Author: White Night
FCoin not only sounded a wake-up call for the cryptocurrency industry, but the Internet industry as a whole should also be alert. Some Internet entrepreneurs have adopted a competitive approach that is to continuously finance subsidies to users, occupying market leadership by "burning money", but ultimately money " After "burn out", you have to leave the venue sadly, such as "Little Yellow Car" OfO.
- FCoin nearly 13,000 BTC can not be paid, some people report it, some people save themselves
- FCoin activist reports late at night to block Zhang Jian's relatives, police are counting victims' losses
- Zhang Jian: FCoin is expected to be unable to pay approximately 7000-13000 BTC
- On-chain documentary: the last week of FCoin, the crisis may come to light in 2018
- What should FCoin "Thunderstorm" investors do? The lawyer advised
- Investors ask two core questions after FCoin Zhang Jian's "truth"
"A good way to hell?" No, the route to hell is paved with greed.
To this day, Zhang Jian finally acknowledges that the FCoin problem is not a system problem, a hacker problem, or an internal problem, but a problem that the capital reserve cannot be paid by users.
In fact, as early as the founding of FCoin, the huge transaction volume has made all exchanges jealous, and the controversial "transaction is mining" model has spread to all communities. In fact, some people pointed out that FCoin's business model was "disguised ICO", "Ponzi scheme" and "capital disk", but in the face of huge benefits, the project owner and investors were blinded by greed.
01 Investor's Greed
First, let's review the mining rules of Fcoin again. Fcoin issued a total of 10 billion FT tokens, of which 49% belonged to private equity and 51% belonged to platform traders. The transaction mining unlocked 51% tokens and the remaining 49% tokens will be unlocked in the same proportion. Fcoin converts 100% of the transaction fee into FT through the records of both parties and returns it to the user the next day, and then completes a mining operation. FCoin will distribute 80% of the platform's revenue daily to the user according to the proportion of FT currency / FT circulation. If you analyze this model carefully, you will find that FCoin is actually trying to attract more users to the market to promote transaction activity, and to ease profitable selling. As long as the number of new users is greater, the revenue of old users is higher-and this, Isn't it a "Pond's" model that resembles newcomers after subsidizing them?
Investors are always eager for money. When this desire evolves into greed, it will drive investors to join the crazy profit-seeking crowd and eventually pay the price.
As Zhang Jian himself said, when FCoin went online in 2018 due to the popularity of transaction mining, it quickly rose, so that its personal income was huge in just a few months (the cumulative book amounted to US $ 150-200 million). For any start-up team, this is a fantastic start, even a height that most entrepreneurs can't reach in their lifetimes. Old FCoin users at that time could even earn 6000 BTC.
Driven by such benefits, it is not surprising that a large number of investors have poured into FCoin.
In August 2018, FCoin implemented a "community recommender" program to encourage everyone to stand up and build a community, and then allow FT holders to have voting rights to start community co-governance; in May 2019, the FCoin community launched a partnership system, partnership One can formulate a platform development strategy. The decision-making power of the platform is given to the trader. In July, FCoin launched the rules for innovation and currency on the board, which directly caused Ethereum congestion. All these operations are for one thing: attract new users.
However, the problem is that as long as there are people leaving the FCoin model or the number of new entrants is less than the number of entrants, it will cause the transaction activity to be cold and cause the currency price to fluctuate sharply. This situation will be released without limit in FT And the constant sell-off in the later period became particularly obvious.
Zhang Jian was frank in "FCoin Truth": in the end everything was focused on the two words "currency price".
In fact, some people have previously seen that retail dividends depend on FT release speed, FT price, and other variables that are difficult to assume strongly: If the FT price is relatively stable, and all dividends are received and then invested back in the form of FT, then the compound interest calculation returns This week period is about 35 days; if the FT price continues to rise, this cycle will be greatly shortened; on the contrary, if the FT price drops, high-level retail investors will bear the risk of the return cycle caused by the sharp price decline.
02 Investor Crisis
On February 17, FCoin also announced a slight change to the withdrawal process, which mentioned that "receiving a verification code does not mean that the withdrawal can be successful." Only after receiving the user's withdrawal confirmation and starting the mailbox + asset verification can it Begin mailbox + asset verification. Although FCoin said in the announcement that this is to ensure the security of the withdrawal process, it seems that discerning people have seen that Zhang Jian has used a trick to "slip the word". The more complicated the withdrawal process is, the more difficult it is for investors to get back the funds. .
Zhang Jian's series of practices obviously angered investors. Although it is not yet possible to calculate the total amount of funds lost by retail investors due to FCoin thunderstorms, it is said that many people have lost more than 10,000. Soon after the FCoin Truth was released, a community lawyer explained that Zhang Jian ’s move was to turn a criminal case into a civil case. If he runs away, he can file a case based on fraud, but now that he has acknowledged all the debts, he cannot. File a case against him, and don't know when he will return or when.
However, since 2019, FCoin has started community operations, which means that FCoin currently exists as a community and team, and there is no company entity, so it is difficult to determine who is responsible for the loss of funds and who is responsible for the loss. Debt-Although Zhang Jian stated in the announcement that he would bear the debt of investors.
Not only that, claims in the cryptocurrency industry are often very difficult. Taking Mt. Gox as an example, its bankruptcy trustee Nobuaki Kobayashi has repeatedly postponed the payment plan proceedings. For those who have suffered losses in the hacked Mt.Gox exchange — — That is, for creditors now, it may take a long time to get the claim. (Carbon chain value note: The so-called creditors are those who will eventually receive repayment compensation from the remaining assets after the cryptocurrency exchange goes bankrupt. )
Although FCoin and Mentougou are different, for investors, it is usually more difficult to obtain a claim in a “civil case”.
03 Do investors in FCoin have a future?
According to Zhang Jian, he has decided to "switch the track and start again", and intends to use the profit of the new project to compensate investors for losses. Once the new project is on track, long-term mail withdrawal processing will begin, but "this process may continue 1-3 years. "
However, so far, neither the early investors nor the major investors and the community can contact Zhang Jian himself, let alone which "track" he has changed to. In addition, FCoin's investors include Danhua Capital, Consensus Lab, FFund, Origin Capital, Zipper Foundation, Timestamp Capital, Node Capital, Rising Capital, Singer Capital, and Eight-Dimension Capital. Institutions, as to whether these institutional investors have also suffered huge losses, it is unknown at this time, but it is certain that most of the FT tokens held by these institutions are locked up and restricted in withdrawal, so the losses are almost certain.
Zhang Jian claimed to be a believer in the token economy, and even said, "The token economy is my original intention, but overnight wealth is not, so I am willing to use my overnight wealth to exchange for the original heart of the token economy." But the token The biggest value of the economy is to stimulate the early network effects. The issuer must stabilize the market position with real product or service strength in the middle and late stages, otherwise the value of the token will be zero.
FCoin not only sounded a wake-up call for the cryptocurrency industry, but the entire Internet industry should also be alert. Some Internet entrepreneurs have adopted a competitive approach that is to continuously finance subsidies to users, occupying market leadership by "burning money", but ultimately money After "burn out", you have to leave the venue sadly, such as "Little Yellow Car" OfO.
At least from the current point of view, the entire cryptocurrency industry should take a good look at the regulatory security issues of platform coins, exchanges, and sponsors of token projects.