Since the end of 2019, more than six newly discovered domestic virtual currency trading platforms have been forced to close down, according to the Beijing News. Including the case of illegal fund-raising fraud of BISS (currency city) uncovered by Beijing police. At the same time, more exchanges actively shut down.
However, the reporter found that under the strong supervision, there are still many exchanges committing crimes against the wind, cutting leek new routines frequently. IMO, IFO, dual currency management, saving money and interest earning, and cash game play a very important role. There is no shortage of money makers such as Wu Jihan and Sun Yat Chen. The project side spends 60 thousand to operate its own stock market, manipulating the currency market, and Alipay, WeChat, bank cards and other payment channels are repeatedly banned.
New items IMO and IFO go online
Laren is suspected of MLM
In the past, the popular ICO cant cut leeks, said Wang Ying, a former executive at two head virtual currency exchanges. When an idea cant cut leeks, its a new idea..
According to an investigation by a reporter from Beijing News, the current illegal fund-raising methods in the currency circle include IMO and IFO.
After the aforementioned form was hit by the regulation, a new variation of IMO, initial model offering began to be popular. Generally speaking, every virtual currency project needs to go through fundraising development market, while the new IMO is a private platform (money circle private placement, a virtual currency issued by a project has not yet been listed on the exchange for a specific investor to raise funds at a specific price), which can enable the project to obtain periodic income through constant limited private placement.
A team called imoex claims to be building an IMO ecosystem platform. The platform is suspected of issuing currency. According to its global partner recruitment announcement, imotoken is the platform currency used in the IMO ecosystem. The total circulation of platform currency is 5 billion, of which 2 billion is private placement of partners and 3 billion is mining for IMO.
Its a lot to issue more than 100 million yuan. Can they count five billion yuan and have a few zeros? Wang Ying could not resist Tucao.
Recently, the reporter contacted the customer service of the project as an intended investor. The customer service said that after the investor subscribes for the virtual currency of an IMO project, the subscribed virtual currency will be locked, that is, it cant be sold in the IMO exchange, and will be unlocked in a certain proportion every day. If the investor wants to sell as soon as possible, he needs to invite more people to subscribe. The unlocking reward is based on The proportion of the invitees subscription will unlock the locked part of the invitee in equal amount. The invitee will also receive rebate and return it to IMO wallet as reward in the form of virtual currency. The more people are invited, the higher the level of the invitee, the higher the rate of daily unlocking and the higher the amount of rebate.
That is to say, if subscribers want to sell their virtual currency as soon as possible and obtain higher benefits, they need to pull their heads. Under this mechanism, many subscribers have the motivation to pull their heads.
There are also investors in the group who call themselves students and are learning how to invest in virtual currency.
There are three levels of pyramid structure of personnel. The behavior based on the number of development personnel as the basis of remuneration and rebate is suspected of pyramid selling. If it really involves college students, it will cause adverse social impact, so it must be treated with caution. Xiao SA, director of the Bank of China Law Research Association, said.
At the same time, the popular financing method with IMO is also IFO (initial fork offering), which means to generate new tokens by forking bitcoin and other mainstream cryptocurrencies. The hot spot of this popular IFO mode is Libra, which is betting on the online time.
An investor that the reporter knows through IMO promotion group recommended an IFO project to the reporter. The trading platform called coinflex launched the pre-sale of the project in October 2019. Registered IFO participants can purchase Libra contracts at a preferential price of US $0.30. The price of Libra contract represents the probability that investors think Libra will go online before the settlement of the contract on December 31, 2020. For example, if investors think that Libra has 80% chance to go online before contract settlement, they will buy Libra contract with us $0.8. And Libra is successfully launched before the contract delivery, and investors will get Libra at 80% of the price. If Libra fails to go online, investors will not get any return. Investors can choose to short and long Libra contracts, reflecting the markets expectations of Libra.
I have internal news from Libra. I have invested 600000 Yuan myself. You are right to follow me to short. The investor encouraged reporters in this way.
Dual currency financing is supervised and named
Wu Jihan steals behind
On December 27, 2019, in the notice on further preventing the risk of virtual currency trading activities issued by Beijing Securities Regulatory Bureau, the two major financing businesses of dual currency financing and zero interest lending launched by the exchange were named.
In the near future, with the promotion of blockchain technology, virtual currency trading activities are showing signs of resurgence in China. Some virtual currency trading platforms provide virtual currency trading services to domestic residents, and launch zero interest lending, dual currency financing and other projects through digital currency mortgage, which seriously violates the public policy on preventing the financing risk of token issuance issued by the peoples Bank of China and other seven ministries It is suspected of engaging in illegal financial activities and disturbing the economic and financial order. Indicated in the risk prompt.
The dual currency financing named this time was initiated by matrixport, a digital asset financial service platform, and launched on October 23, 2019. Dual currency financial management determines the settlement method according to the linked price to ensure that one of the two virtual assets can obtain income. For example, BTC / usdc dual currency financial management, the linked price is 8000usd. When the market price of BTC is lower than 8000usd, it will be priced and settled with BTC, with more BTC income; when the market price of BTC is higher than 8000usd, it will be priced and settled with usdc, with more usdc income.
Behind matrixport is bitcontinental, the largest miner. Ge Yuesheng, co-founder and chief executive of matrixport, said in an interview that Wu and bitcontinental are shareholders of matrixport.
In November 2019, ufex transaction manager also launched the first phase of u-treasure-dual currency financial product. According to its official introduction, the expected income of the financial product is 120%, which breaks through the highest yield of similar products in the industry.
Matrixport, another lending business named this time, also has a layout. According to the companys official website, users can pledge BTC to matrixport (BCH, ETH, LTC and other currencies are online in succession), obtain stable currency, French currency liquidity, and use it to purchase mineral machinery and other expenditures.
In current financial products, users can transfer idle virtual currency assets into products similar to yuebao. Okex launched Yu Tongbao, and the exchange launched Qian Anbao.
Another popular financial management mode is setting. There are related services in coin on treasure of coin on and wealth management treasure of gate. It is similar to deposit dividend, similar to dividend in traditional stock market, represented by fcoin.
Virtual money financing may encounter risks such as dark box operation, exchange running, etc.
Li Qiang (pseudonym) once invested in the so-called deposit currency to generate interest, but at present, he has been unable to raise the currency, and was judged as a runaway plustoken, with a loss of 50000 yuan.
He revealed to reporters many of plotkens routines..
When the new entrants dont have enough money to pay the bonuses of the latter, the whole project will surely collapse. Its about who runs faster. Li Qiang said.
In fact, with the exception of plutoken, pocketbook and idax, the so-called top 20 exchange, have both run away.
The financial products with high income and pulling peoples heads as gimmicks are the projects used by the exchange to circle money and run away, said Wang Ying. Its not charity, how can you make so much money?.
Gambling game suspected to be ICO in disguise
Sun Yuchen was cut 100 million wave field coins?
Who would have thought that sun Yuchen was also reaped.
Gift box is just.games unique token model. According to the analysis of dapppreview, just.game is a blockchain game about buying, opening and upgrading boxes.
However, the game is regarded as online or crash. After the transaction volume exceeds 100 million TRX, the new players who enter the arena in the future basically participate in the game at a loss. The later they enter the arena, the more losses they make. If sun Yuchen invests 100 million RMB as he said, according to the time of his admission, the 100 million RMB will be cut.
In fact, the wave field is closely related to many gambling dapps (decentralized applications). DAPP running on the wave field public chain has many gambling applications.
In Wang Yings view, this kind of gambling game is ICO in disguise, which has little to do with the game itself. An investor who didnt want to be named also expressed a similar view. He thought that in addition to the block chain games like cryptocat that emerged at the beginning, the later game of guessing, pyramid selling and Ponzi fraud had nothing to do with the game in fact, but the high-risk capital operation under the banner of the block chain.
Guessing, MLM and Ponzi investment games account for a higher proportion. According to dapppreview data, as of June 1 last year, there were 299 competitive dapps, and 32 risk dapps with the nature of MLM and Ponzi investment, totaling 331. The number of real game dapps is 85, accounting for only 20% of the total. From the perspective of daily trading volume, the top ten dapps of the day are almost covered by the guessing games.
Online air currency can make more than 100 million profits
Full coin and Newtons suspected air coin
The familiar formula in the market is air currency. There is no way to avoid air money on the exchange. Cai Yong (pseudonym), who has provided market value management services to several exchanges, said that on the one hand, the exchange will bring a large number of real users to the exchange; on the other hand, it is very attractive for the exchange to collect the project partys money fee and the subsequent transaction draw.
For example, biki, an exchange with more than one air currency, is widely disputed. The project party will pay 700000-800000 yuan to the exchange at one time. According to biki weekly report, from April to may 2019, 10 new projects will be launched every week on average. According to the prediction of 400 new projects launched in one year, biki will charge nearly 300 million project fees at one time.
Why dont we do a business with a capital and a profit? Cai Yong said. Compared with the first-line exchanges, the small exchanges on the third and fourth lines are more unscrupulous.
According to Cai Yong, at present, users mainly purchase bitcoin, Ethereum and other mainstream currencies through first-line exchanges, while small exchanges mainly harvest users by relying on air currency. In fact, users know that the risk of buying coins on small exchanges is high, but they are willing to gamble. After all, some people have made 100 times as much. Large exchanges such as okex have also launched air coins, but they were removed from the shelves in time after discovery.
Cai Yong revealed that many exchanges default to issue air currency.
Wang Ying, a former executive of the large-scale exchange, said that the white papers of these air currency projects are all the same, and a third-party writer team can be hired. A white paper may be worth 200000 yuan at the peak and 5000 yuan at the low. In any case, its all templates. Blockchain is just a few technologies, and all coin technologies are eight to nine. The scenes are easy to visualize.
According to the investigation, in addition to biki, Matcha, VDS, CXC, VBT and other air coins exposed by the media, the old exchange with more than 5 million users is full of money. Newton exchange, once the worlds second largest exchange, is also suspected of multiple rounds of user collection through air currency and capital disk.
For example, on August 19 last year, 10 million tokens entered the address at the end of 4e1f, and on August 28, 9.98 million of them were transferred to the address suffix 9dff, which is the wallet address of the network. On December 22, the Baba currency fell 95% to 0.04usd from a peak of 1.5usd.
Newton exchange once gained the attention of the currency circle with its rising but not falling currency price. Its UPOs trading mechanism requires users to brush the price as well as the volume. Users can transfer their virtual currency into the unsealed area, and the currency price will rise 10 times. However, the users currency is frozen. Only by repeatedly buying and selling in the unsealed area can it be unfrozen. When the user swipes the bill, the purchase price must be higher than the last one. In fact, taking high dividend as bait, using lock up to limit liquidity, using brush unlocking to let investors get static income, and using pull head and build team to get dynamic income, the capital market of Newton exchange overflowed.
Foreign account for exchange
Lawyer: still illegal
Recently, Beijing, Shanghai, Dongguan, Hangzhou, Shenzhen, Henan and other places have supervised the virtual currency trading and virtual currency exchange. However, the reporter found that at present, many exchanges and project parties have emphasized that there is no operational risk for users in foreign countries with the company as the main body.
In fact, many exchanges have moved their registration places to Seychelles, Cayman, Singapore and other countries. Domestic companies, including fire currency, do not involve currency.
Xiao SA said that at present, the most common way for many project related personnel who are trying to issue currency is to have a foreign account, put the server abroad, and carry out road show propaganda in China to sell currency to the Chinese. But first of all, it should be noted that China does not recognize dual nationality, and the so-called foreign account does not affect Chinas legal regulation of its illegal acts.
In China, if the actual issuer is a Chinese national and ICO and other financing objects are Chinese people, such financing behavior is considered illegal. Xiao SA said that the suspected charges are the crime of illegally absorbing public deposits and business operation, while the party who claims to know the project can get private shares, and then illegally occupy the money or currency as his own is suspected of fraud.
Some project parties quibble that Im not financing money but virtual currency , but bitcoin and etheric currency used for financing in reality have certain value and relatively mature pricing mechanism. ICO and disguised ICO (IEO) are suspected of illegal public financing, Xiao said.
Zhang Ning (pseudonym), who works in the head exchange, told reporters that although many projects are registered in foreign countries, they are actually operated in domestic offices. Shenzhen, Guangdong, Beijing and other places are relatively concentrated. Several exchanges including Citex, coin husband, Hufu, ccfox, digifinex, coin tiger operate in Shenzhen office.
According to the documents issued by Shenzhen Financial Office, eight enterprises suspected of illegal activities of virtual currency have been interviewed, including Shenzhen digital singularity Technology Co., Ltd. (bitkan), Shenzhen kaipai Network Technology Co., Ltd. (Star token on Star homepage), Shenzhen Xingyun Digital Network Technology Co., Ltd. (Xingyun coin), etc.
The supervision is very accurate this time, you can clearly feel that they know the currency circle very well, Zhang said. In this context, many exchanges are closed and offline.
The project party and the exchange are like one family
There is a team full-time pull the plate and smash the plate
Wang Ying observed that if some air currency projects cant go to large exchanges, they will choose to open their own exchanges, cutting leeks and running the road are cheap and convenient..
At present, many exchanges rely on one or two coins to open exclusive stores.. At present, both Huo coin and okex have so-called partnership plans. 60000 can rent the technology of large exchanges and set up exchanges with their own domain names, she said.
This way reduces the threshold of opening an exchange and makes the currency circle, which itself is a mixture of fish and dragons, more chaotic. Zhang Ning said.
According to the reporter, in the whole exchange market, there have been 230 closures in more than half a month. Many exchanges similar to 86bex went online and declared bankruptcy one week ago, and most of the projects on these platforms became zero coins issued by the exchange itself.
Even if the project party and the exchange are not the same, they are like one.
In fact, no matter whether it is ICO, IMO, IFO or IEO, the exchange has more or less interests involved in financing projects known as I or O. Cai Yong has provided market value management to several exchanges.
A number of internal staff of the exchange told reporters that the exchange would require the project party to carry out market value management, similar to the pull and smash of the stock market.
Wang Ying, who used to work in the head exchange, said that the big exchange would not require bitcoin, Ethereum and other mainstream currencies to carry out market value management, but those new projects on-line were required to make market value fluctuations by buying and selling, otherwise, many projects on-line will not be bought by anyone, the market value is a straight line, which is too ugly, and no one will buy in the future.
Mr Cai said the market value management of small and medium-sized exchanges had turned them into a big casino. How to make market value management? Cai Yong revealed that market value management is not as simple as the outside world thinks, the packaging and publicity of new projects are more important, marketing means must be innovative, the hot spots of fund-raising methods such as resonance popular in the industry must be rubbed, and the projects in the circle that evaluate the subject matter is very sexy will rise.
A good project also needs a good team, he said. Generally, a successful market value management team will have very professional marketing talents, and the talents who have worked in traditional MLM and capital disk and micro business are the most popular. The most sought after talent in market value management in the currency circle is the team that originally made 3M international MLM.
There is also a need for a tight plan for trading. Although a large number of purchases from the secondary market can pull the plate, how to ship (that is, selling currency) must match the rhythm of the project party. In the process of delivery, the project party should announce some good news, such as repurchase, node lock up, and main online line. When the market is concerned and everyone is willing to buy, the market value management team can deliver the goods.
He shared with reporters a process of market value management: the platform cooperates with the project parties to arrange the main promotion of the project on the platform, and at the same time, the platform telegraph, wechat and QQ group publicize daily to ensure the supply of leek. After the project goes online, it will open at a price of 10%, then quickly pull to 5%, and then make a horizontal rise, that is, a very slow rise. At this time, the project side and the exchange will use their own propaganda and media resources to build momentum. As the leeks begin to come in, the project side and the exchange will start to pull up from 5, and pull to three pieces in a short period, using the psychology of leeks to catch up and kill the fall In the range of three to five, we make band shipment, and finally smash the plate to two cents. This kind of operation can make a billion in two thousand one month.
Users can use
Over the counter purchase of virtual currency
Reporters noted that, including the fire money, Okex, tiger and other large virtual currency trading platform were on-line French currency transactions, most of the virtual currency sellers support Alipay and bank cards, there is also the situation of WeChat payment.
In fact, this practice has been stopped at present. In October of last year, Zhao Changpeng, CEO, said: the currency exchange will launch OTC (OTC) legal tender transactions to support WeChats payment and Alipays purchase of encrypted currencies. As soon as the news came out, Tencent and Ali quickly responded that they did not support virtual currency trading. Since then, the CBRC has repeatedly prompted the risk of illegal fund-raising in the name of blockchain.
The exchange is blocked by the policy of exchanging legal currency into virtual currency through point-to-point trading over the counter, so that it can participate in currency trading on the platform in the future. Said Wang Ying, a senior executive.
After registering as a user of fire currency, the reporter clicks the transaction page of French currency, and the user has two choices: one is to buy currency with one key, input the total purchase amount, select the currency to be purchased, and then place the order; the other is to select the transaction by himself, and the user can see all orders issued by the seller, including quantity, limit, unit price and payment method, and the user can choose by himself. In the notice of transfer, the platform mentions not to use BTC and other words related to virtual currency to prevent the bank card from freezing. Reporters randomly selected the trading information released in the afternoon of January 4, 2020, and found that among the 52 sellers, most of the virtual currency sellers payment channel was Alipay, reaching 42. 30 sellers support bank card transactions. At the same time, there are also over-the-counter transactions by wechat transfer, and 14 sellers support wechat transfer.
Alipay said that Alipay was prohibited from trading in virtual currency. If it found transactions involving bitcoin or other virtual currencies, Alipay would immediately stop payment related services, reclaim businesses involved, and limit personal accounts receivables. Transfer of virtual currency between two users will be handled if risk is identified by risk control system. Wechat also said that wechat payment does not support virtual currency transactions. If any behavior of using wechat payment for virtual currency transactions is found, it will be refunded. Recently, some virtual currency buyers in the southern coastal areas found their bank accounts frozen. Xiao SA said that the sealed accounts are likely to trade in some small exchanges where the real name authentication of identity information is intentionally or unintentionally lax, while the forehand of the transaction is suspected of money laundering, corruption, bribery or other illegal crimes, and the funds flow into the back hands bank account. In order to trace the case, the back hands bank account is frozen. Beijing News reporter Zhang Shuxin Editor Li Weijia proofread by Yang Xuli source: Beijing News Editor in charge: Yang Bin Yu nf4368
Alipay said that Alipay was prohibited from trading in virtual currency. If it found transactions involving bitcoin or other virtual currencies, Alipay would immediately stop payment related services, reclaim businesses involved, and limit personal accounts receivables. Transfer of virtual currency between two users will be handled if risk is identified by risk control system. Wechat also said that wechat payment does not support virtual currency transactions. If any behavior of using wechat payment for virtual currency transactions is found, it will be refunded.
Recently, some virtual currency buyers in the southern coastal areas found their bank accounts frozen. Xiao SA said that the sealed accounts are likely to trade in some small exchanges where the real name authentication of identity information is intentionally or unintentionally lax, while the forehand of the transaction is suspected of money laundering, corruption, bribery or other illegal crimes, and the funds flow into the back hands bank account. In order to trace the case, the back hands bank account is frozen.