This round of bitcoin bull market, the cottage currency is too far behind.
The "crazy history" of 2017 did not repeat itself. After Bitcoin broke, a large number of altcoins turned against the plunge mode.
According to statistics from the Inter-Chain Pulse Institute, 94% of the cryptocurrencies in the top 50 cryptocurrencies in the world's market capitalization have fallen in the most recent quarter before the press release, with an average return on investment of -27.6%.
- Nakamoto's curse: There is no mainstream currency, only bitcoin and the altcoin that will disappear in the end?
The total market value of the global altcoin has dropped from a peak of 204.5 billion in 2018 to 91.5 billion today, and the market value has evaporated by more than 80%.
Due to the lack of a unified definition of the altcoin in the industry, the altcoin in this article adopts a broad definition, that is, in addition to bitcoin, other subsequent generations of blockchain technology for the bottom layer are called “cottage coins”. "Altcoin currency" is not a counterfeit currency. It is based on Bitcoin source code or ideas. It has innovations and certain application scenarios.
The coin-linking data analysis website coinmarketcap found that the market value of Bitcoin in the total market value of cryptocurrency has risen from 32.81% to 69.85% since 2018. This means that the current market capitalization of more than 2,400 altcoins in the world has fallen to around 30% of the total market value of cryptocurrencies.
At the same time that the price of the altcoin has plummeted, the application of the public chain Dapp has been collectively misfigured with the decline of spinach and blockchain games.
How to continue the story of the public chain 3.0? The altcoin coins are all supernatural, and they have launched self-rescue movements.
(August 2018-2019, the mainstream currency accounted for the proportion of the total market value of cryptocurrency)
(August 2018-2019, except for Bitcoin, the total market capitalization of currencies)
The second and second-tier market of the altcoin currency
This year's Mavericks market is essentially different from the 2017 bull market.
In the second half of 2017, the market capital flow also entered the bitcoin and the altcoin at the same time, which ushered in the big bull market. Many altcoins have created the myth of “hundred times of coins” and “thousands of coins”.
However, in this year's Mavericks market, a large amount of money flowed into Bitcoin, but it was not diverted to the altcoin.
"This year, under the influence of a series of factors such as global interest rate cuts, Sino-US trade wars, Facebook currency Libra, etc., a large number of institutional funds, large family funds, etc. have entered the market, often prefer to use Bitcoin as a safe-haven asset, rather than visibility. Not a high altcoin.” A person in charge of a public chain project in Shanghai said to the chain of the chain that for these institutions, only the capital reservoir is large enough to be their habitat. At present, bitcoin is the most Good choice.
At the same time that institutional funds continue to raise the price of bitcoin, the “sucking effect” of Bitcoin has become more and more obvious. A large number of retail investors lack faith in the altcoin currency, and funds are accelerating the transfer to Bitcoin, resulting in a collapse in the price of the altcoin.
According to Messari statistics, from the beginning of 2019, more than 50% of the world's cryptocurrency prices are even lower than at the end of 2018.
The continued decline in the altcoin currency has also led to a sharp decline in the return on investment in the secondary market and even a loss.
According to the statistics of the Mutual Chain Pulse Institute, from the beginning of 2019 to the present, in the top 50 cryptocurrency of the global market capitalization, the return on investment exceeds only 3 of the bitcoin; in the most recent quarter, the cryptocurrency of the Top 50 market capitalization, Nearly 60% of the altcoin investment returns are above -30%.
The worse news came from the auspicious currency market.
According to the statistics of the Mutual Chain Pulse Research Institute, in the first half of 2019, the total monthly financing amount of global cryptocurrency basically remained between 200-300 million US dollars, but in July, the total financing amount of ICO, IEO and STO in the cryptocurrency market has been Less than 100 million US dollars, fell to 48 million US dollars, down 83.13% from June, of which STO is no more financing.
From the secondary market to the primary market, the cottage currency is cold and windy, and the market funds are seriously scarce. The era of making concepts, shouting and pushing propaganda alone has passed, and many altcoins will gradually go bankrupt and withdraw from the historical stage.
Self-help, will there be spring in the altcoin?
While Bitcoin continues to suck blood, the altcoin has to start a "self-rescue movement."
Different altcoins have different means of self-help, but mainly the improvement of marketing model. The most common and most used method is the three-piece set of coins – shouting, pyramid selling, and fund trading.
In terms of shouting self-help, Yuhong’s XMX has achieved remarkable results. On June 22 this year, Yuhong carried the “zero-coin” XMX comeback, sending WeChat every day, shouting for XMX, calling for the addition of XMX, and announced that a new official website and white paper will be released in a week, and soon XMX will rise in price within a week. Nearly 7 times, 14 times in 2 weeks, and increased by 195% compared with private equity. However, this kind of self-rescue has come quickly and went fast. In less than a month, XMX broke again.
In terms of the improvement of the funds, many of the zombie coins that have been on the verge of breaking the edge this year have adopted the model currency to return to the public. This self-rescue method is characterized by investment rebates. The essence of this is that the altcoin project party formulates corresponding rules to allow the holders of the money to obtain additional income, thereby attracting more investors to enter the market and raising the price of the currency. Typical altcoins that use model coins to resurrect are mainly represented by SHE, BRC, GTC, ETK, etc.
However, the mode of playing the mode currency of each altcoin is different. For example, SHE is the “all-industry eco-community model”, BRC is “reporting game mode”, GTC is “node dividend mode”, and ETK is “partnership mode”. Such altcoins are often easier to achieve a sharp rise in the price of coins due to the small market capitalization.
For example, since SHE landed the fire coin last year, the price of the coin fell from the high point of 0.19 yuan to 0.005 yuan, a drop of 98%. After adopting the model currency game, the increase rate was 290% in the past 7 days, and the cumulative increase in the 30 days was 4223%. About 50 times.
However, the gameplay of the model currency is still only the game of the left hand and the right hand. The basic routine is to lock the position. The altcoin locks the warehouse through various means, controls the circulation to prevent the retail investors from selling, and then seeks the capital to cooperate to pull the disk, attracting the retail investors to chase the high, so that it faces less selling pressure, and then pulls up the shipment to a certain extent. , harvesting retail investors.
In addition to the model currency, there is also a variant of the pyramid scheme in the altcoin field. This model quickly caused imitative changes with its powerful gold-absorbing ability, fanatical community and pyramid schemes. The resonance coin items that have appeared on the market today include: BNB Resonance FDS; HT Resonance HDS; OKB Resonance ODS; WDT Resonance VBT.
This model originated from VDS, which made a wallet, and after the user imported or registered the Bitcoin wallet, it simultaneously generated a VDS wallet. Users can use the BTC in the wallet to redeem (resonate) the VDS. The sooner the VDS is converted into a bitcoin, the lower the VDS will be, and the lower the proportion of the conversion will be until the conversion ratio is reduced to 1:1.
With the resonance coin model, VDS raised 1.3 billion yuan, from 0.62 US dollars to a maximum of 12.8 US dollars, the market value of circulation was as high as 7.2 billion yuan, its blood-sucking ability to kill Fomo3D and Bell chain, but its 20-fold increase lasted only one day, VDS The plunge mode is turned on.
In essence, these self-help methods of marketing the currency of the altcoin are just a new way of changing the way of changing the soup. The effect can only be the return of light, without changing the living environment of the auspicious coins.
At the same time, the domestic individual public chain has begun to explore a new self-help mode, to create a public-chain commercial BaaS platform, and exert a B-side application scenario. This self-help mode may not be able to achieve immediate results in the secondary market, but In the long run, it can make up for the lack of intrinsic value after the collective misup of the cottage Dapp application.
Author: Mutual chain pulse · Liangshan Huarong
This article is [inter-chain pulse] original, reproduced please indicate the source!