Recently the virtual currency scene has been particularly lively. In the wave of dog coins led by the market, in addition to Shiba Inu coins, Akita dog coins and other dog-related coins, piggy coins, cat coins, gorilla coins, cow coins, turtle coins and so on have appeared, many netizens flirted with the coin circle opened a “zoo”. The majority of the aforementioned coins have skyrocketed in the last week, and almost all of them have risen by more than 500%.
The skyrocketing numbers made the newcomers to the cryptocurrency world incredibly excited, but then the market gave the “new leeks” a lesson. After reaching the highest price of $0.0000415 with a big negative line on May 11, the piggy coin plummeted in just two days, falling back to $0.00000466, a drop of nearly 1000%.
▲Piggy coin market trend
“I got up in the morning and found that my assets were nearly zeroed out.” The company’s main business is to promote the development of the company’s products and services. He found that he was not the only one who had been cut into leeks.
“The actual fact is that you’ll be able to get a lot more than just a few of these.
Zhu Yi is 27 years old and is a programmer.
“The first time I heard about Bitcoin in 2013, I didn’t take it seriously. 2018 bull market, engaged in a job of organizing virtual currency information, probably found eight or nine hundred coins, but at that time full of contempt for this line, because I found those coins, a little bit of information to know is a fraudulent project, I do not know why there are fools to invest money here. ” Zhu Yi said in an interview with the China New Economic Times (micro signal: jwview).
After leaving this job, there is no more contact with virtual currency, Zhu Yi changed jobs to do programmer.
The programmer has saved 70,000 yuan in a year of hard work. Zhu Yi said, he took these savings do not know what to do, a few months ago to see bitcoin record highs, dog coin a day ten times and other news reports, think the bull market is coming.
“In a bull market, fools can make money. I also studied carefully for dozens of days before I started investing money, thinking that doubling should not be a problem as long as I was buying spot mainstream coins, and it was.” But after doubling it, he wanted to double it tenfold, and mainstream virtual currencies were no longer enough for Zhu Yi. He loves to buy cottage coins more and more, the proportion of his position is getting heavier and heavier, and the cottage coins he bought are getting more and more “moggy”, “I feel like I have become the fool in my own eyes in previous years”.
The company’s main business is to provide a wide range of products and services to its customers. The company’s main goal is to provide a better solution to the problem.
“If this is not the case, I’ll be ‘poking around’ in other coins, even if I’m already in the bag, I’ll be tempted to fill up again. I’m not sure if I’m going to be able to get a good deal. According to Zhu Yi, a wild dog that has never been beaten will never know not to touch a bone that does not belong to him.
The first thing you need to do is to get a good idea of what you are getting into.
In the comment section of the tweet posted by Zhu Yi, there is no shortage of people who have also been “cut leeks”.
What is piggyback coin?
Not long ago, after the Shiba Inu coin, another piggy coin appeared in the market, which rose wildly by more than 1600% in just 4 days.
According to the virtual currency industry big data platform non-small information, piggy coin (PIG Finance) is a pet-type token that was laid out in advance by the PIGC project sponsor in 2016 and emerged in March 2021, with an initial issue volume of 10 million billion pieces, issued in the form of IDO in BscScan, and began to land on various virtual currency exchanges in May.
However, for the PIGC project initiator, CNA did not obtain the relevant valid information. After combing, you can currently buy piggyback coins in more than thirty exchanges such as LBank, Sesame Open, MXC Matcha Exchange.
“It should be noted that it is doubtful whether piggy coins have value, the investment risk is extremely high and caution is needed to enter the market!” Qingtou, the main manager of the Qingtou Club, who has been speculating in coins for more than four years, said to the China New Economic Times.
The majority of the “animal coins” that are on fire are cottage coins with small amounts of capital and weak project parties. As long as a project party has resources and another party wants to “cut the leeks”, they will come up with a new coin, write a white paper, and then find an exchange and a few big V’s to join forces and directly start cutting.
“If you use an image analogy, the trading platform is seen as a ‘casino’, then piggyback coins and other cottage coins are ‘cheaters’, and the cottage coin project side can control 100% of the plate.” The majority of people are easily “leeked” because they don’t understand the trading logic of these cottage coins.
Another investor who does trading strategy analysis in the cryptocurrency circle, Zeng Chuyan, also told CNN Jingwei that cottage coins attract many speculators because of their high intra-day rise and large yield, but they forget the high risk behind the high yield. “Piggy coin is a typical cottage coin, and this kind of coin is nothing but for ‘cutting leeks’.”
How crazy is the animal coin? Single-day rise of nearly 1000%
The price surge and plunge almost follow the virtual currency trading.
Especially for piggyback coins, this feature has been shown to the fullest in the past ten days or so.
According to the non-small number on the piggy coin market data, piggy coin listed less than a month, the highest price in history 0.00004149 yuan, the lowest price in history 0.00000002 yuan, an increase of nearly 10401% in 30 days.
Observe the recent surge of “animal coins”, you can find that they all have a common feature, that is, the coins are extremely low, most of the coins in the surge before the price is less than 7 cents.
In other words, the cost of holding a position to invest in these coins is extremely low. Take the piggy coin for example, you can buy tens of millions of piggy coins by spending only a few tens of yuan.
Qingtou said, “The price of these cottage coins is extremely low, many people who don’t understand are tuning these ‘animal coins’ or ‘plant coins’, who don’t know which one is the next one to go up 10 times or 100 times, who all hope they are the Everyone wants to be the lucky one.”
But buying coins is different from the stock market. In the stock market, it is illegal to put false news and manipulate stock prices, while for virtual currencies, there are currently no relevant regulations to restrain them, so there are thousands of bankers manipulating the market, and even every exchange is a banker, said Aoto.
“Most investors think that the price of the currency is like the weather and is only affected by the general environment, but they do not know that there are ‘executioner’ bankers behind the floating price of the currency that are manipulating it.” Qingtou said.
After the surge, the official “red line”
For the status quo of virtual currency chaos, Xinhua News Agency recently commented that since last year, the bitcoin surge has driven the entire coin circle crazy. Some famous people, including Musk, have become the “bandwagoners” of many virtual currencies. The dog coin and Shiba Inu coin have soared and plummeted in Musk’s “shouting orders. With the rise of coin speculation, investors who lack discernment are becoming targets for hunting.
“The average investor is involved in buying and selling virtual currencies, and the investment risk caused by the huge range of ups and downs is inevitable, plus in the view of many people, this is one of the main channels of speculation, and sometimes may be suspected of illegal fund-raising. So such a ‘gambler’s mentality’ may bring great losses.” Liu Chunsheng, an associate professor at the Central University of Finance and Economics, told China New Business.
On the other hand, Liu Chunsheng said, the policy risk and market risk of virtual currencies are prominent. Virtual currencies are decentralized using the blockchain, without any government role to issue, in other words, that is, without the government’s credit as an endorsement, so in this gray area, the government’s recognition or not is extremely critical impact.
“Plus a word from opinion leaders such as Musk can easily trigger huge fluctuations in the value of the currency, which means the virtual currency credit system has not been established for the time being, so it can lead to such instability, with prices and currency values ‘jumping up and down’.” Liu Chunsheng said.
For the legal risk of virtual currency investment, Guangdong Luoya Law Firm lawyer Chen Quanjin told the China New Economic Times that the current relevant domestic laws on virtual currency have not been clearly defined, and investment in virtual currency can not be said to be legal, but only that it is not illegal.
“However, if it is the use of investment in virtual currency to achieve illegal purposes such as circumvention of foreign exchange controls and money laundering, the ‘investment’ behavior is also suspected of being illegal.” Another industry lawyer, who did not want to be named, added. The lawyer said that virtual currencies like piggy banknotes, whose value, circulation, trading and certification are not determined by the basis, are still largely a kind of trading medium formed spontaneously in the network world, with strong properties of being out of supervision and easy to be manipulated. “Therefore it is simply not suitable for ordinary investors who lack experience and skills, and its development prospects can only be cautiously optimistic.”
Based on the various risks bred by the chaos in the cryptocurrency circle, Liu Chunsheng believes that regulation should be strengthened and there should be sanctioning actions against unregulated virtual currency projects and speculation, so that the majority of investors have a legitimate channel to choose more investment targets, to diversify everyone’s investment interests and reduce the risks of virtual currency.
Liu Chunsheng pointed out that it is also necessary to strengthen the education of investors. Many investors are more impulsive, hearing the “myth of riches” of others also rushed in, and then under the hostage of the market, high buy low sell in heavy losses. Therefore, investors should be guided to be more rational, which may become the focus of the next step.
According to the Central Bank on the 18th, in order to prevent the risk of speculation in virtual currency trading, the China Internet Finance Association, China Banking Association and China Payment Clearing Association jointly issued an announcement, requiring financial institutions, payment institutions and other members not to carry out business related to virtual currency.
(At the request of the interviewee, Zhu Yi, Qingtou and Zeng Chuyan are pseudonyms)
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/he-pushed-the-piggy-coin-at-the-highest-level-and-his-assets-were-wiped-out-overnight/
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