The “capper” behind the virtual currency fire is wary of the various “coin speculation” information pushing the waves

In the midst of the virtual currency speculation boom, the phenomenon of the uncontrolled spread of various types of information on the Internet platform advocating and inducing speculation needs urgent attention.

The "capper" behind the virtual currency fire is wary of the various "coin speculation" information pushing the waves

In the virtual currency speculation boom, the phenomenon of uncontrolled dissemination of various kinds of information advocating and inducing speculation on the Internet platform needs urgent attention.

Recently, the China Internet Finance Association, China Banking Association and China Payment Clearing Association clearly require that Internet platform enterprise members shall not provide network business premises, commercial display, marketing and publicity, paid diversion and other services for virtual currency related business activities. Shanghai Securities News reporter recently noticed that there are still many internet channels providing a lot of promotional information related to coin speculation.

Peng Kai, a senior partner at Jincheng & Tongda Law Firm, told reporters that, from the recent situation, the coin circle news frequently rushed to the hot search, and various self media and coin speculators “let themselves go” on the major Internet platforms, playing a role in fueling the current rebound of coin speculation.

Market participants believe that the latest requirements put forward in the three major associations’ announcements are undoubtedly a risk warning, sounding the alarm for the propaganda chaos in the virtual currency market.

Coin speculation information is everywhere

The information about coin speculation, advertisements and other marketing information can be found everywhere on the Internet platform, and many investors are thus “in the pit”.

The reporter found in the process of searching for coin speculation channels, Zhihu, Snowball, microblogging, WeChat public number, QQ, Jitterbug and other Internet platforms, you can search for a large number of “guide” investors how to speculate in coins, how to register in the speculation platform links and other information, picture ads and videos.

In one coin exchange QQ group announcement, the reporter found that the group provides links to the registration sites of overseas exchanges such as Firecoin, Dogcoin and Coinan. From time to time, the group administrator pushed registration links in the group to lure investors into the cryptocurrency world.

On Sina Weibo, there are also many “big V” with hundreds of thousands of followers leading the rhythm and promoting the paid coin speculation teaching VIP group. Under these microblogging numbers, there are many fans who directly ask “how to enter the group”. Some bloggers shouted, “Isn’t it nice to be the richest man in the village? The first thing you need to do is sign up for the xx exchange.

Some people in the cryptocurrency circle even spread false information in the cryptocurrency exchange group, falsely claiming that the three major associations had withdrawn their announcements in an attempt to deceive investors.

A person engaged in marketing propaganda in the cryptocurrency circle revealed to reporters that these are the usual tactics of coin issuing companies and virtual currency exchanges. In order to attract investors to open accounts, they will post and build groups through various internet channels in an organized manner, and the so-called successful investors in some exchange groups are actually “trusts”.

The cryptocurrency market is like a “roller coaster”

Various propaganda messages amplify the wealth effect of cryptocurrency investment, but deliberately ignore the high risk of investment.

In the past two days, the cryptocurrency market has been in “roller coaster” mode, with huge price shocks.

On May 19, the price of bitcoin plunged from $42,000 per piece in the morning to $30,000 per piece in the evening, a heavy drop of 30%. Ethereum and other virtual currencies such as dogcoin, which had recently gone crazy, also fell in tandem. The whole cryptocurrency market is in a “foul storm”.

As of press time yesterday evening, the price of Bitcoin was back on the $40,000 mark. Ether is at $2895 per coin, not yet back above $3000.

According to Bitcoin Home’s statistics yesterday, a total of 515,657 people blew their positions in the past 24 hours, with the amount of the blowout reaching 39.225 billion RMB. The largest single blowout order occurred at Huobi-BTC, worth $67 million.

Before the announcement of the three major associations, the cryptocurrency market had already entered a storming and plummeting mode, with huge investment risks.

The reporter learned yesterday in a cryptocurrency QQ group that there were many student investors involved, one of whom claimed to have lost more than $20,000 in the entire dormitory; others said they borrowed money to buy coins and lost it all and were in debt.

Internet platform operation should keep the bottom line

The regulators have repeatedly made it clear that virtual currency is a specific virtual commodity, not issued by the monetary authorities, does not have monetary attributes such as legal compensation and compulsion, is not real money, and should not and cannot be used as money in circulation in the market.

Back in 2017, the People’s Bank and seven other departments issued the Announcement on Preventing the Risk of Token Issuance and Financing, making it clear that virtual currency trading and token issuance and financing platforms are suspected of illegal issuance of securities and illegal fund raising. The market was also rectified, and 211 domestic virtual currency trading platforms have been closed.

Compared with traditional investment instruments, the virtual currency market is immature, characterized by high volatility and extremely high speculation, plus highly susceptible to emotions and other factors, making it extremely risky, which is also the consensus of the cryptocurrency community. Chris Gaffney, president of global markets at TIAA Bank, expects that the cryptocurrency market may have more “roller coaster” quotes in the future. This means that the risk in the cryptocurrency market will continue to increase further.

According to Peng Kai, behind the various information of cryptocurrency speculation presented on the Internet platforms, there are various roles such as fanatical speculators, fire-fighters and intermediaries, and the high risks hidden in the market are clearly revealed. He called on Internet platforms to keep the bottom line, and expected that further cleanup and consolidation of the virtual currency market would be the general trend.

Posted by:CoinYuppie,Reprinted with attribution to:
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