A Plustoken falls, and there are thousands of funds in the teeth.

The cryptocurrency industry seems to be moving in a polarized direction. On the one hand, it shines in the financial sector, and it plays an increasingly positive role in the mainstream society. On the other hand, it becomes a tool for a large number of lawless elements to make a profit and profit. It causes double damage from money and spirit.

Recently, a large number of investors have reported that the Plustoken wallet cannot be used to withdraw coins, which means that the “first fund of the currency circle”, which has attracted tens of billions of cryptocurrency in the past year, has completely collapsed. But behind the Plustoken wallet, there are still thousands of Plustokens screaming at investors, trying to reproduce the Plustoken absorbing gold and continue to undermine the industry.

Since April and May this year, the entire cryptocurrency industry has shown a thriving development trend: mainstream cryptocurrencies have risen sharply, and giants such as Facebook and JP Morgan Chase have publicly announced the issuance of cryptocurrencies, bringing a lot of discussion and attention to the industry and making The cryptocurrency has received more attention and recognition in the mainstream financial system.

But on the other side of the industry, the phenomenon of all kinds of MLM and fund disk project groups is becoming more and more obvious. For example, PlusToken wallet can't raise coins after nearly one year of tens of billions of cryptocurrency, XMX, UUU, EKT, etc. Many air coins are on the dust, and they are pulled for several consecutive days by shouting and walking modes, and the phenomenon of smashing is also one after another, leaving a pile of leeks harvested or ready for harvest.

Obviously, the cryptocurrency industry is developing in a polarized direction. On the one hand, it shines in the financial field, and it plays an increasingly positive role in the mainstream society. On the other hand, it becomes a tool for a large number of people who are guilty of mischief and profit. Investors cause double damage from money and spirit.

For a long time, the Internet has been regarded as a "double-edged sword", and the "double-edged sword" attribute of cryptocurrency is obviously far better than the former, especially in the case of slow progress in blockchain technology, cryptocurrency The negative effects are particularly prominent.

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From the perspective of investors, investment cryptocurrency will not only suffer from losses due to normal market fluctuations, but also suffer huge losses from factors such as the project side and the market. The former is generally based on high profits. It absorbs the user's cryptocurrency and runs the currency with the coin. The latter is generally the project party's use of various methods in the secondary market to attract investors to buy after the high position, resulting in a significant depreciation of user assets.

In the past few days, many investors have reported that the Plustoken wallet, which is known as the “first fund of the currency circle”, has been unable to withdraw cash. The wallet is under the guise of “moving bricks and arbitrage”, claiming to achieve 15%-20% of the month. The rate of return, and through the promotion model based on the level of rebate, attracted millions of users, while absorbing 780,000 Ethereum and other 20 billion yuan worth of cryptocurrency assets.

But in fact, Plustoken's mode of operation is consistent with all Ponzi schemes, and it is impossible to support such high interest income. Even if the project party really "moves bricks", it must also ask a question mark, the money earned by investors. The vast majority are from other newly joined investors, the so-called "demolition of the East Wall to fill the Western Wall." From last year to now, a steady stream of new users has supported the continuous operation of this model, but as new users become more and more, and new entrants’ funds are insufficient to support the profits of the original users, the collapse of the scam will inevitably .

It can be argued that Plustoken is a pyramid market with a blockchain coat, and its high interest rate is not enough for any investor with basic financial knowledge, but millions of investors still have the same enthusiasm as those of P2P investors. Joining, and finally losing as much as those of P2P investors.

This aspect is due to the fact that investors are too greedy and are overwhelmed by high interest rates. In particular, the one-year security period has also paralyzed the nerves of many investors; on the other hand, it has to be attributed to many investors. The lack of understanding of the chain misunderstood the mode of operation of the cryptocurrency industry and thus convinced the project's rhetoric.

Of course, the cryptocurrence industry chaos is of course much more than that. Plustoken is just the tip of the iceberg of the dark side of the industry. Although it has fallen, the "Plustoken" hidden under the water or not yet collapsed is still endless. There are no signs of any reduction.

In other words, the cryptocurrency "wallet" project, which is based on high-yield income, is accelerating its spread to the blockchain industry and the entire Internet. Such projects often attract a group of investors with all kinds of dazzling gameplay. Actively “send and send” to the project side wallet to transfer all kinds of mainstream encryption assets, claiming that they can achieve more than 10% of the monthly income for the user through investment, etc. In fact, they play with the trick of “removing the east wall to make up the Western Wall”. The investor's income is released daily in a ratio ranging from 1% to 2%, based on factors such as a longer release cycle and a net capital inflow.

At present, these projects are represented by UHU, EKT, TNB and other recent soaring currencies, and the literal income is showing an increasing trend. Take UUU and its related project Baidu Planet APP as an example. After users transfer ETH to the APP to purchase the planet, they can get the equivalent purchase amount of 1% EKT every day for 240 to 300 days, which is equivalent to 100 days to return to the original, 300 days. Earn 3 times the income of the principal. For such high returns, the project side stated that it was mainly realized through secondary market investment.

Introduction to the income model of a project

Taking the TNB model as an example, users need to purchase TNB worth $500 to transfer to the wallet, of which 60% ($300) locks the bin dividend, 40% (200 USD) enters the platform bonus pool, and the lock bin can receive the daily dividends. Ten dollars can be returned in 8-10 days, and every time you promote 3 downline, you can get 240 dollars, and the overall income is even more staggering.

What is more unexpected is that these currencies are also rapidly rising after the introduction of the aforementioned plan, and the price of EKT has risen more than 20 times since April, which has caused waves of "wallets." The wave of waves. According to the chain catcher, a well-known project can receive thousands of ETHs per week in the near future.

However, behind the fancy play of this kind of "wallet" is in fact a change from the original. It is nothing more than using the principal of the post-entry to pay the profits of the earlier visitors, some of which will enter the project's pocket and the project In the secondary market, the party gradually pulled out the currency and gradually lost the money in hand, which made it easy to extract a lot of income. That is to say, UUU, TNB and other projects are moving toward Plustoken and going to the crash is an inevitable event.

However, in these "wallet" games, investors are not completely innocent, and most of them are even savvy. With the complete fall of Plustoken, it is reasonable to say that the participants of similar models have already issued serious warnings, but the investors of EKT, UUU, TNB and other projects are still in a constant stream, and the dynamics of the major communities remain high. Investors’ deep-rooted greed and luck have led them to think that they will not be the last people to be cut, especially in the current bull market, the memories of those who have been trapped and harvested seem to be in the eyes of profit-seeking investors. Has faded a lot.

Moreover, the patience of the project side is now more and more sufficient, and it is good at long-term fishing for big fish. Like the operation of Plustoken for a year, such a long cycle is constantly killing and vigilant investors, but also the more The participation of early users in new projects has provided confidence support: the earlier the participation, the higher the risk and the lower the risk, thus supporting the closed-loop operation of these “wallet plates”.

Of course, these phenomena are not unique to the cryptocurrency industry. In the Internet era, various pyramid schemes and P2P wealth management have repeatedly staged similar plots, even under heavy supervision. Therefore, for the more difficult to regulate cryptocurrency industry, various fund-discount projects may have to accompany the development of the cryptocurrency industry for a long time.

But in any case, in the face of all kinds of funds, and the active involvement of many investors, we still need to call on all parties in the industry to do their utmost to compress the living space of such projects, and to do more in the investment education of entry-level investors. More work, this is also an inevitable requirement for the sound development of the industry.

Source / Chain Catcher, author / Hu Wei

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