A $1 billion Chinese blockchain fund launched in April has denied a report that the local government will withdraw its financial support following the leak of a recording involving a former partner of the fund.

The news report in question, published by China Business Journal on Thursday, stated that the Hangzhou city government has demanded that the Xiong’An (or Grand Shores) Blockchain Fund stop promoting itself by describing itself as a government-backed fund. The Journal added that the local government has also decided that it will not contribute further capital to the project.

If true, the news marks a notable withdrawal from the initial plan revealed in April in which the local government agreed to contribute 30 percent of the fund. So far the government has apparently allocated 30 million yuan (around $4 million), the report said.

Citing an anonymous source close to Li Xiaolai, a well-known Chinese crypto investor and a former managing partner of the fund, the news source indicated that the government’s decision to withdraw came after a recording of a private meeting at which Li made controversial comments was leaked early this month – statements deemed  to have had a negative impact on the company and the city government.

According to China Business Journal, though, Li responded that the fund “is not suspended.” He further clarified to CoinDesk that, by that, he means the government has neither suspended Grand Shores’ operations nor pulled out its future funding support.

Later on Thursday night, Grand Shores Blockchain Fund also issued a statement denying the report, saying they have not received any suspension notice from the government.

Dominoes image via Shutterstock

July 26 might be forever remembered as one of the darkest days in Facebook’s history – or, at the very least, for its shareholders.

An otherwise unassuming Thursday, the day saw the social media giant lose more than $120 billion in market value, the biggest loss in one day for any U.S. traded company. According to Bloomberg, the loss is a direct result of the company’s second-quarter report on sales and user growth figures, which fell short of analyst projections, along with months of scandals and criticism regarding data privacy.

But if the social media giant was already having its worst day ever, crypto advocates were there to make it (maybe) just a little worse.

If you’re wondering how Facebook’s loss could possibly be associated with cryptocurrency, the answer is simple: it all started with a comparison between the values of bitcoin and Facebook.

Of course, crypto supporters would not let it go as cryptocurrencies have long been criticized for being volatile by traditional market views.

The seemingly tenuous nature of Facebook’s stock price led some to draw comparisons with the volatility seen in cryptocurrency markets. As Romain Dillet put it, bitcoin “feels like a stable asset” by comparison.

Interestingly, as many can still recall the feud between Facebook’s CEO Mark Zuckerberg and the Winklevoss brothers from the award-winning movie The Social Network, members in the crypto community also gave a shout-out to Cameron and Tyler Winklevoss brothers, who are now among some of the biggest crypto investors as well as co-founders of Gemini, a New York-based cryptocurrency exchange,

In the words of one observer, the reversal of Facebook’s market fortunes represented a dose of “sweet revenge.”

(The Winklevoss brothers, as CoinDesk reported Thursday, suffered a blow as the SEC once again shot down their bid to have a bitcoin exchange-traded fund (ETF) listed.)

Not everyone was buying the Facebook stock and cryptocurrency comparison, however.

Some Twitter users who said they believe that conflating Facebook and cryptocurrency is a meaningless exercise.

As of the time of writing on Friday, Facebook’s stock hadn’t seen much of a recovery, according to data from Google. Yet the plunge seems to have been arrested, offering, at the very least, a possible reprieve from the crypto-critics.