Policy reshuffle is intensified: the crisis and new life of virtual currency exchanges

The virtual currency exchange industry may have to "change the sky", which seems to be the consensus of the current currency.

Recently, Beijing, Shanghai and other places have issued notices and documents. Shanghai interprets relevant virtual currency exchanges and urges enterprises to immediately rectify and withdraw. Beijing has clearly pointed out that it is an illegal business operation for a branch of a foreign exchange exchange (focusing on a financial asset exchange) to conduct business activities in Beijing.

Since the "September 4th Incident", the two major places have rarely acted directly on virtual currency exchanges. This has both the regulatory attitude towards virtual currency and the considerations under the new policy.

However, the late supervision may be approaching, and the savage growth of the virtual currency exchange is about to be broken. Everyone in the currency circle, the domestic virtual currency exchanges may officially ushered in the dark. time.

Virtual Currency Exchange: Market Core

The cryptocurrency market is different from the traditional securities market in terms of hierarchy and division of labor. Virtual currency exchanges are directly oriented to users, and there are no other institutions that are redundant, and they are at the core of the market.

In the cryptocurrency market of zero-sum game, the virtual currency exchange can be said to rely on the currency fee and transaction fee to achieve drought and flood protection. Compared with the erratic cryptocurrency market, the exchange has become the only one that can achieve stable profitability. This special existence makes the exchanges appear together.

From the world's first digital asset exchange in 2010, there were more than 4,000 exchanges worldwide in June 2017. Since then, the exchange has exploded – the number has nearly doubled in the first half of the year, reaching 7,700, as of now. According to incomplete statistics, the number of digital asset exchanges has exceeded 20,000. According to the coinmarketcap data, the current type of cryptocurrency is only 4,836.

The strong and stable ability to absorb gold makes the exchange track increasingly crowded, and the unregulated market environment makes some exchanges more and more bold, walking on the edge of the law, in a highly saturated market, hopes for " Surprisingly winning."

HBO three legs

After the "94 incident", domestic exchanges issued announcements to stop all digital currency trading business, and gradually retired the tokens, and went out to sea to seek vitality. At this time, the cryptocurrency market was in ruins.

From July to December 2017, bitcoin prices jumped from $2,000 to about $20,000. At the end of the year, with the popularity of Ethereum 1CO, domestic investment enthusiasm for the cryptocurrency market was once again ignited, and exchanges such as Firecoin, OKcoin, and Coinan returned to the Chinese market again, and gradually formed by means of issuing platform coins. The situation of three-legged.

However, the good times did not last long. After the second half of 2018, the market chill gradually came to an end, and the market activity fell again to the freezing point. At this time, a digital asset trading platform called “FCoin” was quietly launched, and the main transaction was “trade is mining”. The pattern ignited a wave of enthusiasm in the cold winter. On the 15th day of the Fcoin trading on June 13th, the trading volume exceeded the sum of the six exchanges, such as OKEx, Coin Safety and Fire Coin, which caused the concerns of the three major exchanges, although the final model is still a failure. However, it gave birth to the intention of the three major exchanges to seek change.

IEO births new exchanges debut

2019 can be said to be the first year of the blockchain. In this year we witnessed the madness of Bitcoin, and this round of market launch, IEO played a big role. The currency was restarted in January this year, LaunchPad, the starting project BTT soared 10 times, the first to ignite the enthusiasm of the industry.

Subsequently, the fire coins also rushed to catch up, on the line Prime. The TOP project was hit by 130,000 people, and the highest increase was 27 times. Although OKEX was somewhat sluggish, it was announced on April 1 that it would launch the project Blockcloud on the JumpStart platform, but the performance was quite impressive. In addition, many exchanges have followed suit, officially opening the era of IEO.

The setting of the exchange's IEO rules has caused the prices of various platform coins to rise, and the enthusiasm of investors has risen again. In addition, the cryptocurrency market has seen a wave of calves.

At the same time, a group of cutting-edge exchanges quickly rushed out of the box with alternative games, and the most representative was the Matcha Exchange and the BiKi Exchange.

In February of this year, Matcha launched its “LOU” self-proclaimed currency, and through the interception of other platform IEO projects, it grabbed the tokens and became a hit. Subsequently, a batch of users was successfully harvested through online resonance coins and model coins.

BiKi also opened up the situation after a series of “flow currency” on the line, which created a miracle of gains, and then occupied a place in the market through crazy online tokens.

Since then, the three major exchanges have been symbiotic with many new exchanges, and the market is “prosperous”.

Crisis and new life

But the end of the IEO and the model currency is false prosperity, and fraud and pyramid schemes will not bring about fundamental changes.

According to the data provided by the relevant departments of the National Internet Emergency Center, there are 755 kinds of zero or air coins that can be monitored at present, and 102 kinds of pyramid money.

Suddenly, the blockchain has become the hardest hit area for speculation and fraud. As a media unit of the transaction, the exchange is hard to blame, and the supervision may be late, but it will surely come.

Whether it is Biss suspected of unlicensed currency trading or BiKi directly named by the Securities Times, the result of luck is bound to be self-defeating.

The official attitude of the two places will also lead to a new round of exchange reshuffle.

Liu Feng, a professor of business at Binjiang College of Nanjing University of Information Science and a member of the blockchain professional committee of China Automation Society, said that before the complete legal laws and regulations on digital asset transactions, the entire virtual asset trading part still has to comply with the previous regulations. The ministry has made it clear that no organization or individual may illegally engage in the issuance of financing activities for tokens, and this cleanup is precisely the object of these associations.

As for whether the virtual asset exchange is expected to become a regular army, Liu Feng pointed out that it should be divided into two situations. One is for newly established companies or companies with little influence, such as the exchanges ranked after ten, and then basic It is necessary to face business moving out of the country. For those head companies with large transaction volume, it is expected to be guided into the pilot transformation process.

He further pointed out that "in these two cases, I prefer the latter. After all, on the regulatory level, it is definitely more inclined to guide the new industry than to kill it."

At present, the most ideal state may be that the big exchanges are “recruited” and the small exchanges are shuffled out of the sea, but for small transactions, being forced to go out to sea may mean their own “death”, after all, their market Basically all in the country.

But no matter how the situation develops, investors still have to be mentally prepared to meet the mainstream value coins, abandon the air and pyramid schemes, so that they can be invincible!