Crypto currency collapse, no snowflake is innocent

 Crypto currency collapse, no snowflake is innocent

The second half of 2017, bitcoin after nearly ten years of dormant usher in the explosive growth, reached the highest value of $19212. This not only attracted the attention of the media, also let the fantasy flourishes investors into the office. Although most high after a few months, bitcoin prices have decreased significantly compared to the end of 2017, but with the continuous media hype, currency circle V and incoming investors, bitcoin prices in 2018 months remained at more than $10000.

Google trends data show that the “Bitcoin” in the heat of the 2017 year of the highest value, and keep the heat for a few months. At the same time, the “digital currency” and “ICO” also heat during this period reached the highest value. It can be said by the end of 2017 bitcoin skyrocketing make bitcoin financial star, lack of common sense technique and economics speculators flocked, pushed up the digital currency price also let ICO, digital currency exchange has become a hot word at that time, all kinds of tokens and digital currency exchange stage.

 Crypto currency collapse, no snowflake is innocent A large influx of hot money and the new currency to the total market value of encryption currency to a climax, the peak of more than $795 billion. However, as of the time of writing, Coinmarketcap data show that the global encryption currency total market capitalization is only $183 billion 700 million, compared with the peak period decreased by 77%. Digital currency market is not only filled with all kinds of tokens, but also through the new ICO token is created by the project Everfount, give these tokens with beautiful white paper profit fantasy to attract speculators, speculators believe each digital currency will continue to grow, but no firm reason to support his idea, the greedy driven by financial motivation will be digital currency price to the unreasonable and unsustainable situation.

In the long run, fanatical speculators thought caught hold of a free road to wealth on the ropes, desperately climb, to the end of the rope is still be careless with Butch wolf.

Dream of riches to currency speculators circle crazy money, but it was really control the Reaper cruel harvest. Some of the projects to send the air and then run away, put the coins, a feather to be harvested retail. In the name of rights under the banner of speculators continue to emerge, such as OK founder Xu Mingxing niusong to the police station, the impact of OK headquarters or threatened Dutch act, these speculators attempt to pass the brutal way to recoup their losses.

In fact, no matter where, in what areas, fish from the law does not change, the retail speculators thought he mastered the rules of the game, with incoming, did not think they are waiting for more tragic harvest.

In the face of soaring encryption currency price, some money ring media also lost the reason, it is out of his mind, as it is also profitable to coin media found coin circle chiefs whitewash of various reports, no landing project also may appear in the public view of stately.

This kind of behavior has produced three bad consequences, one is to stimulate the speculative retail nerve, make them more attractive; the two is to let some of the garbage project, the starting point is the RMB quanqian project rapidly expand, causes more harm; three is to continue to report the currency circle chiefs coin ring out of balance. The coin ring is completely become a minority of the stage, in this case, the case of a gangster run away, the harm is tantamount to breaching of the dike arena.

If the speculators and media acts as a booster role in the war in no harvest, so some of the projects are really doing quanqian run away, as clear as noonday. ICO is the result of encryption is another important reason for the collapse of the currency, ICO allows speculators become early investors in a project, and the ICO is difficult to receive strict supervision, to become risk enthusiasts and fraudsters xiangbobo in this great extent.

According to Morgan Stanley said in a report released this year 6 month ICO said investors has caused losses of up to 6.3 billion dollars, 2017 of ICO, 32% and ICOdata.com were unsuccessful; at the beginning of this year 6 month data show that this year has launched the 777 ICO, has been raised to nearly 50 billion dollars. It is estimated that the average life of these projects is only 15 months, of which up to the $4 billion 500 million project will fail before 2020, the failure rate as high as 90%. Unidentified investors carries rich dreams into the Council, to spend money to buy only a few code generated tokens, and then the fantasy of price soaring, onto the pinnacle of life, the person in charge of the project at any time can not knowing the pretext of “exit scam” with the money.

The following are typical ICO scheme

ACCHAIN, PUYIN, & BIOLIFECHAIN
Shenzhen Pu silver block chain company for the project has raised more than $6000 million for its 3 projects, after the government announced a ban on ICO, six project leader was arrested for “export scam”.

CRYPTOKAMI
False comments in the anonymous development team, create a new website and the forum under the help of the project in the project site and the accounts of all closed before investors were attracted more than $12 million.

BITCONNECT
Through multi platform marketing activities actively, BCC’s market value soared to become one of the best 2017 performance of encryption currency. In the UK received notice of cancellation of the Registrar of companies, and then terminate Dezhou securities board order, the digital currency at the same speed crash.

But this is just the tip of the iceberg, Coinmarketcap digital currency record up to more than 3000, only 2080 at present, and most of them are not the circulation of zombie coins. There is no retail speculators in the digital currency project understanding, can not be a clear understanding of the progress of the project case, money to buy digital currency means high risk.

Digital currency exchange is also an important factor leading to the collapse of the emergence of digital encryption currency, currency exchange for digital currency trading scale, improve the convenience of digital currency transactions also allow more retail investors into the Bureau, more funds into the currency circle, but also more conducive to the project “false financing”, so as to make a bigger scam.

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