Opinion | Talking about platform currency, which makes digital currency extension more abundant

Since the birth of Bitcoin in 2009, digital currencies have continued to evolve, and digital currencies such as Ethereum and Stabilized Coins have been created. Digital currency is just a function of purely money media. At the time, it did not see the scene of its application different from traditional currency. On June 18 this year, Facebook officially released the Libra white paper on cryptocurrency. The cryptocurrency once again caused heated discussion. Her good intention was to solve the problem of users who did not use bank accounts. This is very suspicion, even the high IQ of the United States. Members of Congress can't understand it correctly. However, the connotation and extension of another digital currency concept is constantly evolving, which is the concept of token (understandable: platform currency). This is the integration of unified financial concepts, but the application scenarios and values ​​are further highlighted. The evolution of Token's digital currency is self-formed, and its application is also characterized by functionalization, financialization, and expression of its user rights. It can fully demonstrate the charm of digital currency. The platform currency of the exchange should be the best interpretation of the current application value of digital currency.

According to the non-small data statistics of the big data platform of the digital currency industry, as of August 27, there are now a total of 3,768 digital assets, 448 trading platforms, 180 wallets, total market capitalization of 2 trillion yuan, and average daily transaction volume. 300 billion yuan. There are at least 50 platform coins issued on the digital currency market.

Platform currency, simply a token issued by the digital currency trading platform, is distributed to users through private placement, sale, delivery, etc., and then gives certain rights to the holder. It should be of a crowdfunding nature and can be applied to a collection of tokens within the platform that help implement platform functionality.

Platform currency development history

The originator of platform coins should be Times Coin (TMC), and it is also the first platform coin to create a "transaction mining" model. The time currency that AEX launched on September 12, 2013 is like the concept of today's platform coin, which is free to all users. Each time currency is equivalent to one dividend right, and the transaction fee generated by the trading platform is 50% is used as a bonus bonus. The bonus is distributed according to the proportion of the number of times the user actually holds. Since March 2, 2015, the platform has stopped the free gift of TMC. Although TMC pioneered the “transaction mining” model, it was not developed because it was premature and market acceptance was low.

At the end of July 2017, Icoin settled at ICO's platform BNB, with a total issued amount of 200 million pieces, and ICO accounted for 100 million shares. Subsequently, Firecoin and OKEx sold their own platform coins HT and OKB in the first quarter of 2018. The incentive model for platform coins during this period is to allow users to enjoy special rights, such as deduction fees, participation in platform activities, and so on. Based on the size of the three major exchanges, the platform currency on the line has certain appeal, and various incentives can guarantee the loyalty of users. At this stage, the platform coin has a plan for ecological construction that makes the platform currency more practical.

In May 2018, FCoin launched the FT. For a time, the trading mode of mining was rapidly heated up. FCoin converts the transaction fee 100% into an equivalent FT and returns it to the user. At the same time, the platform returns 80% of the fee income to the FT holder. In just two months, FCoin's trading volume reached the top of the world, and exceeded the total of the second to seventh. Subsequently, the three top exchanges announced their battles one after another, and launched their own incentives to attract users. At the same time, many emerging exchanges have emerged, emulating the pattern of “transaction mining + income dividends”.

Platform currency makes digital currency more enriched

Baidu Encyclopedia explains digital currency in this way: Digital currency is an unregulated, digitized currency that is usually issued and managed by developers and accepted and used by members of a particular virtual community. The European Banking Authority defines virtual currency as: a digital representation of value that is not issued by the central bank or the authorities and is not linked to the legal currency, but because it is accepted by the public, it can be used as a means of payment or electronically transferred, stored or traded. . The original digital currency has a single function and is not rich enough. Since the release of the platform currency by the digital currency exchange, the extension of the digital currency has expanded and can be enriched. Today's platform currency should be the best interpretation of the current development of digital currency applications.

The first is that the platform currency has the support of the exchange application. The platform currency of the exchange is generated by the exchange platform. The daily operation of the exchange is obvious. The development of the exchange is personally experienced. The value of the exchange is directly reflected in the platform. The exchanges used by each user are the application of platform currency. Most trading platforms launch their own platform coins after they have all the strengths of their own trading. The better the trading platform is, the more room for the platform currency to rise.

The second is that the platform currency is backed by the exchange and has certain guarantees. The exchange's general profit model is clear and there are certain paths for sustainable development. Although there are many industries that can use the blockchain, there is still a certain distance from the landing, which is not mature enough. Platform currency is better than most altcoins, and many of the cottage currency projects have not landed, even if it falls, it lacks profit points. The trading platform is the central node of digital currency circulation, and the huge user base and transaction volume of the trading platform provide guarantee for the stable development of platform currency.

The third is the expected revenue of the platform currency. The exchange has a profitable business model. The currency circle is located at the top of the market, which is equivalent to the A-share, US stocks and Hong Kong stock markets of the stock market. It only needs to have enough active users, enough quantity and quality of “stocks” to be able to lie down and make money. As long as the coins are mined, there needs to be an exchange, and exchanges with a trading volume must be profitable. The exchange's foreseeable sources of income include withdrawals, transaction fees, and currency charges. As long as the exchange's income rises, the platform currency rise is also expected.

The fourth is that platform currency benefits from the ecological development of exchanges. User eco-platform coins can be used to operate and maintain user communities, increase user stickiness and other functions to attract new users and increase the stickiness of old customers. In turn, the project is attracted by a large user population. The project eco-platform currency mainly serves the project and increases the cooperation relationship between the project and the platform to attract new projects and maintain old projects. In addition, a large number of excellent projects attract users to invest in the platform. On the basis of the actual application, the trading platform uses its own traffic to promote the project process. Compared with the simple white paper project, it establishes a security barrier for investors.

The fifth is that the platform currency has the function of investment and financial management. A common interest is that SGD needs to purchase platform currency as a vote. This allows the sender to purchase platform coins or let the holders vote, which will also generate cash-bearing income. The platform repo and destruction mechanism is also an effective channel for platform currency's own value-added. Basically, most of the platforms have a repurchase policy, which uses the platform currency that is regularly repurchased at market price and destroys or locks the position. As time goes on, the platform's tokens will become less and less, which is a kind of deflationary currency. The supply and demand relationship has led to the rise of platform currency prices.

Platform currency market development

Platform currency is actually an effective configuration tool for the development of an exchange, and it is also an effective extension of digital currency. Platform currency is actually an incremental market that can be built. As long as the platform continues to grow bigger, the market value of platform coins will become larger and larger, and all investors will make money, just like bitcoin. This is what Li Xiandong said in an interview. In the future, before the regulatory currency enters the market, due to the uneven quality of exchanges and the strong speculative attitude of retail investors, it may be difficult to obtain significant improvement. However, the position of platform currency in the cryptocurrency market is bound to become higher and higher. The platform currency will even have the ability to challenge mainstream cryptocurrencies.

At present, platform currency has become another hot spot in the digital currency market. BNB is the first deserved, HT, OKB, KCS is the second echelon, BIKI, MX, One is the third echelon. The price of the BNB from the 1 yuan has now more than 200 times, and HT and OKB have risen from nothing to nearly 30 yuan. The market capitalization of the platform coins of the currency, fire and OKEx all exceeded RMB 45 billion.

In 2019, some media believe that blockchain technology has gradually entered the “mainstream application year”. Not only have many giant companies have high-profile layout of blockchains, but application has become the main theme of the industry. IBM is partnering with Digital Commerce Chain, a group of seven of Europe's largest banks, to build a trade finance platform based on Hyperledger Fabric. The NASDAQ exchange launched Linq, an enterprise-level application based on blockchain. At present, the explosion of large-scale commercial use of blockchain is becoming more and more clear and predictable. For the financial industry, the blockchain will not only be a breakthrough in a certain business or a certain point, but will change the underlying logic and infrastructure and connection methods of the financial industry, and the platform currency application mode of the digital money market. It will be copied and borrowed by the industry and will become a step forward for the industry.