This article was originally published by Radio Free Asia and is reprinted with permission.
To skeptics, a meme coin is a fast way to make a cheap buck.
For exiled activist Li Ying, it’s been a way to bankroll a pro-democracy community that’s challenging Chinese censorship and authoritarian rule.
Li, 32, is better known by his handle on the social media platform X: “Teacher Li is not your teacher.” He’s built a following of more than 2 million by posting news that Chinese authorities don’t want people to see.
Last December, he branched out to launch $Li, a form of cryptocurrency modeled after his own social media avatar — a hand-drawn tabby cat. The goal was to provide financial support for his initiatives to crowd-source data from inside China on social issues like overwork by students and laborers with an aim to promote change.
But his move split the Chinese diaspora. While some supporters rallied behind Li, many activists and former supporters of Li condemned the launch as a fraud and an act of self-dealing.
On its debut, $Li reached a market capitalization in the tens of millions of U.S. dollars. But the price quickly plunged. As of the time of reporting, $Li’s market cap had dropped more than 80%, to less than $2 million.
Li concedes that his personal reputation took a beating, but he says that the coin’s launch has stimulated a debate about how cryptocurrency might be used to fund the activities of dissident groups beyond the reach of governments — not least the long arm of the Chinese Communist Party.
As an exiled influencer challenging Beijing’s censorship machine, Li said he has been facing threats and pressure from Chinese authorities.
Li said he lost his job in Italy, had his bank accounts in China frozen, and struggled to make a living through individual donations. In 2023, he publicly disclosed that his ad revenue from X averaged just €568 per month (about US$650) — well below the average monthly income in Italy.
“I had no choice but to launch a cryptocurrency,” Li told RFA.
According to a statement issued by Li on X, $Li had a total supply of 1 billion coins, with pricing left to market forces. A foundation was to be established to oversee the coin, with 19.5% of tokens held by the foundation and 2% held by Li himself.
Li said he froze the majority of his own holdings because he has no plans to sell. The remainder has been used for payments to staff involved in initiatives promoting democracy in China.
One of the managers of the foundation, Canada-based influencer “Toronto Squareface,” stated in a post on his X account that the use of funds would be determined through a democratic process. All transactions would be publicly recorded and transparent under the blockchain technology.
In a statement on X, Li said he plans to use the foundation to build community supporting initiatives that promote freedom of speech and press freedom in China.$Li will not hold any presale, meaning that there will be no early access sales to any investors, and the team has no authority to mint additional tokens.
According to the latest data from a trading platform GMGN, there are 6,283 holders of $Li.
Shortly after its launch, some platforms flagged $Li as a scam or high-risk token and banned its trading. Li explained to RFA that this was primarily because those platforms have Chinese ownership, such as the on-chain wallet OKX. He added that $Li was labeled a scam as part of a political attack by the Chinese authorities.
Despite the reassurances offered by Li about the management of $Li, many of his supporters turned against him after its launch, accusing him of betrayal and opportunism.
“He (Li) has changed under immense pressure and the temptation of money,” wrote Huang Yicheng, an organizer and exile who participated in China’s anti-Covid protests. He announced on X that he was cutting ties with Li.
Huang accused Li of leveraging public trust to enrich himself, which Li denies. Others claim that under the guise of promoting democracy in China, Li’s real goal was to exploit investors.
Some critics even drew comparisons to Guo Wengui, the self-styled Chinese dissident and vocal supporter of Donald Trump. Guo was convicted on multiple counts of fraud and money laundering for allegedly using his online influence to scam followers out of more than $1 billion, including through a fraudulent cryptocurrency scheme.
Li’s supporters, however, view the meme coin’s launch as an innovation in the civic movement.
“Li burst onto the scene like a disruptor no one expected,” said Jiangbu, who prefers to be identified by a pseudonym for security reasons. He’s a Paris-based non-governmental organization activist focusing on social issues in China.
Jiangbu, who once led overseas protests against China’s zero-covid policy, said he’s familiar with the slow grind of traditional non-profit work — securing grants, drafting reports, executing programs.
“What Li did was create money out of thin air,” said Jiangbu, who has served as a coordinator for one of the initiatives funded by $Li. “The project is efficient, and everyone gets a little reward and has a real sense of participation. It’s incredibly innovative.”
According to Aaron Zhang, a member of Li’s team who is also being identified by a pseudonym due to security concerns, staff chose $Li as a payment mechanism because of cryptocurrency’s anonymity. This has made it difficult for the Chinese government to trace transactions back to individual investors, thereby protecting their safety.
Despite the criticism Li has faced, he said he succeeded in building a cryptocurrency-based community capable of launching initiatives with real impact on China.
“Every time you come back from the brink,” Li said, “you come back stronger.”