A news report caused a stir in the tech industry. The report stated that a unicorn company backed by SoftBank had exploded. The company had claimed to have 20 million users, but it was later revealed that 95% of these users were robots. As a result, the company's valuation plummeted from 800 million to just 10 million.
The company in question is called YiPin, a social networking app that allows users to share short videos. The app was launched in 2019 and quickly gained popularity, especially among young people. In 2020, SoftBank invested 200 million in YiPin, valuing the company at 800 million.
However, it later emerged that YiPin had been inflating its user numbers. The company had created a large number of fake accounts, which it used to artificially inflate its popularity. This practice was uncovered by a team of researchers from Peking University.
The revelation that YiPin had been using fake accounts has caused a major scandal in the tech industry. SoftBank has been heavily criticized for its investment in the company, and YiPin's CEO has been forced to resign. The scandal has also raised questions about the accuracy of user numbers in the Chinese tech industry.
It is still too early to say what the long-term impact of this scandal will be. However, it is clear that it has shaken the confidence of investors in the Chinese tech industry. It is also likely to lead to stricter regulations on the use of fake accounts in social media apps.
In the meantime, YiPin is trying to rebuild its reputation. The company has announced that it will be deleting all of its fake accounts and that it will be more transparent about its user numbers in the future. However, it remains to be seen whether YiPin will be able to recover from this scandal.
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