Beijing Momo Technology Co., creator of the popular Momo dating app, plans to go public in the U.S. this year after having been valued at US$2 billion, but the apps alleged pornographic use might deter positive investments.

According to the company's website, its app, which was launched in 2011, has close to 120 million registered users.

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However, an ongoing Chinese government crackdown on pornographic content online may affect Momo's IPO bid as it did Sina Corp., whose stock prices were slashed after a government sanction.

A recent investigative report published by Xinhua News showed that the app is being used for prostitution. A Xinhua reporter went undercover, visited Beijing's Sanlitun bar street and opened the Momo app to look for photos of seductive women.

The report described the photos as photoshopped in order to highlight the women's physical attributes and make them more attractive. The selfies of women were "taken from angles to emphasize their [women's] beauty," Xinhua reported.

Xinhua's report also claimed that the interactions via the dating app resulted in sexual assaults. The report said it found a large number of motives that led to violence and crime. It cited a Baidu news of a woman raped after using the app.

Besides rape and pronography, cases of extortion were reported as criminals take advantage of the app's popularity of attracting victims. The report said that criminals and gangs find it easier to accomplish their deeds using the Momo app.

In defense of its reputation, the company issued a statement that its app is not a hotbed for prostitution and violence. A company spokeswoman acknowledged, via email, that the Momo app has been used for prostitution, but such incidents are miniscule.

"We sincerely welcome the 2014 anti-pornography campaign," The spokeswoman said in the statement that Momo is will use strict standard industry methods to prevent the spread of pornography. 

The spokeswoman also added that the company's statement was not a mere lipservice because Momo's future and commercial interest runs contrary to lewd and sexual content.

The recent exposes of Momo app's shady usage and the Chinese government's anti-pornography campaign might make investors give the company a second thought.

TagsIPO, Beijing Momo Technology Co, Momo Pornography