Memoir of Block Chain Vent: You must have been in these four pits this year

 Memoir of Block Chain Vent: You must have been in these four pits this year

Thought without content is empty, intuition without concept is blind.

Kants Critique of Pure Reason

Nothing is more difficult to predict than an encrypted money market, especially in the 17-18 year encrypted money market.

The never-ending currency market is always stimulating investorsnerves.

History has always been strikingly similar. Block chain technology seems to have the same potential to change the world as Internet technology in the 1990s.

However, the application of decentralized block chains is still on paper. It is difficult for governments to reach consensus on the regulation of digital currency. Hackers frequently attack digital currency exchanges.

The greater the hope, the greater the disappointment.

Before changing the world, block chain technology seems to have gone astray in the concept of hype.

Among them, some concepts are proposed to encrypt the money market and take the initiative to regulate the pace.

However, some concepts without appearance can hardly be further developed even if they can ignite the passion of the market in a short time.

Inventory of these concepts is not only for reflection, but also to find the next direction.

Bitcoin ETF

Since the Chicago Options Exchange (Cboe) and the Chicago Mercantile Exchange (CME) launched bitcoin futures successively, the introduction of bitcoin ETF has also been put on the agenda.

ETF is the abbreviation of Exchange TradedFund.

Bitcoin ETF is a kind of fund product directly against the price index of Bitcoin.

As a fund that can be listed on traditional exchanges, it is undoubtedly the best way for institutional investors to enter the encrypted world.

In addition, compared with holding Bitcoin, Bitcoin ETF performs better in terms of risk and security.

However, it seems that progress has not been smooth.

Since 2017, the Securities and Exchange Commission of the United States (SEC) has rejected the listing applications of bitcoin ETF from various institutions.

These include the petty currency ETF application submitted by Winklevoss Brothers, founder of the Gemini Exchange.

Although more than 10 types of bitcoin ETF applications were submitted to the SEC for review in 2018, none of them passed.

At present, the industry generally believes that the Bitcoin ETF proposed by the Chicago Options Exchange (Cboe) will pass the examination with great probability.

The Bitcoin ETF was launched by VanEck, an investment company, and SolidX, a block chain startup.

According to the application documents submitted, the minimum share of the fund will be as high as $200,000.

Such a high price also indicates that the target audience of the Bitcoin ETF is more institutional investors than retail investors.

However, SEC Chairman Jay Clayton also said at the recent Consensus Invest conference in New York that ETF, the encrypted currency, could not be approved until concerns about market manipulation were resolved.

The SEC renewed its review until February 27, 2019, in order to further review the listing application of the Bitcoin ETF.

Many people in the industry regard the introduction of Bitcoin ETF as a catalyst for the currency market to turn bull.

However, judging from the SECs cautious attitude, it seems that it does not want to increase speculative bubbles to the market, nor does it want to be accountable to Congress because of the loss of retail investors.

X modification

If bitcoin ETF is struggling to pass the censorship, then the so-called X-change is empty and meaningless.

Dressed in the cloak of reform, the slogan of the materialization of the licensing economy and the application of the landing entity is just a fantasy.

The purpose of currency reform is to promote the listing and trading of mature products or enterprises after the completion of licensing transformation.

Enterprises can pass assets, assets are not only real estate, works, patents, trademarks, but also an existing integration system.

Passport value and market demand can achieve two-way impact, which also enables customers with passport to benefit, willing to promote related products.

But its just an idealized state.

In reality, apart from the lack of sufficient application scenarios, most enterprises implementing currency reform have more or less operational problems.

This also leads to not only not bringing about reform for the currency circle, but also increasing the burden of the currency circle.

Subsequently, the proposed ticket reform and chain reform are only for change and change, which have no practical significance.

It is only on the basis of the real economy that block chain technology is symbolically adopted.

Not only lack of innovation in the real sense, but also let many traditional enterprises recklessly circle money by means of block chain outlet.

Stable currency

The stable currency has become the favorite in the bear market because of its relatively stable price.

Currently, stable currencies on the market usually link their prices to the dollar price and perform the function of currency.

In addition to the largest stable currency USDT, encrypted currency exchange operators Paxos, Circle, Gemini and so on have launched their own stable currency.

Many people believe that a stable currency can become a central bank encrypting the world.

However, once the real relationship is mapped to the encrypted world, the corresponding problems will arise.

Many stable currencies have no actual anchored value. If they become financial instruments, contracts without physical delivery will easily arise.

Among them, Tether Limited, the issuer of USDT, claims to have an equivalent reserve in the bank as a guarantee.

But they did not disclose which bank they were, nor did they publish third-party audit reports.

Bloomberg also reported that NobleBank, the USDT custodian bank, was insolvent and had suspended its deposit and withdrawal of dollars for a time.

In addition, there are also projects that rely on feedback mechanisms to manipulate stable currency flows, thereby indirectly stabilizing currency prices, including the recently planned closure of the Basis project.

It is not difficult to see that stable currencies, which lack supervision, are issued at will and are not transparent enough, can not survive the bear market.


Since the SEC launched an investigation into the TheDAO project in 2017 and identified it as a securities, how to issue a circular to raise funds under the premise of compliance has become the focus of the project.

STO (Security Token Offering) is the issuance of securitization passes, which aims at the public issuance of communications under the regulatory framework of legitimate compliance.

This concept was put forward by Nasdaq Stock Exchange in the United States, and plans to launch a platform for securities liberalization.

Based on block chain technology, enterprises can match Token with certain financial assets or equity, such as company equity, creditors rights, gold, real estate investment trust, etc.

STO has both the characteristics of IPO and ICO, and draws on their respective advantages.

On the one hand, also issuing securities, STO is better than traditional IPO in terms of participation threshold and programmability, which can create a more efficient capital market.

On the other hand, in addition to being regulated by the securities laws of various countries, because the issuers assets or future cash flows are required as collateral, project fraud and runaway are avoided.

However, STO is not a perfect financing method.

Although STO can accelerate the pace of initial-stage companieslisting and financing, there are many uncertainties in the initial-stage companies themselves.

Once listed, Tokens price may fluctuate dramatically.

In addition, the market still lacks the ability to identify investors.

Investments in start-ups are often accompanied by high risks, and it will be difficult to guarantee investorsearnings, even the safety of principal.

If investors lack the corresponding risk awareness ability, they are prone to disputes.

In terms of policy supervision, China has clearly issued the announcement of STO risk alerts. Unauthorized public financing for the public may be classified as illegal fund-raising crimes.

In addition to some cases of STO compliance approved by the SEC, the regulatory policies of countries are still unclear.

Although STO is an attempt to encrypt the currency industry to embrace regulation and a new direction of integration with traditional financial markets, it seems that the government has no intention of accepting STO.

Although new concepts have been put forward, the incentives for the market itself are still lacking.

In addition to staying in an ideal state, the more crucial reason is that the governments regulatory policy is not clear, and many investors who want to enter the market can only linger outside.

Well see when the next concept of killer applications will emerge.

Source of this article: 45 District Responsible Editor: Wu Mengyang_NBJ11200