scope includes technical development, promotion, transfer, and consultation services. According to Tianyancha, the website of Feigman (Beijing) Technology Co., Ltd. is mixinbots.com.

Let’s take a look at the shareholder information. The DingTalk website shows that Feng Xiaodong holds a stake of 94.0%, with a subscribed capital of 94,000 RMB, and Li Xiaolai holds 5%, while Tieling holds 1.0%. The subscribed capital date is October 23, 2015.

It is worth noting that in February 2016, Luoyonghao also invested 4,000 RMB to become a natural person shareholder, but he has withdrawn from the shareholder ranks of Feigman Technology Company in February this year.

The mixinbots.com website is directly positioned as Figman Adventure (Beijing). Figman Adventure operates the mobile game live streaming community Shou.tv. According to Dingtalk, Figman Adventure has a registered capital of 18.5 million RMB and was established on March 11, 2015. Among them, Feng Xiaodong is the chairman and manager, and Li Xiaolai is a director. Figman Adventure’s shareholder is Feigman (Hong Kong) Limited (corporate legal person), with a shareholding ratio of 100.0%.

The IT Orange website directly positions the official website of Figman Adventure as mixin.one, and then the website directly points to the official websites of Minxin Network and Mixin Messenger.

Feng Xiaodong’s associated companies also include Candy World (Beijing) Technology Co., Ltd. and Aicos (Beijing) Technology Co., Ltd., both of which are in the status of cancellation.

According to a blockchain, Feng Xiaodong has also worked as the chief architect of BigONE. BigONE is a digital currency exchange under Coin Capital (INBlockchian), and Li Xiaolai is the founder of Coin Capital. Laomao, a partner of Coin Capital, is also one of the behind-the-scenes promoters of Mixin.

In addition, Li Xiaolai has also released promotional videos about Mixin Network on Weibo, and is also one of the earliest investors in Mixin. The highest TVL DApp on the Mixin ecosystem is B.watch, also designed by Li Xiaolai. In summary, we can discover the deep and intricate relationship between Feng Xiaodong, Li Xiaolai, and Mixin.

How does Mixin work?

Regarding the operation of Mixin, Mixin brings many public chain assets such as Bitcoin, Ethereum, and Monero into the Mixin network through the Domain Gateway. All off-chain transactions are recorded in the publicly transparent Mixin distributed ledger and written into the blockchain when withdrawals occur.

It is worth noting that Mixin uses different addresses for deposits and withdrawals. After the user deposits, the assets will be transferred to the address managed jointly by the Domain Gateway and the nodes. More than 2/3+1 nodes need to verify and sign in order to withdraw from this jointly managed address to the target address. Therefore, all deposit addresses are empty and cannot query the balance.

In the monthly report of Mixin last month, it stated that currently, Mixin Network has 26 full nodes, and there are a total of 3,199 assets in the network.

XIN token is the utility and governance token in the Mixin network, and it is required to stake nodes, govern, and create DApps. The total supply of XIN tokens is 1 million, and it was publicly sold at a price of 20 EOS/XIN from November 25, 2017, to December 25, 2017. At that time, the price of EOS rose to around $10.

Impacted by the news of the attack, XIN has fallen more than 8% in the past 24 hours, with the current fully diluted market value at around $194 million.

What is the current development status of Mixin?

Mixin stated that as a wallet solution, it currently supports 48 public chains including Bitcoin, Ethereum, Avalanche, Polkadot, etc., with a total network asset value of over $1 billion. As of July 27, 2023, the statistics show that Mixin Network has approximately 100,000 daily active users (the exact number is unknown).

Mixin claims to have a user base of 1 million. The highest historical TVL on Mixin was $2.9 billion (on November 10, 2021), and the highest daily trading volume was 4.9 million transactions on August 27, 2021. In terms of TVL, according to DefiLlama data, Mixin’s current locked value has dropped to around $350 million.

Currently, the DApp with the highest TVL (approximately $264 million) in the Mixin ecosystem is B.watch, which is essentially a dollar-cost averaging DApp. BOX holders will receive a 50% share of the secondary market transaction fees. According to the content published on the official website two years ago, B.watch was designed by Li Xiaolai, and initially consisted of three underlying assets: BTC, EOS, and XIN. It has since expanded to seven underlying assets, including BTC, ETH, EOS, DOT, MOB, XIN, and UNI.

It is currently unknown how the database of Mixin’s cloud service provider lost assets due to a hacker attack, given that it has 26 full nodes. Foresight News will continue to monitor the situation.

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