The Gambler's Downfall: The Rise and Fall of Douyu

The Gambler's Downfall: The Rise and Fall of DouyuIntroduction:Born in Jinan in 1984, Chen Shaojie displayed a passion for gaming from a young age. He became addicted to video games in the fifth grade, even abandoning his college studies for the sake of gaming

The Gambler's Downfall: The Rise and Fall of Douyu

Introduction:

Douyu, once a thriving game streaming platform, has now fallen from grace. The mastermind behind it all was Chen Shaojie, a founder known for his "love of adventure" and "playing with fire." He led Douyu through the "Thousand-Stream War," eventually taking it public on the Nasdaq. However, his inherent aggression and risk-taking ultimately pushed Douyu into the abyss. Today, Chen Shaojie has been arrested for operating a gambling den, and Douyu faces a bleak future with top streamers leaving and its stock price plummeting. This internet legend, fueled by a gambler's ambitions, ultimately met its end in the clash between desire and reality.

The Rise of Chen Shaojie: From Internet Addict to Internet Legend

Born in Jinan in 1984, Chen Shaojie displayed a passion for gaming from a young age. He became addicted to video games in the fifth grade, even abandoning his college studies for the sake of gaming. This experience as an "internet addict" became the foundation for his future entrepreneurial journey.

Chen Shaojie didn't let his lack of education hold him back. Instead, he motivated himself by saying, "Liu Bei sold straw mats, Guan Yu sold dates, and Zhang Fei slaughtered pigs all eventually becoming great leaders." Leveraging his decade of gaming experience, he landed a job at a game company in Wuhan, where he met Zhang Wenming, a programmer who shared his passion for gaming.

Together, they developed a gaming platform called "Palm Leader," which gained immense popularity due to its unique design and gameplay. They eventually sold "Palm Leader" for 4 million yuan, making Chen Shaojie a millionaire.

The Birth of Douyu: Seizing the Opportunity

However, Chen Shaojie's aspirations went beyond this. He acquired A Station, China's original anime and manga website, and introduced the popular Japanese feature of bullet screens. He also established a "live broadcast" channel dedicated to streaming games like LoL and Dota.

When Amazon acquired Twitch, a game streaming platform, for $970 million, Chen Shaojie astutely recognized the potential of game streaming. He decisively spun off the "live broadcast" channel from A Station, renaming it "Douyu TV" and securing a dominant position in China's game streaming market.

The Thousand-Stream War: A Burning Competition

China's live streaming industry took off rapidly, with over 200 platforms emerging to engage in a fierce "Thousand-Stream War." Chen Shaojie, with his sharp business acumen, quickly developed an expansion strategy, turning the competition into a burning money game.

He poached top streamers from other platforms, including Zhang Daxiang, the top streamer on Penguin E-sports, A Leng, the top streamer on Momo, and Nadou, a top influencer on Bilibili. He even broke the law by poaching Huya streamer Hai Shi, ultimately being sued by Huya and fined 49.7 million yuan.

Chen Shaojie's "crazy" strategy paid off, as he successfully secured eight of the top 10 streamers in the industry. Douyu quickly rose to become the leader in the game streaming market.

Douyu's Peak: Nasdaq Listing and Soaring Market Value

In 2019, Douyu successfully listed on the Nasdaq, reaching a market value of over $4 billion, making Chen Shaojie an internet legend. However, this swift victory came with a hidden cost.

Douyu's Crisis: Exploiting Gray Areas and Turning the Platform into a Casino

Chen Shaojie always operated under the motto of "picking up coins from the ground while facing a thief." Even in the face of regulatory pressure, he tried to survive in the cracks.

He used questionable tactics to attract viewers, employing various methods to enhance user stickiness, even if it meant bending the rules.

In 2020, Douyu's top outdoor streamer, "," launched a "6 yuan card purchase for a chance to win 50,000 yuan" promotion, raising suspicions of gambling. Despite Douyu's statement that the event was a sales promotion, it was ultimately confirmed to be gambling, and several members of the team were taken into custody.

The emergence of the "Changsha Rural Daredevils" further pushed Douyu's gambling issue into the spotlight. They leveraged Douyu's various lottery rules to engage in suspected gambling activities, even describing the live card draws as "10 o'clock economics class," addicting many young people.

Douyu was confirmed to be condoning and even encouraging gambling, driven by immense profits that prompted both the platform and streamers to cross the line.

Douyu's Decline: Top Streamers Flee, Market Value Shrinks

As regulations tightened and competition intensified, Douyu's crisis became increasingly apparent. Its market value plummeted from its peak of $6.4 billion in early 2021, reaching a loss of 582 million yuan, exceeding its total profit for the two years since its listing.

Top streamers left in droves, migrating to the short video platform Douyin, causing a significant loss of traffic for Douyu.

Top streamers like "Douyu Brother No. 1" Xu Xu Bao Bao, "Douyu Sister No. 1" Yi Tiao Xiaotuan Tuan, and PDD all chose to leave Douyu.

The End of Chen Shaojie: Arrested for Operating a Gambling Den, Douyu in Trouble

In November 2023, Chen Shaojie was arrested by Chengdu police for operating a gambling den.

Following the incident, Douyu's stock price continued to decline, its market value shrinking by 90%, and the platform plunged into crisis.

Conclusion:

Chen Shaojie's "craziness" led to Douyu's rise, but ultimately ended in its downfall. He gambled on Douyu, playing with fire, and ultimately lost everything.

This internet legend, fueled by a gambler's ambitions, ultimately met its end in the clash between desire and reality.

Reflection:

The rise and fall of Douyu reflects the turbulent times in the internet era. It serves as a warning that while pursuing profit, we must uphold our principles and not sacrifice our values for traffic, otherwise, we will ultimately face the consequences.

Appendix:

Here are some keywords from the article that might aid in understanding the content:

• Chen Shaojie: Founder of Douyu, known for his "love of adventure" and "playing with fire."

• Douyu: Renowned Chinese game streaming platform.

• "Thousand-Stream War": From 2014 to 2016, China's live streaming industry experienced a fierce capital battle, resulting in numerous streaming platforms.

• "": Top outdoor streaming team on Douyu, which sparked controversy for suspected gambling.

• "Changsha Rural Daredevils": Top outdoor streaming team on Douyu, exposed for engaging in suspected gambling activities using the platform.

• "Yi Tiao Xiaotuan Tuan": Top game streamer on Douyu, arrested for suspected gambling.

• A Leng: Former "Momo Sister No. 1," subsequently joined Douyu, and has now retired from streaming.

• Zhang Daxiang: Top streamer on Penguin E-sports, now active on the short video platform Douyin.

• Xu Xu Bao Bao: Top game streamer on Douyu, suspended for suspected gambling, but has since returned to streaming.

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