Coin speculators extreme deep cold: not only cool, but also frozen on

Coin speculators extreme deep cold: not only cool, but also frozen on

The huge risk of coin speculation is spreading outward from the coin circle, accelerating the erosion of the financial credit of coin speculators and even endangering normal life.

Since this year, the domestic virtual currency regulation has become more and more severe, the price of coins has plummeted frequently, and the speculators are unable to extricate themselves from their losses. In addition to their wealth in the books, some people have their bank card deposits frozen and others are restricted from using WeChat payments.

On the morning of May 21, coin speculator Chen Yong found his two bank cards frozen, one of which was his salary card. Most of his money is in this card, and if he can’t withdraw it for a long time, even his daily life will be a problem.

Chen Yong repeatedly sought to unfreeze it, but never succeeded. On the day of the dog coin crash, he even had the idea of going to Hengshan to worship Buddha and burn incense.

Another speculator, Xiaomin, sold dogcoin on a virtual currency exchange called “Sesame Open” on May 20, cashing out RMB 50,000, and then bought dogcoin on another exchange, Firecoin, with interest.

The next day, she found that her bank card could not be swiped. The bank’s customer service informed Xiaomin that her bank card had been judicially frozen due to “abnormal flow”.

Xiao Min did not expect that the freezing of her bank card would fall on her as a worker. The frozen money was tens of thousands of dollars, and if it could not be unfrozen for a long time, she would have to live a frugal life. In addition, according to the relevant regulations, bank deposits may no longer generate interest during the freezing period, which is also a considerable loss.

In order to find out why, Xiaomin took a careful inventory of her past transactions. She found that in one transaction, the cumulative flow of virtual coin buyers was too large, possibly triggering the bank’s wind control mechanism, which eventually affected herself as a seller.

Xiaomin then added the above-mentioned sellers to Sesame’s “blacklist” of fiat currency transactions. However, the blacklist’s effect is limited to the exchange’s internal, and will have no further impact on the latter other than to prevent future transactions between the two parties.

In addition to having their bank deposits frozen, speculators were also banned from using the WeChat payment function.

In April this year, Wang Meng spent 5,000 yuan to buy a virtual coin called USDT from Huobi. When using WeChat to pay for the transfer, WeChat prompted “the other party is suspected of fraud, please operate with caution”, but Wang Meng was eager to buy coins and ignored the warning to continue the transaction.

A month later, Wang Meng found that the WeChat payment function was frozen because of “suspected fraudulent transactions” and could only be restored in August this year. Wang Meng has submitted four or five applications to WeChat officials, but has not yet been able to unblock it.

wujicaijing noted that since at least 2019, there have been cases of bank accounts being frozen due to coin speculation in the domestic coin circle. According to current policies, cryptocurrency trading is not illegal; however, it is often used for money laundering in black industry chains such as online gambling, telecom fraud, ransomware, and “piggy banks”, and the bank accounts associated with it have high-frequency and large amounts of abnormal capital flows, which can easily trigger regulatory actions such as freezing and banning transactions.

Recently, Bitcoin, dog coins and other major coins have been soaring and plummeting, with bankers and leeks fighting around the clock, as if the “myth” of wealth is always on. The resulting series of chaos has triggered a high level of concern and intensive crackdown by domestic regulators, and a significant increase in the number of cases where coin speculators have encountered bank or judicial freezes.

In the regulatory crackdown, there are many coin speculators like Chen Yong, Xiaomin and Wang Meng whose bank accounts were frozen. But compared to the speculators who blew their positions, their money was not taken out, at least not yet lost, while the former mostly lost their money.

The first of these is the one that is the most popular, and the second is the one that is the most popular.

“Bitcoin is still at $38,500 when I stopped out. The result is that on the morning of the 28th saw a speculative coin group said 1.8 billion options expiration will rise, I momentarily ‘ghost possession’ to buy a long contract, the result of the day the coin has been in the negative decline, that night burst position only 20,000, now intestines are regretted.” Zheng Qi said.

A few weeks ago, Zheng Qi also addicted to speculation coins mindless work, and even fantasies of riches not to work, now no longer hold hope, “the time of the position is very desperate, people really can not be too greedy”.

When you start to speculate in coins, you get a taste of sweetness, so you invest more and more money, but good luck can’t always accompany you, and various black swan events cause the price of coins to rise and fall, and lose more and more, but you don’t want to liquidate your position, and it’s difficult to get out – this is almost the common fate of speculators.

On May 18, China Internet Finance Association, China Banking Association and China Payment and Clearing Association jointly issued an announcement requiring relevant institutions not to carry out any business related to virtual currencies, including registration, trading, clearing and settlement services for virtual currencies, and using virtual currencies as the investment underlying for trusts, funds and other investments.

The virtual currency collapsed. The name of the group was changed from “dog coin player exchange group” to “leek garden sharing group” in less than a month after the author of the alphabet list went undercover.

Many of the group members said that before a slight floating profit, after May 19, the situation took a sharp turn for the worse. Anzhen previously earned 10,000, but now lost his principal. He described the current dog coin as “the big market down it fell hard, the big market up it does not rise”.

In the evening of May 25, someone in the group statistics profit and loss situation. more than 30 speculators, only two people respectively earned 5,000 and 300 yuan, others all floating loss, the amount ranging from a few thousand to hundreds of thousands of yuan.

As a group owner, Zhao Xiao is also very worried, “live in fear, every day when you open your eyes is to see a variety of coin news, in case one day regulatory crackdown to the group, as long as a little wind, the group is not far from dissolution.”

The third-party platform trading data shows that on the night of May 19, the amount of virtual currency blowout across the network exceeded 40 billion yuan; and the general market decline did not stop there, the following days continued to trigger the blowout. May 24 to 25 15 hours, more than 140,000 people virtual currency leveraged trading blowout, amounting to more than 4.6 billion yuan.

But there are still people who are not willing to quit the game. They look to new virtual coins in an attempt to find a turnaround.

The C-suite of the cryptocurrency world has changed again and again. The initial Bitcoin, Litecoin, and later various zoo coins such as Dogcoin and Shiba Inu coin are no longer the main objects of conversation among the speculators. New unfamiliar faces such as MAT, HTMOON, ONECC, etc. have become new favorites. Some people in the coin speculation group said, “If the dog coin doesn’t go up again, I’ll dump it all to buy HTM”.

While the cryptocurrency world is sluggish, stock funds are seeing a wave of gains.

On May 26, A shares broke through 3600 points. Some coin speculators laughed in the group, “the money earned in the stock market, all lost in the virtual currency, big deal, back to the stock market to fight a hand”.

Now, one by one, people are quitting the coin speculation group, and Sharp, who was blown out of his position playing with the contract, is one of them. The company’s main business is to provide a wide range of products and services to its customers.

But some people choose to stay, even after the police prompted the risk still unwilling to retreat.

On May 23, after Anzhen purchased MAT virtual coins on Huobi, she received three anti-fraud SMS messages from the local public security bureau within a day, reminding her to pay attention to the anti-fraud video number, install the anti-fraud app and operate with caution.

This situation is not uncommon. Another coin speculator, Xiao Rong, also received a call from the local police station on the day of the transaction, where the police said the system monitored high risks and asked if she had been cheated out of money recently.

But Anzhen did not quit the cryptocurrency world over this. He told the alphabet list that one of the reasons for speculating in coins is because virtual currency trading is closer to the free market than the stock market or real estate, and there are no complicated trading patterns and operational procedures between retail investors and institutions, making it more friendly to novices.

However, with the introduction of a series of regulatory policies, the convenience of coin speculation is shrinking at an accelerated rate, liquidity is strictly limited, and the so-called “free market” is becoming an unrealistic illusion.

Three days after the “518 Announcement”, the Financial Stability Development Committee of the State Council explicitly proposed that “the next step should be to take targeted measures to carry out focused rectification activities on virtual currency mining and trading.” Subsequently, several virtual currency trading platforms and services announced their withdrawal from China or suspension of trading.

On May 23, Huobi announced that it would suspend the provision of mining machines and derivative services for users in mainland China in line with the latest regulatory policy; mining machine hosting services were suspended for users who had already purchased BTC mining products, and machines were taken offline on the same day of power outage.

Another exchange, Bybit, announced that it is shutting down all accounts registered with Chinese cell phone numbers and restricting logins to all accounts registered with Chinese cell phone numbers as of June 15. Prior to this, Bybit had restricted logins for all Chinese IP users in September 2020.

Among other smaller trading platforms, Mars Cloud Mining blocked mainland China IP access on May 26; and Calculus Bee announced it was suspending sales of bitcoin and ethereum-related products.

Under the exchange changes, coin speculators keep switching their main positions.

Wang Meng is gradually transferring his virtual currency assets to a platform. In his opinion, this platform has a high credit Blue Shield buyers, the transaction is not easy to be blocked, “after all, Firecoin, OKEX recently too many accidents.”

“All in all, you need to be more cautious.” Chen Yong said to the alphabet list. He started speculating in coins the year before last, and compared to previous years, he and his friends feel that this year the coin circle has the most magical up and down events and the strongest regulation.

“We, the small retail investors, currently sell is knee chop, waist chop are light. But in any case, it will not be on the head to do illegal things.” He said.

Retailers are extremely anxious when discussing policy regulation. Some began to claim that it was not safe to trade on Firecoin, while others attributed bank card freezes, harassment by strange offshore calls and calls from police stations to platform problems.

At the same time, they tried various methods to avoid the risk. For example, they try to reduce the amount of money they put in and make several small transactions so as not to be watched by the regulation, or confirm the seller’s flow record before trading. One of the consensus is that “the kind of all large single transaction, it is likely to involve money laundering.”

The downstream speculators’ wealth is shrinking, and the upstream virtual currency “mining” is also entering a cold winter.

On May 18, the building shook in Shenzhen Huaqiang North Saige Building. As a large number of mining businesses gathered in the building, the outside world teased that a large number of mining machines were running at the same time triggering resonance and causing the stairs to shake. Although it is only a laughing matter, the high energy consumption and safety risks of the mining industry have once again become the focus of public opinion.

“Mining” virtual currencies requires the use of a large number of dedicated mining machines to perform high-intensity computing around the clock. This process consumes a lot of electricity, which in addition to increasing the load on the power grid, also runs counter to the national strategic goal of carbon neutrality. At the same time, the virtual currency produced by the mines does not bring tax revenue to the region, nor does it create jobs on a large scale, and there is only a draw but no return.

The regulatory policy for mining soon landed, and the first to strike were inland provinces such as Inner Mongolia and Sichuan. Due to the low price of electricity, these areas have become the first choice for cryptocurrency players to open “mining farms”.

On May 25, the Inner Mongolia Development and Reform Commission issued a policy to crack down on virtual currency mining behavior, industrial parks, data centers, self-provided power plants and other virtual currency mining enterprises to provide sites, power support, energy consumption budget indicators.

Two days later, the National Energy Administration’s Sichuan Regulatory Office issued a notice saying that in order to fully understand the situation related to virtual currency mining in Sichuan, it decided to organize a research symposium on June 2.

“The old miner, Zheng Jiu, used to make money by mining. He told the alphabetical list that under the strict control of the state, there is a high probability that the Chinese cryptocurrency industry will all go overseas this year, or go underground.

Mining farms going overseas is not new; in September 2017, the People’s Bank of China and seven other ministries issued the Announcement on Preventing the Risk of Token Issuance and Financing, and the virtual token market briefly dived and then went underground, with domestic mining farms moving overseas.

Now, under the unprecedentedly tough regulatory situation, domestic mining farms are accelerating their move overseas. In addition to policy factors, some countries richer in natural resources have lower power generation costs and relatively low electricity prices, making them the main destination for this migration.

Some operators of overseas mines said that recently overseas mines have been seriously oversupplied: Russian mines are all full; Kazakhstan’s mines were previously unattended, but in recent weeks the phone was almost burst, and electricity prices in some areas rose 40%.

But Zheng Jiu believes that “even if transferred overseas, electricity, operation and maintenance costs are there, it may not be a long-term solution, the risk is still unabated”.

In the global trend of countries to strengthen regulation, the myth of virtual currency riches has been shattered. The speculators have cut their flesh and left the field, and those who remain are only expecting to lose a little less. Platforms and mines are being forced out of the sea, with their futures uncertain. Thirteen years after Satoshi Nakamoto invented Bitcoin and ignited the wildfire of virtual currencies, the curtain is closing on a long show that began with technological innovation and ended with the beating of a drum.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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