Same name, but different stories and fields of action: in the end Alibabacoin falls under the control of the China based group Alibaba.
The Chinese e-commerce giant, the world’s largest group in the sector, had found a competitor in the crypto sector with a very similar name, Alibabacoin, and a not so different area of activity, retail trade.
It must be acknowledged that Alibabacoin (ABBC), born from the co-interest of Middle Eastern and Belarusian investors, had a similar area of activity, wanting to become an international currency for retail in large European and Middle Eastern outlets, but as long as it was a secondary currency, with low capitalisation and an uncertain future, it did not appear to bother the e-commerce giant.
Alibabacoin and the Chinese stablecoin
However, in the dynamic world of virtual currencies, things change rapidly and in February the token exceeded a capitalisation of 100 million dollars, reaching 200 and then stabilising at 150.
At this point Alibabacoin could no longer escape the interest of Alibaba, especially because its name could generate a situation of confusion, which is why a legal battle had begun which, despite initially being in favour of the Alibabacoin Foundation, was concluded with the transfer of the Alibabacoin name to the Chinese group Alibaba, while the foundation and the related token will now be called ABBC Foundation and ABBC.
A move that was concluded in the respective legal offices in New York and that puts an end to a confusing situation.
Now Alibaba legally owns the name of the token and therefore the question arises: will they use it? Recently the Chinese group has concluded an agreement with Mizuho Bank for the use of J-Coin, so it is not impossible that, with time, the Chinese group will want to issue their own stablecoin, also in view of greater expansion at international level.
There is currently a cryptocurrency ban in China, but a stablecoin linked to the price of the yuan and used for international retail trade could be seen as a major step forward even by the Chinese authorities.
In this case, by having control over the name Alibabacoin, the e-commerce giant would have cleared the field from dangerous confusions.