Ofo deposit tide bitcoin trading platform or will face similar “run” of the crisis

Recently, the yellow car on the ofo deposit back news constantly refresh, long time occupy micro-blog hot search list. According to sina finance reports, as of December 18th, ofo deposit refund queuing system the number exceeded 10 million, to return the deposit size of at least 1 billion.

When people are keen to discuss ofo can survive, the regulatory authorities will intervene, bitcoin community a “currency movement” is brewing.

This “currency movement”, like a butterfly flapping its wings in Brazil, perhaps in the world bitcoin exchange set off a tornado”.

01

Currency movement

In January 3rd, bitcoin blockchain and technology, is a very memorable day.

In January 3, 2009, Nakamoto dug the first bitcoin block, also known as the block. Nakamoto So writes the British “times” the front page article title in creation: Chancellor on brink of block in second bailout for banks (finance minister in second aid bank edge).

This is the story of everyone for having heard it many times.

After 12 days, is January 3, 2019, bitcoin will usher in the 10th anniversary anniversary of the creation of the block.

In order to celebrate the 10th anniversary anniversary of the creation of bitcoin block, Bitcoin Knowledge anchor Trace Mayer combined with other bitcoin enthusiasts, launched a campaign called “Proof of Keys” activities, and proposed to January 3rd of each year as “bitcoin block creation anniversary”.

In this event, Trace Mayer called for bitcoin holders in January 3, 2019 day, their bitcoins from the exchange platform and three party mentioned in his wallet.

Initiated this event, is a celebration of bitcoin creation block 10th anniversary anniversary, the two is to verify the exchange and three party platform is really a good care of the user’s money, have the solvency of three is to strengthen the bitcoin network consensus.

At present, according to the official website of https://www.proofofkeys.com, involved in the The Mobility Company has 11, including South Africa encryption currency exchange iCE3X, BTC.com etc.. Participate in the activities of individuals, listed on the website, there are only some well-known people holding money will have nearly 200 people. On twitter, add tags to participate in this activity in the nickname of holding money even more people.

02

Misappropriation of assets exchange users reasonable?

A few days ago, block chain transparency (Blockchain Transparency Institute) agency has issued a global currency exchange in December to report the transaction data encryption. The report shows that the global trading volume of the top 25 exchange, 2 not only involves a large number of false trading volume or brush.

(screenshot shows only the top 10 exchange)

We all traded on exchanges, exchange their are in charge, charge only coins, currency, trading only occurred in the chain, which is to provide a low cost exchange amount of brush operating space.

Since more than 80% of the exchange are the amount of brush behavior, then, the user’s money is really safe? The exchange is really have solvency? This is the Trace Mayer launched the “Proof of Keys”, an important reason for holding money for currency on that day in January 3rd.

About the solvency of the exchange, in fact, hidden behind a deeper problem: the exchange of users do investment asset misappropriation is reasonable?

Encrypted currency exchange, as a part of the function of the bank, but the user is put in the coin. We take the exchanges and the banks to do comparison.

Bank savings contract is not encrypted, currency exchange. The banks, the user will have money in the bank, interest income. The bank and the depositor is a contractual relationship, the bank hall also can see different periods corresponding to different savings rates, with this layer of contractual relationship, the equivalent of authorization to the bank depositors can make reasonable use of their own money, to do some lending or investment; but for exchange, users will be placed in the assets the exchange, in order to facilitate transactions, user transactions with the exchange, pay the fee, and the user did not reach the exchange rate contracts, so do not have the right to exchange should not divert user currency assets.

From a regulatory perspective, the central bank has a reserve requirements for banks, but for the exchange, is the lack of supervision. Encryption currency exchange not only reserve rate, also often exchange things Juankuan run away.

From the angle of investment risk, they also cannot be mention in the same breath. Due to the presence of regulatory, bank lending business will be subject to strict requirements, the overall risk is controllable. But in the block chain industry, the risk is not controllable.

Different from the traditional stock market, currency market is no price limit, 7x24x365 transaction, the lack of relevant laws and regulations and, regardless of the price fluctuations or investment risk, are not the traditional stock market can be compared.

So is the start-ups blockchain investment risk. During the bull market of 2017, many entrepreneurs to enter the industry chain block, various block chain projects emerge in an endless stream crowded; in 2018, with the continued decline in crypto currency prices, many “unfinished” direct block chain project, some block chain startups also have closed, leaving a feather.

Even if the investment institutions have a large number of professional financial analysts, the blockchain investment performance in 2018 also too horrible to look at.

According to the U.S. hedge fund data research institutions (Hedge Fund Research) released “HFR block chain index” and “HFR encryption currency index”, since the start of 2018 to December 20th, two index fund cumulative loss rate were as high as 69.45%, 68.58%. The block chain industry investment risk is high. If the user exchange misappropriation of assets do investment, substantial losses, the exchange is likely to be unable to pay the final loss of the user. On the contrary, if the market is good, so the exchange to make a fortune, the benefits will not give users. This is reflected in the body of the user, the risk of unequal income situation is very unreasonable.

In summary, the exchange should not divert the user to do investment assets. If the user needs to divert funds, like banks have reached a contract with the user, return.

03

epilogue

Trace Mayer launched the “Proof of Keys” currency activities may occur in two situations: 1, a lot of people involved, resulting in a lot of exchange can not mention now; 2, few people involved, there is no impact on the stock exchange.

Regardless of the final number of participants Proof of Keys currency activities is numerous, this is a good thing for the industry: the ugly behavior of exposed part of the exchange, enhance the user awareness of asset protection, industry more standardized……

Let us look forward to the arrival of January 3rd.

Next January 3rd, you will participate in this event, the money mentioned in his wallet? Why? Welcome to leave a message in the message area.

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