Buy virtual coins but can’t sell them CCTV unveils “100 times coin” scam

In the first half of this year, with the surge of the overall market value of virtual coins, virtual coins have become the hardest hit area of money fraud, and many people are tempted by the high yield to participate in the trading speculation activities organized by overseas platforms, falling into the trap carefully laid by others.

The unsellable virtual coins

This is not the first time the state has regulated virtual coins with such vigor. 2013, the People’s Bank and five other ministries issued the Notice on Preventing Bitcoin Risks, prohibiting financial institutions and payment institutions from conducting bitcoin-related businesses. 2017, the People’s Bank and seven other ministries issued the Notice on Preventing Token Issuance and Financing, guiding local governments to investigate and clear out suspected illegal issuance of securities, illegal fundraising virtual currency trading and token issuance financing platforms. However, since then, some platforms such as Firecoin and OuYi have moved offshore and still provide services to domestic residents.

In the first half of this year, as the overall market value of virtual coins skyrocketed, virtual coins have become the hardest-hit area for money-raising fraud, and many people have been tempted by high returns to participate in trading speculation activities organized by offshore platforms, falling into the traps carefully laid by others.

Not long ago, Ms. Li found a reporter and said she bought a virtual coin on an offshore trading platform and found that she couldn’t sell it when she wanted to, so all the money she invested was lost.

The actual fact is that you can’t get a lot of money out of your money.

The virtual coin Ms. Li is showing is called TRTC, at the beginning of this year, this virtual coin from worthless, the price has soared. The company is familiar with virtual currency investment transactions, Ms. Li saw the opportunity to buy this TRTC coin on the offshore platform with about six thousand yuan.

The actual fact is that you can think about how good the market was at the beginning, and you think it can go up a hundred times.

Reporter: Did not suspect that something could go wrong?

The main concept of this coin is called liquidity mining, which is a new investment trend in the cryptocurrency circle, and everyone is speculating.

The problem is that it is an isolated phenomenon, or is it a common situation? Another player who is familiar with the process of coin speculation, helped the reporter to conduct a test.

This player told us that this TRTC coin can only be purchased with another digital cryptocurrency “Ether”. In the video, this player is accessing the virtual coin trading platform through the app on his cell phone to buy Ether and then TRTC coins. However, when he tries to sell it, the system shows a failed transaction alert page.

How to concoct “100 times coins”?

You must have understood that this is a complete scam under the new technology, taking advantage of the psychology of investors who do not know blockchain technology, but blindly follow the trend of speculation. So how exactly did such fraudulent virtual coins get released online? Why is it possible to create the illusion of skyrocketing and lure people in?

After repeated research, this company cracked the entire operation process of these money-cheating virtual coins from issuance to control.

A blockchain technology security engineer Feng Changsheng: It is expected that this coin can be issued within three minutes.

Buy virtual coins but can't sell them CCTV unveils "100 times coin" scam

Reporter: Three minutes? Then let’s do a timing, it’s 10:05 in the morning, we ask the technical staff to give us a demonstration.

The first thing is to copy a token code from the main network and put it on the online IDE (programming software), just enter the name of the token, we named it ABCD. then just click “deploy” and put it on the exchange, set an initial price of 1 Ether for 10 ABCDs. Now it has been successful, then we ordinary users can directly find this token in the transaction page.

Buy virtual coins but can't sell them CCTV unveils "100 times coin" scam

Reporter: You can successfully search for ABCD coins, it is now 10:07 minutes, we only took less than three minutes to successfully issue a virtual coin.

Copy a code, change a name, set a price, just a few simple steps, a virtual coin is successfully online trading platform for trading. However, what is even more unexpected is that this worthless virtual coin can not only be put online at will, but also manipulate the price at will.

The actual tokens are in our hands, so we can use the huge amount of tokens we have to manipulate the market price, equivalent to the left hand to the right hand, to pull up the price.

In this technician’s demonstration, when he bought this ABCD virtual coin himself, the K-line chart of the trading platform immediately appeared to rise sharply. Conversely, when he sold, the K-line chart immediately went down again.

Feng Changsheng: Under the brainwashing of a project’s propaganda, ordinary users will blindly follow the trend to buy this token as soon as they see the price increase. When a large number of users flock to buy this token, the project owner will use the tokens he holds to smash the board. There is no threshold for publishing this coin, a decentralized trading platform where any user can trade and publish tokens, and there is no verification that there are no problems with the code.

The trading platform that the technician said had no audit is called uniswap, an offshore trading site and one of the most active trading platforms in the world, the reporter opened the trading platform’s website and found a disclaimer.

Li Xuan: will prompt you that anyone can create such a transaction, it is not audited, there is no concern, it leads to the possibility of blindly participating in it.

币世界-买了虚拟币却卖不出去 央视揭秘“百倍币”骗局

Don’t let the wind of speculation interfere with the healthy development of blockchain

Speculation in coins is not equal to high finance, but high-risk gambling, and in some cases, it is even a violation of the law.

Buy virtual coins but can't sell them CCTV unveils "100 times coin" scam

For ordinary investors, in the face of overseas trading platforms and dealers who have information, capital and chips, and have a huge information advantage, it is hard to escape the fate of “being cut leeks” in the end, so they need to think more coldly. For the practitioners of blockchain, blockchain technology innovation is not equal to the speculation of virtual currency, but how to make blockchain technology go from the virtual to the real, so that “blockchain+” can take root in various application scenarios and inject new momentum for China’s economic transformation and upgrading and high-quality development, which is the proper meaning of technology innovation. (CCTV reporter Zhu Jiang, Zhang Yijin, Wang Haidong, Xue Jianqi, Fujian, Wu Bo)

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