Since the beginning of 5 months, BTC has been rising for nearly half a month; 5 on Sept. 14, bitcoin prices rose more than 5%, up to $8343.41, compared to the beginning of the year rose nearly 124%. The stolen coins in the early stage, the market generally bearish case, BTC still break through heavy resistance, hit a new high for the year. But before the hot money platform and not too well, even in some period of time, prices fell. BTC is a vampire, IEO, or platform currency value return? This paper will combine the source platform currency value for BTC rose during the currency performance analysis platform.
The source of the core value of currency platform
The coin is issued token exchange platform, fee discount, mainly through the formalities of dividends, repurchase and other ways to repay or drop chibidaigou.
Its value is mainly through the supply and demand of currency platform. Coins, coins and other fire safety OKEX mainstream platform for exchange issued currency deflation model, that is the issue of limited volume and regular repurchase destruction mechanism, token circulation continued to decline, until it reaches a certain value; at the same time, the exchange also in the scenario of expanding platform currency, create demand for the platform to increase the money. The number of coins used; platform money supply reduction, demand increases, will support the formation of its value.
From Figure 1, increasing revenue sources mainly fee discount and repurchase (destruction of part of the transaction all regular dividends, dropping new currency etc.). Although the currency exchange platform usage scenarios is constantly enriched, the most important thing is the transaction fee deduction and repurchase destruction mechanism, the profitability of the two linked directly with the exchange, can best embody the strength of the trading platform. Although the platform currency price reflects the market confidence in the platform, but ultimately the strength of the platform to ensure the token price, users buy platform coins, fancy is the exchange of profitability. Therefore, the key to long-term value of the currency and exchange platform is the core business of money (transaction fee deduction and repurchase destruction mechanism) hook.
BTC jumped under the platform of currency
From the beginning of May, BTC has risen nearly half a month, by the end of May 14th the price up to $8343.41. In the good market, early as the focus of the market platform money and no dazzling performance, but at some point down. From the K-line, after the three major exchange platform coins reached price highs in April has been adjusted. Market dynamics throughout the recent period of time, factors affecting the currency price platform mainly has the following several points:
1. effect of IEO on the platform of currency prices
Since the Spring Festival this year, IEO has become the biggest hot. The two coin project Binance BTT and FET launchPad platform line opened up respectively 10 times and 5 times, the effect of making money stimulate the user in the bear market trading enthusiasm. After the fire coins, OKEX and other exchanges continue to follow up, IEO TOP Network fire coins first project and OKEX project building cloud line after the increase of IEO compared to the highest price reached 27 times and 17 times. The IEO model also led to rising prices of hot money platform.
As shown in Figure 2, in November last year to December 2018 hit a record low in 2019, January, in the IEO platform driven by the heat of currency prices continued to rise. The largest increase in BNB (315%), OKB and HT were up 247% and 156%.
IEO platform driven by currency prices, the main reason is that the IEO effect of making the rich ignite the enthusiasm of the market on the platform currency, thereby stimulating the currency exchange platform needs (Note: the exchange IEO platform to participate in the project need to use coins, currency prices promote).
However, this model has certain limitations of the long term. The platform used as currency line project to raise funds, to keep the user enthusiasm must ensure that each project on-line can allow the user to make money. Let all the projects up or all users to make money, a violation of the commercial law. Once the money effect to reduce or break projects increased, it will affect the user enthusiasm, affect the performance of the platform of currency prices.
From the K line, the IEO project without exception is on-line pre get better income, after the way down, grab that earn the consensus of “break, break the project has become the norm, the enthusiasm of users in slowly reduced, and reflected in the currency price.
Blood sucking effect 2. bitcoin
Recently the price of BTC is “thriving”, in contrast, currency prices continue callback platform in adjustment, other currencies or smaller. The main factors affecting BTC prices have recently upgraded the Sino US trade friction lead to risk aversion, and the traditional financial institutions enter. BTC prices also continue to attract other currency inflows, have blood sucking effect.
Effect of 3. exchange events
1) an 7000 BTC stolen coins
Currency exchange in an May 8th announcement that due to security vulnerabilities hackers in the large-scale, block height 575012 stolen from the coin coin ambrister hot wallet 7000 bitcoins, the total value of up to 300 million yuan. Affected by the event, Anping coins in 24 hours of BNB nt or up to 7.63%, prices began to rise until May 10th.
2) the destruction of OKB repurchase scheme
In May 10th, OKEX announced the 300 million OKB will come up with a detailed plan to destroy the repurchase, coin transaction fees 30% repurchase OKB and transferred to the black hole address destroyed. The announcement attracted a great controversy, within 15 hours or up to 20%. The reasons for the decline: before the happy Friday is to take 50% of the platform fee to pay dividends to suspend dividend after repurchase scheme only destroy coin transaction fees to 30% destroyed, let users feel that OKB holds the gains less.
This shows that the user holds the main currency exchange platform is optimistic about the huge gains feedback, the ultimate value of the currency platform based on the exchange strength or profitability.
In summary, the long-term value of currency exchange platform security lies with the for-profit business (transaction fee deduction and repurchase destruction mechanism) linked; short-term rise or fall sharply with the launch of the new currency platform application scenarios, IEO mechanism through the effect of making the rich ignite the enthusiasm of the market on the platform currency, thereby stimulating the exchange the platform money demand, and promote price increases; when the effect of making the rich reduced user enthusiasm decreased when the currency price will drop slightly. In addition, the platform also affected the overall market price of currency and exchange events etc.