Beijing News Review: Squeeze the virtual currency exchange bubble

Author: Metropolis (financial commentators)

Source: Beijing News

Editor's Note: The original title was "Squeeze the Cryptocurrency Exchange Bubble, Supervision Must Be Faster and More Important"

The construction cost of a virtual currency exchange is extremely low. As long as some users are confused by it and enter the game, the game of cutting leeks can be carried out to obtain huge profits.

On the second day of the new year, the CBRC said it would launch a nationwide campaign to prevent illegal fundraising, mainly targeting illegal fundraising activities such as blockchain. This is only one and a half months before the last time the CBRC advised against the risk of illegal fund raising in the name of "blockchain". Previously, financial supervision institutions such as the central bank and other departments, Beijing, Shanghai, and Shenzhen all issued risk warnings on virtual currency exchanges. However, the Beijing News reporter found that under the strong supervision, many exchanges still committed crimes, and the new routine of "cutting leeks" frequently appeared. IMO, IFO, dual-currency wealth management, deposit deposits and interest earning, and money disk games are gaining momentum, and there are many big names in the currency circle such as Wu Jihan and Sun Yuchen; the project owner can spend 60,000 to run the exchange and build a mouse warehouse Manipulating the currency market; payment channels such as Alipay, WeChat, and bank cards have been banned repeatedly.

The construction cost of a virtual currency exchange is extremely low, and an exchange can be set up to issue coins at 60,000 yuan, especially for various types of virtual coins and virtual currency “wealth management” projects with “zero issuance”. For example, the profits that can be obtained are all net profits. As long as some users are confused by them, the game of cutting leeks can be carried out to obtain huge profits. This is probably the principle of the cycle of various types of virtual currency exchanges falling out and out.

No matter how tall the name is, this kind of virtual currency exchange and various projects launched are the products of advocating that in the short term, some people can become rich, stimulate and amplify the mentality of making quick money for some people. Some projects simply adopt the so-called rebate and remuneration model of a multilayer pyramid structure, which is even more suspected of pyramid schemes. In this mode design with inherent evils, once the user can't withstand the temptation to participate, the fate of being cut into leeks is unavoidable.

Virtual currency transactions always benchmark the blockchain and previous bitcoin and other currency values ​​that were once speculated, such as high prospects, successful cases, and then launched new virtual currencies and projects under innovative packaging, which outlines a brilliant future for Bitcoin users. cake. When all parties involved in the transaction ignore the virtual currency and the actual technology, application and market mechanism of the project itself, "Bo silly" becomes a collective subconscious. Whether it is a virtual currency exchange or a so-called "investor", it is hoped that new offline additions will continue to be added to become the beneficiaries of the benefit chain. However, compared with the virtual currency exchanges that are basically stable and uncompensated, retail investors often find that they are the final offline line. No one takes over and is forced to pay. If they bet too much, they may be ruined.

This is why many departments, such as the CBRC, the Central Bank, have repeatedly issued warning signals to the market. Regrettably, users who have a sense of fortune always think that their chance of luck is higher than others, and in order to pursue 100% profit, they do not hesitate to bear 10,000% risk. The rich color of gambling in virtual currency transactions also allows participants to selectively ignore various issues and continue to become participants in this game and even indirect pamperers.

Therefore, it is difficult to restrict the occurrence of chaos in the virtual currency exchange by issuing risk warnings. More severe rectification actions must be taken against this bubble phenomenon. Through the establishment of reporting mechanisms, victims and internal "whistleblower" are encouraged to provide clues, and those responsible for serious plots and intentional fraud must be severely punished and improved in accordance with the law Its illegal cost. It is necessary to establish a unified registration management model for various types of virtual currency exchanges, and explore strengthening the supervision of their capital accounts, including escrow by third parties, to prevent users' investment funds from being misappropriated and misappropriated.

If the virtual currency exchange is allowed to develop in an uncontrolled and illegal manner, it may eventually cause serious harm to public rights and social economy. For the management of virtual currencies, it is necessary to learn from the previous P2P experience and draw up more targeted and more comprehensive management measures as soon as possible, and to deal with various types of problems on virtual currency exchanges as soon as possible. Only in this way can we avoid the accumulation of bubbles in the virtual currency exchange and promote the fundamental supervision of it.