The first major case in the currency circle has been settled, and blockchain supervision has been put on the agenda

category:Finance
 The first major case in the currency circle has been settled, and blockchain supervision has been put on the agenda


There is no big difference between plustokens scam and the traditional internet pyramid scheme. Its just a gimmick of blockchain technology and other new technologies. The main reasons are: ordinary users have serious speculative psychology and are easy to fall into the marketing trap carefully designed by criminals; their recognition of blockchain and digital currency is limited. Jiang Zhaosheng, an analyst at the zero one think tank and a researcher at the digital assets research institute, told time finance.

According to public data, plustoken was launched in 2018, claiming to be the worlds second largest digital currency wallet after imtoken, providing digital currency storage services. On the basis of storing digital currency, plustoken added the function of smart dog to carry bricks, which promoted users to open the smart dog with ten layers of brick moving reward.

The so-called moving bricks means buying low and selling high in different markets. There are two types of moving bricks in the currency circle: one-way moving bricks requires manual operation by users, buying coins from low-priced exchanges, and then selling them to high-priced exchanges to earn the price difference; two-way brick moving is trading in two exchanges at the same time, which requires funds from both exchanges. At present, there are many brick moving tools on the market, and the competition is fierce. For ordinary investors, in addition to having sufficient funds and excellent tools to move bricks, it is also important to find a suitable profit margin between exchanges. If the profit margin is too low, then moving bricks can be quite risky.

Investors lack in-depth understanding of the blockchain industry, and the so-called brick arbitrage by plustoken was feasible a long time ago, but now with the gradual improvement of the market, there is little room for arbitrage. Noah Wang, co-founder of topnetwork, told Time Finance on November 28.

Plus, plustoken divides accounts into several levels. According to the number of offline development and the number of investment funds, the platform divides its members into five levels: members, big families, big names, big gods and Chuangshi, and issues corresponding amount of plus coins as rewards and rebates according to the level of the level, which is a very obvious MLM feature.

Plustoken was exposed to be difficult to withdraw cash from the platform in June 2019. In the first half of this year, plustoken was identified as a pyramid marketing organization by Chinas public security organs. After the case, the public security organ seized the digital currency from the defendant, which is about RMB 25 billion at the current market price. The cumulative value of only bitcoin collected by plustoken has exceeded 300 billion yuan at the current market price.

Noah Wang believes that one of the important reasons why the scam works is that people are greedy. When facing high profits, we must calm down and think and explore the reasons behind them.

Identification of true and false blockchain

How do ordinary investors distinguish between genuine and fake blockchain projects? Noah Wang offers his own suggestions. Among them, the most critical point is to see whether the project really solves the pain point with blockchain, and it is better to have practical application. Blockchain is not omnipotent. The existing blockchain technology is still in the early stage of development, and many practical scene applications cannot be implemented in the short term. Therefore, whether the application scenario of a project needs to be solved with blockchain technology is the key element. Noah Wang said.

Noah Wang believes that another criterion for distinguishing between true and false projects is to see whether the projects form meaningful large-scale consensus. Blockchain realizes large-scale network wide consensus by recording information in distributed account books and broadcasting all over the network while ensuring data consistency. So, are there strong consensus requirements in the existing scenarios of many projects and recorded through distributed nodes? There is no need for the whole network consensus is speculation or money? There are different opinions.

Another key point is to see whether the project is traded on a platform other than the project partys trading platform. Because a good platform will not let some air currency and garbage currency go online to destroy the credibility of the platform. If you can only trade on the project sides own trading platform, it must be noted that this kind of project is likely to be a pseudo blockchain project, and it is likely to be a new currency specially developed by the project side for this project. Because the formal currency can be exchanged on the platform. It is worth noting that there is very little circulation in the market. Most of the money is in the hands of the banker, and try not to touch it. Noah Wang said.

In fact, each blockchain project has its own white paper, which records the development plan of the project. The implementation of the white paper is unreasonable? If even the people who wrote the white paper have no plans for the future, we can say that 90% of them are fake. Noah Wang believes that we should meet with the project team, communicate with each other and ask questions before launching a project. In this process, we can sense whether it is a real blockchain team.

On November 26, the intermediate peoples Court of Yancheng City, Jiangsu Province issued the criminal ruling of the second instance in the case of plustoken, the largest capital in the currency circle. This ruling is final. According to the judgment documents, the seized digital currency is dealt with according to law, and the funds and income obtained are confiscated according to law and handed over to the state treasury.

We support the courts decision on this case, but this is essentially a judgment on illegal acts such as pyramid selling, not a denial of blockchain technology. Noah Wang, co-founder of topnetwork, told Time Finance on November 28.

Plustoken is also a kind of MLM in essence, just in the name of blockchain. At present, blockchain is still a new thing for ordinary people and regulators. It is not easy to identify the actual purpose behind it. Noah Wang believes that the supervision of blockchain technology should be divided into two levels: one is to regulate the blockchain technology according to its specific application scenarios; the other is to formulate special technical standards for blockchain to realize the standardization and unification of blockchain technology.

Any illegal and criminal acts that disrupt the financial order and infringe upon the rights and interests of investors will be punished by law. Its not the domain of digital currency and blockchain. Jiang Zhaosheng believes that, in terms of technology, blockchain is no different from big data, artificial intelligence and other technologies, and should not be treated differently. Instead, technical standards should be established and technical supervision should be carried out reasonably. At the application level, chain governance and comprehensive supervision should be adhered to, and collaborative supervision nodes should be set up to realize effective supervision of behaviors on the chain.

In a recent live online activity, Cai Weide, director of Beihang digital society and blockchain laboratory, shared that the traditional regulatory technology is big data type, cloud platform type, and artificial intelligence type centralized system. However, the new regulatory technology is network-wide, and their regulatory architecture thinking is completely different. Cai Weide once mentioned a very important concept, namely the supervision of the Internet. In the future, all data will be on the blockchain. The network based on blockchain can not only be a traditional big data platform, but also need a network architecture. The new regulatory system is not independent of the financial system, but a combination of the two, that is, the smart contract on the blockchain is for trading, but also for supervision. Hybrid regulation, which will be a regulatory model in the future. Source: editor in charge of times weekly: Zhong Qiming_ NF5619

Cai Weide once mentioned a very important concept, namely the supervision of the Internet. In the future, all data will be on the blockchain. The network based on blockchain can not only be a traditional big data platform, but also need a network architecture. The new regulatory system is not independent of the financial system, but a combination of the two, that is, the smart contract on the blockchain is for trading, but also for supervision. Hybrid regulation, which will be a regulatory model in the future.