Following the destruction of 720 million tokens and three days and three announcements, FCoin has made new progress.
On the evening of February 17, Zhang Jian published an announcement on the FCoin official website called "FCoin Truth", explaining the status, reasons and follow-up plans of FCoin.
Zhang Jian said: The biggest problem that FCoin currently faces is not the problem that the system cannot be restored, but the problem that the capital reserve cannot be paid by users. The internal problems and technical difficulties faced are the result of financial difficulties. The size of the non-cashable is expected to be between 70,13,000 BTC (valued at approximately 68.6 million to 127 million US dollars).
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The cause of this incident was neither external hacking nor internal money running, but data error + decision error. On the day of FCoin's shutdown, Zhang Jian sought help from Li Lin, the founder of Huobi.com, to explore a possible rescue solution, but failed.
Faced with the huge losses of investors, Zhang Jian said that he would be responsible in the end during his lifetime . Currently, FCoin's mail withdrawals are all handled by Zhang Jian. It is expected that the current mail withdrawal processing will last 2-3 months. Subsequently, Zhang Jian said that he had decided to switch tracks and start again, and used the profits of his new project to compensate everyone for his losses. Any significant progress on new projects will be disclosed through public channels. Once the new project is on track, he will begin the long-term mail withdrawal process, which may take 1-3 years . For the other losses of FT and FMEX investors, they are also willing to use the profits of the new project to compensate. The specific calculation method will be discussed in the future.
After the announcement was issued, the pan was quickly fried in the circle.
The first is FCoin investors. Many people have lost assets of up to 10 million yuan. Some of them are trying to save themselves and some are reporting rights.
Followed by exchanges, some small exchanges have started to suspend withdrawals to prevent the payment crisis. Some heads of medium-sized exchanges are beginning to appease users.
Of course, there are people watching the lively eating melon.
Someone saves himself, someone defends his rights
"This time, the losses were heavy, and the accumulated losses were close to 4 billion. Some people added up to 10,000 BTC in financial management, and ft, fm, and fj were countless."
Yang Xing (pseudonym) told Babbitt that he started to transfer more than one million yuan since FCoin went online. This time, FCoin "runs out" and suddenly nothing is found.
He has a large fm household group, and currently only has more than 80 users. The highest user inside holds more than 60 million FTs, with losses close to 100 million. There are still many users who are expected to lose more than 20 million, and Wenzhou Gang ’s losses are even more numerous.
Self-rescue or defending rights has become a serious issue for investors.
Xiaoqiang (a pseudonym) belongs to the former. He told Babbitt that he is mainly engaged in mining and quantification, and came to the FCoin platform for trading at the end of 2019. Because there is no commission fee for trading on FCoin Mainboard A, and FT (platform currency issued by FCoin) can be mined, compared with Huobi, OK and other exchanges, the advantages are extremely obvious, so it is very popular with quantitative investors. Xiaoqiang began to use FCoin platform. Running strategy.
According to Xiaoqiang's strategy, it can basically achieve a monthly yield of 10%, and it will hardly lose money unless the FCoin platform fails.
However, the FCoin platform has stopped trading, and Xiaoqiang's principal and earnings have been unable to withdraw.
"Now the assets are all in fcoin. Zhang Jian issued an announcement of the so-called truth of fcoin in the evening. We are also at a loss. In addition to our own funds, there are also many foreign customers' coins that cannot be withdrawn on fcoin. The mail withdrawal has not progressed for many days. "
Despite the "annihilation of the entire army," Xiaoqiang did not give up hope.
"I personally think that the worst is Zhang Jian's attitude. It has been delayed since the beginning of maintenance, failed to disclose the problem in a timely manner, and did not give investors a good account. Retain skeptical opinions, but will not make a decision. As a fcoin user, I don't trust Zhang Jian, but the exchange system. I hope the issues can be negotiated. "
Xiaoqiang said that now the big households are contacting the social committee together, and they will vote together at night to discuss solutions together.
(Community is discussing solutions)
"Our common vision is how to solve the follow-up problems, whether the community can take over the exchange, debt and debt technology, and other issues that need to be explored. We are willing to cooperate even withdrawing cash, as long as it can roll up and the team rebuild, there is hope. It's money-making in itself, it's maintenance that leads to panic runs, and the funding chain is broken. The problem is not so bad, but Zhang Jian's dictatorship must be changed to allow the community to participate. "
As of press time, the community is still soliciting opinions from investors.
The other group started to report to the police. At the same time, an anonymous "Report Materials" began to be circulated in the major WeChat groups.
"Report Materials" pointed out that on May 21, 2018, the "virtual currency" trading platform FCoin.com (ifcoang.com, fcoin.pro and other alternate domain names) controlled by Zhang Jian and others went online and operated under the state's repeated prohibitions , Under the banner of "blockchain" and "digital currency", issued its platform coin FT (FCoin Token) with various names in disguised ICO. 10 "virtual currencies" such as FJ, FI, FCANDY, ZIP, FT1808, FT1809, FT1908, FT1810, Guteng GU, QOS, FMEX, etc. have been issued in succession. They are mainly sold to domestic investors, some of which have been delisted and manipulated prices , Crazy fraudulent investors, hundreds of thousands of domestic investors suffered less loss of billions of dollars, the amount of fraud is particularly huge.
(Circulated "Report Materials")
Judging from the report materials, defenders believe that this is a fraud and should be filed on the basis of fraud. However, Zhang Jian said in the announcement that “there is life and responsibility to the end”. This method of recognizing debts and slowly repaying them turns criminal cases into civil cases, which not only reduces its own legal risks, but also makes it more difficult for investors to defend their rights. .
"It's all exploded now. This is the premeditated and organized way to run."
Facing this passive situation, Yang Xing does not know how to deal with it now.
"The criminal case has become a civil dispute. This tactic is too clever. It is not useful to report the case." A head of operations of a blockchain security company told Babbitt.
Exchanges have stated their positions
In the face of the FCoin Black Swan incident, some small trading platforms have started to suspend withdrawals in order to prevent the payment crisis.
The heads of some large and medium-sized exchanges began to soothe users' emotions.
OK Kun Chief Strategy Officer Xu Kun said, "Safety and risk control will always be first, forever!"
Bibox vice president told Dan , "What does the crypto asset trading platform spell? The character of the founder. This is what I often say to my friends around us. We are engaged in the blockchain industry, starting with faith and finally character. You Do you dare to start a business with someone who is crazy to the extreme? Do you believe in a person who has no principle and no bottom line? Starting a business is investing, working and investing. If you dare, the so-called huge temptation in front of you will eventually become a cold firework. "
AEX partner Bitcoin 37 degrees said, "Fcoin is a bit pity! It also proved once again: stability of the exchange is more important than fast! Don't play on those radical platforms, they will fall down one by one for you."
In the current lack of supervision of the currency circle, it is difficult for exchanges to prove themselves innocently. If they do not operate well, there will be a large-scale run on the stack, and no platform can carry it down.
Ren Renbit's founder Zhao Dong pointed out for a while that he had not seen any exchanges that had not embezzled user funds without being transparent and unregulated . When Mtgox had a problem that year, Zhao Dong wrote a code to analyze their data and found that it was not because hackers stole their money that caused them to go bankrupt, but because Mtgox continued to misappropriate user assets to sell BTC short, resulting in a shortfall of 1 million BTC. As long as it is unregulated and opaque, there will be countless Mtgox creations.
FCoin was established by Zhang Jian and others in March 2018. Unlike traditional centralized exchanges, Zhang Jian calls FCoin a community, and by virtue of "transaction is mining", FCoin has become a hit. The so-called "transaction is mining" means that FCoin will return 100% of the transaction fees paid by users in the form of FT the next day. On June 13, 2018, the 15-day FCoin trading volume exceeded the sum of 6 exchanges including OKEx + Binance + Huobi.
You know, at that time, the entire cryptocurrency market had fallen into a bear market. In the face of falling currency prices, traders were completely enthusiastic. The emergence of FCoin turned out to ignite the enthusiasm of investors, and some even regarded it as a bull market. Only other exchanges followed suit. FT prices have risen dozens of times in a short period of time. In the face of this boom, some people praised it, while others thought it was a Ponzi scheme and was bound to crash.
However, FCoin's "transaction mining" model design has attracted a large number of wool parties and robots. The unlimited release of FT and the constant sale have also caused the price of FT to fluctuate violently, and eventually investor confidence collapses and fails.
Zhang Jian has also tried to use currency reform, FOne, etc. to restore the trend and stabilize the currency price. But contrary to expectations, this series of imperfect measures has accelerated the disillusionment of the FCoin bubble. Since July 2018, FCoin has almost disappeared from the sight of people in the domestic currency circle.
Until March 2019, after the exchange of the currency circle, namely mining, disappeared, the IEO model began to go crazy. Zhang Jian also chose to "return" at this time. In March, he successively launched "sustainable mining", a new income distribution plan, and a "finance management mining" plan. FT rose 280% in a month in March.
People seem to see the rise and fall of FCoin.
However, judging from the huge deficit of FCoin at present, it is basically a lack of skills.
What led to the fiasco of FCoin? The founder of Zhimi University, Liu Chang, attributed it to token financing.
"The history of FCoin is a typical case of the wrong course of blockchain development caused by the bull market in 2017. This error started with token financing, which is also ICO.
The success of token financing is that, based on a decentralized cryptocurrency system, the issuance and circulation of securities has achieved major technological breakthroughs, and the cost of issuance, management and circulation has dropped significantly, and the scope has been expanded to the world. A variety of blockchain projects have achieved great financing success with this new securities model (I call them crypto securities). This has inspired the blockchain application model with token financing and incentive mechanism design as the main body.
This is the wrong way. The success of financing is mainly due to the lower threshold of securities issuance and wider circulation, while there is almost no supervision. A small number of blockchain projects faced the global investment market that has been suppressed for 100 years under supervision, which brought the madness of 2017. In fact, most projects will not succeed at all. Even if a project is likely to succeed, it cannot grow normally due to the impact of liquidity.
The beginning of the bear market, projects without early intentions cashed in early, and even turned gorgeously. Instead, projects pursuing dreams cannot withstand the plummeting and continuous consumption of currency prices. On the one hand, with strong confidence in the incentive effect of tokens in a bull market, on the other hand, investors and survival pressures are forced to one by one rely on token incentives, pull people, and market manipulation. Even so, the fate of failure is unavoidable.
Fcoin began in a bear market and created a myth of rapid rise through token incentives, but also pushed the adverse effects of token incentives against the market to the fullest. I hope the industry can deeply reflect on this case and rethink it. What is the real value of the so-called blockchain? " As of press time, the FCoin platform is still accessible, and Zhang Jian has recently released "Instructions on the Optimization of the Withdrawal Process of Mail", which has changed the process of mail withdrawal.