Since 2019, with the launch of the first issue of the currency-raising (IEO), the “project-side tokens have been robbed” has frequently appeared.
Behind the rush to the token, it involves the complicated and complicated interests. In this way, many small exchanges have either “smacked” traffic and made publicity for the project side, and they are all happy; or because of the sharp changes in market conditions, they lost money and were condemned by the community, “causing” a lot of negative condemn.
At the same time, many of the traders involved in it were repeatedly harvested because of the inaccurate points.
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So, how does this catch-up phenomenon have a substantial impact on the project side? What are the benefits of the exchange? Are these tokens circulating on the exchanges true to the real money that can be withdrawn?
Grab the token
The earliest well-known "grab" case in the currency circle can be traced back to last year.
In June 2018, the FCoin Innovation Zone opened the BNB/USDT trading pair in the absence of a voluntary application. At the same time, FCC founder Zhang Jian himself said in a circle of friends: "I personally appreciate Zhao Changpeng and coin security, FCoin is on the line BNB transaction today."
Grabbing the token refers to the act of preemptively launching the token on the online project if the project party does not agree and the designated exchange does not go online.
This became the case of the most influential exchanges that “catch up” tokens.
In August 2018, similar incidents occurred again. At that time, the news of Tianya TYT points on the online exchange was heard, and the industry was in a daze. They all exclaimed that "the big companies finally have to issue coins and go to the exchange." But it turned out that Tianya TYT was just another token that was robbed. According to Tianya’s official statement, it did not apply for the currency to the exchange, and authorized any exchange TYT.
Different from BNB and TYT “encounter”, grabbing the IEO tokens of well-known exchanges has become one of the key means for many small and medium-sized exchanges to obtain traffic in the near future.
Since the beginning of 2019, the IEO of the exchange has stimulated the enthusiasm of investors under the general “opening five times” effect. Projects that are “selected” by the head exchange can get huge amounts of traffic and volume, which in turn attracts a large number of holders to trade.
Among them are the recent hottest IEO projects such as TOP, NEW of the Coin, and Block Cloud of OKEx.
However, this type of rush is often resisted by the project side and the exchange.
Take the first IEO project Top of Fire Coin as an example. On March 25th, before the Firecoin Exchange was still launching the TOP token for the first launch, the TOP token was already appearing on several small exchanges. In the list.
Shortly after the situation appeared, the TOP official community urgently issued a risk warning statement saying that early users of the TOP community, community members and private investors only reached a cooperation with the Firecoin Global, and all circulating TOP tokens will be launched on Prime. Other organizations and individuals who claim to hold the TOP of circulation are not credible.
At the same time, the CEO of the Firecoin Global Station, Qi Ye, also gave a special risk warning on the TOP token.
A statement by the project party and the exchange at almost the same time is sufficient to illustrate the importance of both events.
The TOP token is not the only token that has been stolen. A similar phenomenon occurred on OKEx's first IEO project, as well as Firecoin's second IEO project NEW.
On April 9th, 2019, on the day before the OKEx online BLOC token transaction, the chain trader grabbed the BLOC token without obtaining the consent of the project party.
The move also led to a joint statement by the project side and the exchange.
Immediately thereafter, the tokens of BIBOX's IEO project's original force agreement were also grabbed by the four exchanges of Matcha, HOTBIT, Coinail and Coin, and the heads of the Force Agreement project market prompted investors through different channels. risk.
It can be seen that the participating parties in the IEO and the exchange "do not wait" similar events.
Then, why are exchanges such as Matcha, Chain, HOTBIT, Coinail, and Coinage so aggressively grab the tokens, and what are the benefits and the underlying reasons behind this?
Grab the benefits behind it
“In general, there will be a whole set of exclusive processes on the exchange.”
Wang Xin, a market clerk who is registered as a cryptocurrency exchange in Singapore, talked about the exchange’s “catch up” of tokens, he said.
According to Wang Xin, the formal process of an item on the exchange is such that the project first submits a request for the currency to the exchange, and then the exchange evaluates the project according to the internal review mechanism, and the project token that meets the assessment requirements will be Approved to go online.
For example, according to public information, when the coin is on the line, the cryptocurrency will be audited through the SMARTChain model that the exchange is extremely interested in to ensure the quality of the cryptocurrency.
In the vast majority of unnamed projects, the exchange will certainly charge a fee. "This is, after all, the money gate of the exchange, and the amount of fees is also on the market."
Excerpts from the rules of the coin on the coin: 1) The project submission is complete and accurate; 2) There is no policy risk and meets professional and compliance requirements; 3) Meets the SMARTChain blockchain asset rating requirements; 4) Strong team or community maintenance 5) Projects with actual technical support or practical application; 6) Real and timely disclosure of project information including project white paper, regular development and progress report; 7) Other requirements of the trading platform for online currency trading.
“But the exchange will not use this set of coins on the “to grab” project tokens at all.” Wang Xin said, “because the purpose of the exchange’s robbing is not for the currency, it’s entirely for Attracting popularity and earning fees."
The number of registered exchanges and the number of active traders are private data inside the exchange. We have no way of knowing how much traffic the exchange has attracted by robbing the tokens, but we may not be aware of this issue through the side information.
According to OKEx official data, on April 10, on the day of the BLOC project IEO, more than one million people participated in the project BLOC token reservation, which is enough to illustrate the heat of the project.
"In contrast, some small exchanges may have more than a million visits a year." Wang Xin told 31QU.
Webmaster Tools Statistics: The IP address of the Matcha Exchange website was 0.06 million on the same day.
Then, grabbed the chain of BLOC tokens, did you "snap" to the traffic?
According to the latest statistics of the webmaster tools, the daily average IP traffic of the official website of the BLOC token has been maintained at around 15,000 before April, and after April, it happened before and after the BLOC project. ), the average daily traffic has been maintained at more than 50,000.
The increase in the number of users, in the end, how much data is attracted to the traffic attracted by the BLOC project? Although we don't know the exact data, at least it means that “grab” brings real users and traffic to the chain, and these users have already precipitated as part of the exchange users.
Webmaster Tools Statistics: The number of IP visits on the website of the Chain Exchange website was maintained at around 50,000 after April.
At the same time, according to the data of the chain website, on April 9th, BLOC received more than tens of thousands of BLOC transactions within 24 hours once it was launched on the exchange, and the transaction amount was as high as one million dollars. Although the volume data cannot be compared with the OKEx website, it has become one of the most traded tokens on the exchange day compared to the exchange volume of other items on the exchange.
Aside from right or wrong, from the business point of view, these data and facts reflect the heat of the project, but also reflect the sensitive sense of small trading houses for "business opportunities."
However, standing at the height of the industry, the exchange’s behavior of catching tokens has been widely questioned by investors.
I have questioned the question of how many tokens are true and false.
"The most effective way to verify true and false tokens is to try to withdraw cash. If you can withdraw cash from the exchange quickly and efficiently, then the token is real." Wang Xin said.
In this regard, we specifically try to withdraw the BLOC tokens on the chain after opening the BLOC transaction on the OKEx website. The whole process is the same as the experience of withdrawing other ERC20 tokens.
At the same time, the withdrawal fee is also within the normal range.
But in the matchmaking NEW that Matcha grabbed, we encountered the exact opposite situation. When the Coin traded the NEW token, we tried to cash in on the Matcha exchange and encountered a delay in withdrawal and a high fee.
“Under normal circumstances, Ethereum ERC20 token withdrawal, need to confirm the 12 blocks in the Ethereum network, each generation of a block takes about 9 seconds, so a transfer can take up to 2 minutes, unless the network is serious Congestion, otherwise it is an abnormal phenomenon beyond this time." Wang Xin said.
And we tried to cash in NEW on the Matcha Exchange, the whole process took more than 2 hours.
The withdrawal of 2000 NEWs actually used 1000 NEW tokens as a handling fee. According to the current market value of the time, it was about 11 dollars, and in normal circumstances, it only took a few cents to charge the channel.
"This is actually an obstacle for the exchange to limit user withdrawals and artificial settings," Wang Xin said.
People’s doubts about the exchange’s rush to the token also include price issues.
In addition, the price of the tokens that were robbed, the price will often be smashed to a higher position by the exchange, and finally the user will be quilted and cause huge losses.
Take the first IEO project building block cloud (BLOC) on the line of OKEx as an example. On April 9th, when the chain exchange grabbed the BLOC token, its BLOC token price was only $0.022, and it was in a sideways position at this position. However, after OKEx went online with BLOC, the opening price reached $0.081. This makes it a big profit for users who rush to the chip in the chain before OKEx goes online.
“The reason why the chain will set the price at $0.022 is because the price is about 4 times that of the BLOC at OKEX for IEO. As a result, OKEx opened directly to 17 times, which was unexpected for anyone.” Wang The letter says
For the chain, it is quite a bit like "stolen chicken does not eclipse the rice".
But the opposite happened in the Matcha exchange to grab the NEW token process.
At the beginning of April, the second IEO project of the Coin was left with NEW news, and as early as February, the Matcha Exchange grabbed NEW, and the exchange's token price was from around $0.0025, then rose to around $0.0045. Finally, it skyrocketed to $0.016. However, after the fire coin was launched on the NEW token, the NEW price never reached the high of $0.016.
This is likely to cause huge losses for investors who buy high-money tokens.
The damage done to investors in the secondary market may be smothered by the “investor’s wrong strategy”, but the negative impact on the project community after the exchange’s currency is not that simple.
Take NEW as an example. At the beginning of this year, after the Matcha Exchange grabbed the NEW token, the opening price was only 0.0025 US dollars, which was much lower than the NEW private placement price of 0.004 US dollars, which directly led to the NEW Community’s project. Rights act.
It can be seen that the unresolved project party of the exchange has agreed to seize the token, which will undoubtedly cause market confusion and eventually “smear” the blockchain industry.
Tokens are proof of the rights of the project parties, and their price performance plays a crucial role in the success or failure of the project.
As an important node for the conversion of the project tokens, the exchange will play the role of the token price when it is on the exchange, which exchange, which exchanges are opened for the new tokens. Crucial role.
However, in order to obtain the traffic of popular projects, the exchanges will not hesitate to force the on-line project tokens without the consent of the project parties, so as to attract public attention and increase the flow for the exchanges. The phenomenon is bound to disrupt the market and adversely affect the industry.
Perhaps, as the industry gradually regulates, similar events will be contained.
Text / 31QU Guofeng