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Bitcoin Rewards App Accuses Alibaba of Breaking Contract
November 18  |  2 min read

Bitcoin Rewards App Accuses Alibaba of Breaking Contract, Alibaba Denies Partnership

The COIN360 Editorial Team

On November 17, CEO of the rewards app Lolli Alex Adelman replied to Alibaba’s denial of having a partnership with his company, insisting that the partnership took place and “generated significant revenue,” blaming Chinese global shopping giant Alibaba for misinforming the media and their customers.

On November 11, on China’s Singles’ Day, Bitcoin rewards application Lolli announced a partnership with Alibaba. The campaign reportedly allowed users to earn up to 5% bitcoin back by shopping with the e-commerce giant. The event got a lot of media attention, with all the implications of a major Chinese company working with Bitcoin despite the government ban.

On November 15, a representative from Alibaba denied this partnership, explaining that the affiliate marketing program with Lolli was brokered by a subcontractor that was hired “without the knowledge of,” and that Lolli “never had the right to claim a partnership with or imply one with Alibaba Group.”

In his statement, Lolli’s CEO Adelman insists that they did have a partnership with the Alibaba Group, “since May through AliExpress” and have generated “significant revenue” for the company during the campaign. He detailed that Alibaba used the Lolli services for 24 hours, which could not be done without integration from the Alibaba side, but later the company abruptly stopped the partnership, “breaking the contract.”

Adelman maintains that the use of the Alibaba brand was “approved by a contractual agreement,” but despite his regrets about “miscommunication on Alibaba’s end” and its negative consequences for the Lolli brand, the company remains open for potential new collaborations.

As COIN360 earlier reported, Alibaba allegedly used blockchain technology to trace over 400M cross-border commodities during this year’s Singles’ Day event, a large increase from last year’s 150M commodities traced via blockchain during the event. Additionally, the e-commerce giant has also used blockchain technology for copyright protection as well as for supply chain finance, which has helped more than 30k small and micro businesses obtain supply chain loans on the company’s e-commerce platform.