Crypto Pivot Backfires as Starcoin Hit With Trading Suspension
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Shares of Starcoin Group Ltd. tumbled 73% on Monday after the Hong Kong Stock Exchange ordered a trading halt, raising questions about whether the cryptocurrency-concept firm has a viable business to justify its listing.
The company said before the market opened that the exchange had mandated a trading suspension beginning Nov. 26. Starcoin plans to appeal the decision. Its shares ended the session at HK$0.064 ($0.008), down 91% from a late-July peak.
The move signals tighter oversight by the exchange, especially of companies pivoting to speculative sectors like digital assets while lacking meaningful operations. Citing Listing Rule 13.24, which requires listed companies to maintain sufficient operations and asset value, the exchange said Starcoin failed to meet that standard.
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- Starcoin Group shares fell 73% after the Hong Kong Stock Exchange halted trading, citing insufficient operations and asset value.
- The company, which recently pivoted from pharmaceuticals to crypto, reported a HK$570 million net loss in the last fiscal year and delayed its oral insulin launch to 2028.
- A failed private placement and unsuccessful business shift led to a 91% share price drop from its July peak.
- Starcoin Group Ltd.
- Starcoin Group Ltd. (星和集团有限公司), formerly Innovative Pharmaceutical Biotech Ltd., is a cryptocurrency-concept firm facing delisting from the Hong Kong Stock Exchange due to insufficient operations and asset value. The company, once a pharmaceutical firm, pivoted to crypto under chairman Yang Rong, but has reported heavy losses and stalled business plans.
- Conflux blockchain assets
- Starcoin Group Ltd. signed a memorandum of understanding in June to acquire Conflux blockchain assets. Long Fan and Wu Ming, two Conflux founders, were appointed to Starcoin's board in April. The acquisition and board appointments were part of Starcoin's pivot towards the cryptocurrency sector.
- Starcoin Foundation
- The Starcoin Foundation, established by Yang Rong in Panama, entered into a "coin-stock linkage" agreement with Starcoin Group Ltd. in October. This plan aims to grant shareholders one Starcoin token for every ten shares they possess.
- Innovative Pharmaceutical Biotech Ltd.
- Innovative Pharmaceutical Biotech Ltd. was the former name of Starcoin Group Ltd. The company, once a pharmaceutical firm, changed its name in September and pivoted into the cryptocurrency sector. It has reported heavy losses, stalled business plans, and its flagship oral insulin product's commercialization has been delayed.
- After March 2023：
- Commercialization of the flagship oral insulin product delayed by more than two years, with a new launch timeline set for the third quarter of 2028.
- Fiscal year ended March 2025：
- Starcoin Group Ltd. reported a net loss of HK$570 million and revenue of HK$2.1 million for the fiscal year ended March 2025.
- April 2025：
- Long Fan and Wu Ming, two Conflux founders, were appointed to Starcoin's board.
- June 2025：
- Starcoin signed a memorandum of understanding to acquire Conflux blockchain assets.
- Late June 2025 to late July 2025：
- Starcoin's share price surged by 207%.
- Late July 2025：
- Starcoin shares peaked at HK$0.73, representing a 207% increase from late June 2025.
- July 2025：
- Starcoin proposed a fundraising through a private placement of 90 million shares.
- September 2025：
- The fundraising proposal from July 2025 failed after repeated delays.
- September 2025：
- The company changed its name from Innovative Pharmaceutical Biotech Ltd. to Starcoin Group Ltd.
- October 2025：
- Starcoin signed a new memorandum with the Panama-based Starcoin Foundation for a coin-stock linkage plan.
- Before November 17, 2025：
- The Hong Kong Stock Exchange communicated to Starcoin Group Ltd. that a trading suspension would begin November 26, 2025.
- November 17, 2025：
- Shares of Starcoin Group Ltd. tumbled 73% after news of a trading halt order from the Hong Kong Stock Exchange.
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