MOL Moore Chain Academy: With Bitcoin as the fulcrum, this year's cryptocurrency has become popular around the world. Soaring valuations, increasing trading volumes and overwhelming news have sparked unprecedented speculation in this space. Although the market value of Bitcoin has shrunk dramatically, there are still countless companies and institutions that want to share a piece of it.
Under the regulatory gap, many pyramid money and air coins have been born. Even in the eyes of the outside world, “blockchain” and “coin” have become synonymous with “fraud”. More than 80% of 1CO projects in 2017-2018 are fraudulent, which means that 80% of the big players are running the cuts.
Today, the founder of the Moore Chain MOL, Qian Haitao, will reveal what kind of routines are generally used by companies and companies that want to enter the market.
First, by the concept of blockchain
Responding to the popularity of Bitcoin, there are more and more companies trying to relate to it. Such companies are generally on the verge of life and death, and will not carry out in-depth business in the field of cryptocurrency. They just want to use the concept of "blockchain" to speculate themselves and fight again.
Long Blockchain Corp is a good example of its predecessor, the famous Long Island Iced Tea Corp. Due to the low market value, Nasdaq said in October 2017 that it would delist Long Island Iced Tea Company. Long Island Iced Tea was renamed the Long Blockchain Company at the end of December 2017 and began its business separation.
After that, the company's share price soared, the stock price soared 183% a day, the market value once reached $67.4 million. The company is therefore exempt from being delisted by NASDAQ. However, the good times did not last long. After the skyrocketing, it was a plunge. After the hype in April this year, it still suffered a delisting.
Film pioneer Kodak also made a blockchain image management platform in conjunction with the British media company in January this year, and also launched Kodak coins, trying to save the dying stock price. On the same day, Kodak's share price soared from $3.1 to $13.13, a 130% increase, and then suffered a plunge.
The hedge fund company Kerrisdale Capital subsequently released a 22-page report stating that Kodak is on the verge of bankruptcy, and its blockchain and encrypted digital currency plans are just for selling stocks and are not reliable.
Second, 1CO project fraud
Unlike IPOs that are highly regulated, require high transparency, and a large number of financial accounting disclosures, 1CO can operate freely without restrictions.
So many scammers seized this loophole, slammed the issue of air coins, pyramid money, got a fake white paper, spent some money on roadshows in various places, hired water soldiers on social media to advertise their reputation, and attract leek. After the investment, you can quickly harvest the road and make a quick wave.
Judging from the endless stream of "blockchain fraud" cases, the scams used by criminals are all "old routines", but they have caused tens of thousands of people to recruit. Is the swindler too smart, or is the investor too simple? It must be said that the frequent occurrence of "blockchain fraud" really cuts the weakness of many ordinary investors.
Third, the fake lending platform
There are a lot of small-scale platforms that have played this routine, and online loans can't beat big companies, so they will seize resources.
They claim that they can use cryptocurrencies to make mortgages and promise to be able to redeem them at any time, which is much more attractive than real online loans. However, once the borrower turned the currency, there was no news on the opposite side.
Fourth, manipulate the currency price
Due to the lack of supervision, the opportunities for large households to manipulate the market have also increased. Some market value management companies and groups will aim at a currency with a small market value and easy to pull, and buy in large quantities to push up the price of the currency. At the same time, with propaganda and hype, further manipulate the currency price artificially, and wait for the leek to be called After the "inflated" and "demon money" are attracted to the market, they will immediately sell off the cash.
Although this practice is illegal in regulated securities markets, it is not uncommon in the currency market. There are a lot of teams who have made a fortune, and they still use this road again and again.
V. Blockchain Ponzi scheme
The word "Ponzi scheme" has been ruined by the financial community, but combining it with the blockchain is enough to create new disasters. The founder of the project promises high returns to the investors. If the investors bring more customers, they will get higher returns and dividends, go online and develop the line, remove the east wall and make up the Western Wall, and cycle. Reciprocating.
The only difference from the traditional scam is that the money is better deceived after adding the word "blockchain".
The company’s top executive decided to run the money with money one day, not to pay dividends to everyone, and the wall that was demolished could not make up, and that the end of the Ponzi scheme was declared. In short, it is the "MLM model", such as Kitcoin and Walker King. This routine has become extremely common in the currency circle.
Recalling the "Da Tang Coin" online pyramid scheme that was cracked by the Xi'an police in April this year, the criminal gang publicly held a promotion meeting in many cities at home and abroad, and set up a 28-level in charge of agent. In just 18 days, the registered members reached tens of thousands. people. For another example, in the “Titanium Coin” case that was seized last year, “Customer” was rewarded with 10% of the “mining machine” rental fee for each development of a downline leased “mine machine”. From selling physical goods to "rental machines", still can not escape the essence of pyramid schemes.
There is also a kind of "foreign for the Chinese" and even "export to domestic sales." For example, in the case of the “Vicacoin” case involving a total amount of 1.6 billion yuan, the organization’s MLM website and marketing model were established by the Bulgarian organization and the server was located in Denmark. After China banned the ICO in accordance with the law and closed the domestic virtual currency exchanges according to law, the phenomenon of “export-to-domestic sales” of fraud organizations began to increase. Many “scammers” have become “foreign professors”.
Blockchain definition
In the words of Qian Haitao, the founder of Moore Chain MOL, “The blockchain should make the Internet a genius, an open network of merits. Based on the atomic physics world, the government maintains order, and reasonable humans have proliferated. Living infrastructure, real estate, automobiles and other real estate and the real economy have their own laws, and it is not necessarily necessary to monetize their numbers. We believe that any exaggeration of the scope of technology available is a deceptive behavior. So Bitcoin and Moore are all focused on digital assets that most require blockchain technology."
Qian Haitao, the founder of Moore Chain MOL, often warns everyone: "When the winter is over, the more the scammers are, the more they have to keep the principal they depend on." As a smart investor, there are several ways. Potential scams can be identified and avoided.
Before investing, it is important to understand the company's business model and management. Conduct in-depth due diligence and SWOT analysis to comprehensively analyze the basic situation and feasibility of the project;
Note if there are too many terms in the white paper. The purpose of the white paper is to simplify complex issues and to provide readers with a brief and concise introduction to the organization's philosophy, ideology, vision, and implementation roadmap. Therefore, the “astronomical” white paper full of complex terms is a dangerous signal, and the company behind it is to cut the leek;
For investors, it is also important to pay attention to the circulation of coins and the evaluation of project companies by the outside world. Even legitimate companies with a reliable business model may face project failures if the market environment fails or some nodes are not properly designed.
Whether it is a bear market or a bull market, harvesting will not stop. Even if the capital has a set of thousands of dollars, as long as we can keep the money, we will have a chance to win!
Finally, I shared a paragraph from Mo Hailin’s founder, Qian Haitao: “I firmly believe that cryptocurrencies will change the world, replace the stock market, most currencies, and pay for machine-to-machine, Internet of Things, streaming media, and forecasting the market. Power, governance systems, voting systems, and even everything on the Internet. Having said that, cryptocurrencies still have a long way to go, and most of these areas are still at a very early stage."