Why Xunlei Ltd. Stock Plunged Today

Shares of Xunlei Ltd. (NASDAQ: XNET) closed Wednesday trading 31.1% lower after the Chinese cloud-based acceleration technology company offered clarification on its approach to its digital token product, Wankebi, and its dispute with Shenzhen Xunlei Big Data Information Services Company (aka, "Big Data").

More specifically, Xunlei stated that while it does own a 28.77% equity interest in Big Data -- it has "no management control" over the company. As such, and to "protect the interests of the company," Xunlei has terminated Big Data's right to use the Xunlei brand name, effective immediately.

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Source: Fool.com