Up a lonely: bitcoin is suspected to be controlled by the makers of overseas trading platform “black box operation”

Source: Shanghai Securities News has been lonely! Bitcoin is suspected to be controlled by the makers, and the overseas trading platform “operates in a dark box” Recently, bitcoin prices have skyrocketed, attracting the attention of numerous investors. On January 7 this year, the price of a single bitcoin exceeded $40000. According to the observation of insiders, domestic virtual currency trading activities have increased. In fact, there is neither sovereign credit nor commercial credit. Virtual currency such as bitcoin has no real value support and is not a stable means of value storage. Relevant transactions are purely speculative speculation. Behind the bitcoin boom, it may be controlled by the makers, or the “black box operation” of the trading platform. According to the monitoring of relevant departments, there are a large number of suspected false transactions in some overseas trading platforms. In 2020, the three major trading platforms have frequent downtime, more than 40 overseas virtual currency trading platforms have run away with money, and many companies are suspected of market manipulation. In this context, we need to guard against the resurgence of domestic virtual currency trading platform. Previously, the people’s Bank of China has organized various regions to clean up and renovate ICO and virtual currency trading platforms, and successively closed 211 domestic virtual currency trading platforms. At present, relevant departments have established a technical monitoring system. If any illegal financial activities are found, they will be transferred to the functional departments of illegal fund-raising and public security organs to crack down on them according to law. In fact, the overseas virtual currency trading platform can attract users to enter the market by upgrading its ranking through “amount of consumption”. In September 2019, the real transaction volume monitoring data released by Alameda research, a provider of market liquidity and over-the-counter transactions, shows that about 66.4% of the transaction volume in the virtual money market is still false transactions. Relevant departments have found that there are a large number of suspected false transactions in the trading platform coinbene. The SPV (daily per capita trading volume) of coinbene is as high as 59.95 bitcoin / person, which is equivalent to 1.2 million US dollars / person according to the average price, which is far higher than other trading platforms. Therefore, it can be judged that there are a lot of false transactions in coinbene. Trading platforms okex, Huobi, binance and bitfinex are also suspected of false transactions. At the same time, the monitoring results show that the outage events of the three major trading platforms are frequent in 2020. During the period from January 8 to December 18 last year, the system of Huobi has been down for 6 times; for okex, it has been down for 4 times from March 12 to July 3 of last year; for binance, there have been 11 times of downtime, including 9 times of sudden failure. There are many trading platforms deliberately frequent downtime, such as flashback, stuck, position can not be displayed and other abnormal phenomena, affecting the normal order, order cancellation, closing position and other trading operations of users, so as to achieve the goal of illegal occupation of user property. The trading platform also lures investors to participate in leveraged trading by issuing leverage account experience bonds. However, the rules of the highly leveraged crypto asset contract market are not perfect, and individual investors as a whole do not have the corresponding cognitive level and risk tolerance. In June 2020, a Dalian man used leverage to participate in virtual currency trading, losing more than 20 million yuan and committing suicide with his wife. Some virtual currency trading platforms with the nature of pyramid selling, or insolvent, often appear the phenomenon of money running. According to the monitoring of relevant departments, in 2020, more than 40 overseas virtual currency trading platforms will have their money rolled out. Since October 2020, dragonex, tokenbetter and other trading platforms have been running. Many companies are accused of manipulating the bitcoin market. Bitcoin prices have skyrocketed. It is suspected that there is a “pusher” behind it. The data shows that the number of large bitcoin addresses (more than 1000 bitcoin addresses) is increasing year by year. The distribution of bitcoin is becoming more and more centralized, which provides conditions for market makers to manipulate the market. TEDA has been accused by traders of manipulating the bitcoin market. According to the monitoring of relevant departments, as of December 31, 2020, a total of 2260 bitcoin addresses had a balance of more than 1000 bitcoin, holding about 7.89 million bitcoin, accounting for 44% of the total circulation of bitcoin; among them, 1742 addresses had never been transferred out, holding about 5.65 million bitcoin, accounting for 30.44% of the total circulation. Moreover, according to the bitcoin Statistics website bitcoin transactions, in October 2020, the top 11 companies with the largest number of bitcoin (holding more than 0.001% of the total amount of bitcoin) accounted for 2.82% of the total amount of bitcoin in circulation in the market. By the end of December 2020, the number of giant whale companies has soared to 28, and its proportion in the total number of bitcoin has also jumped to 5.5%. This shows that the sharp rise of bitcoin price after September 2020 has a positive correlation with the number of giant whale companies. Like the traditional financial market, the virtual money market is also full of many false good and bad news, and due to the lack of supervision, the situation is becoming more and more serious. Using false information to affect the market sentiment, pull up or lead to a rapid decline in market prices, leading to users passive closing positions, resulting in huge losses. The use of public opinion to manipulate market prices, pyramid selling to lure, public opinion to create momentum and other acts in the virtual currency industry repeatedly prohibited. In order to attract investors to invest and realize the purpose of short-term price manipulation, the makers can improve the influence of token by means of floor pyramid selling, online advertising and hiring influential personages to endorse. With the increasingly strict inspection and supervision, illegal financial activities will have no escape. The sharp rise and fall of illegal financial activities may be a “Ponzi scheme”. The virtual currency trading platform often uses some small currencies. Taking advantage of investors’ sudden wealth overnight, it can generate false increases in a short period of time by modifying the background data, so as to attract investors to enter the market, and then make investors’ funds shrink sharply through false decline, or even more directly Run around with money. For example, some “air currency” projects broke through 90% when they were launched online, and returned to zero in less than a month. In six weeks, more than 100 million yuan was taken away, causing huge losses to investors. As for bitcoin, because its account is not associated with personal name, address and other information, it provides convenience for money laundering and terrorist financing and other illegal and criminal activities. The regulatory authorities of various countries may explicitly prohibit trading or introduce policies to impose strict restrictions. It is understood that a number of financial institutions in the United States have submitted applications to the US Securities and Futures Commission (SEC) to issue bitcoin open-end funds, but they were rejected by the SEC due to market fluctuations, industry manipulation and other reasons. The financial conduct authority (FCA) has announced that it will ban the sale of products tracking the price of virtual currencies such as bitcoin to retail investors from January 6, 2021. Increasingly strict global regulation will bring uncertainty to bitcoin’s future trend. For example, on November 26, 2020, influenced by the regulatory measures proposed by the US Treasury Department, bitcoin fell by about US $3000 in one day, a drop of more than 13%. In September 2017, under the framework of the special rectification of Internet financial risks, the people’s Bank of China and other seven departments issued the announcement on preventing the financing risk of token issuance (hereinafter referred to as the “announcement”). The announcement clearly points out that the issuance and financing of tokens refers to the so-called “virtual currency” such as bitcoin and ether from investors through the illegal sale and circulation of tokens. In essence, it is an illegal public financing without approval. It is suspected of illegal selling of token bills, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid selling and other illegal criminal activities No organization or individual may illegally engage in the financing activities of token issuance. Editor: Chen Yu extended reading: last night, bitcoin plummeted by 19%, bitcoin cut “leeks” without being soft hearted. Reporter: fan Zimeng, bitcoin is deeply involved in huge fluctuations. Bitcoin, which has been pushed up by violence, is suffering from repeated setbacks. In recent days, the price of bitcoin has plummeted. On January 11 alone, bitcoin fell by more than $9000, or 19%. As of January 12, bitcoin prices fell 6.8% in 24 hours to $34570. According to the data from bitcoin home, as of 13:55 today, more than 130000 people have burst into positions in the past 24 hours, with the amount exceeding RMB 7.9 billion! In recent years, the mood of the people in the currency circle has gone up and down. In March 2020, affected by the new crown pneumonia epidemic, the market appeared a “dollar shortage”, global investors have sold assets in exchange for us dollars. During this period, bitcoin plummeted by nearly 50%, from nearly $10000 to $3800. Since then, with the global central bank’s large release of water and the flooding of market liquidity, bitcoin, as an alternative asset, has been shining again. In October 2020, bitcoin broke through the $10000 mark again. Driven by factors such as the weak US dollar, the increased risk of inflation and the entry of institutions, bitcoin has successively broken through important barriers. From US $20000 to US $30000, it took less than half a month; from US $30000 to US $40000, it took less than a week. On January 8, bitcoin broke the $40000 mark in one fell swoop, close to the record high of $42000. Come fast, go fast. Bitcoin prices have plummeted since January 9. As of today’s press release, it has dropped more than $6000 from its January 8 high. In December 2017, bitcoin went crazy near $20000. When many analysts predicted that bitcoin would rise to a high of $50000 or even $100000, bitcoin unexpectedly fell sharply to nearly $3000, a drop of 85%. Flash crash may occur at any time in this round of bitcoin rising market, the admission of institutional investors has become the biggest feature. Since the beginning of this year, institutions such as bitcoin Trust Fund (GBTC), PayPal, MicroStrategy, grayscale and Galaxy digital, asset management companies, and square, a mobile payment platform, have emerged more and more frequently in the cryptocurrency market. Yoni Assia, chief executive and co-founder of eToro, an investor oriented exchange and social networking platform, said the composition of people interested in cryptocurrencies has changed. Investors are no longer limited to computer programmers and financial technology advocates, but more institutional investors are coming in. Wang Xinjie, chief investment strategist of Standard Chartered China wealth management, told reporters that from the perspective of institutional behavior, bitcoin is an investment target of alternative assets in its huge asset pool. As a new form of asset class, there may be more and more institutions involved in bitcoin in the future. When the structure of market participants changes, the question of whether bitcoin will collapse still haunts many investors. There is no lack of bearish voices in the market. Industry insiders believe that with the support of liquidity, bitcoin prices are still likely to rise. However, it will face greater risks to enter the board blindly or increase leverage with speculative mentality. Many experts said that in recent years, the rapid rise of bitcoin has accumulated a large bubble, and blind pursuit of high risk is huge. Bank of America analyst Michael Hartnett said in a recent report that bitcoin has soared 180% in the past two months, and the market value of the entire digital money market has exceeded $100 billion. If you visualize the bubbles of recent decades, there is no doubt that bitcoin is the “mother of bubbles”. Currently, according to bitcoin’s website, the current total market value of bitcoin is 653.5 billion US dollars (about 4221.6 billion yuan). Wang Xinjie said that for individual investors, if they participate in chasing high or speculation because of the entry of institutions, they will be greatly impacted. “Bitcoin’s price, if it’s going to go down, will be quick.” Wang Xinjie reminded that a bigger risk lies in the tightening of the monetary environment. If liquidity starts to be curbed for some time to come, bitcoin will face a rapid decline.

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