EDG won the League of Legends global Finals in the early hours of November 7, triggering a frenzy of esports players in China.
Meanwhile, an unrelated version of the same name, the EDG Coin, showed the world just how crazy virtual currency speculation can be, being bought up 2,699 times.
Less than 12 hours after EDG's victory, EDG coins fell in an avalanche. If you buy from the top, you get 40% harvest in most of the day.
And the same thing happened two months ago.
A gaming platform with the same name has released an exclusive token, SQUID, after the Netflix series went viral.
The platform is modeled after the six rounds of competition in the TV series, with the final winner receiving the prize money in the form of squid coins.
Players must pay a preset price of squid coins to participate in each game. In the final match, players pay 15,000 squid coins and purchase an NFT (non-homogeneous token, which in this case is similar to a game skin or item).
On October 29, the squid coin was officially issued at 1 us cent per coin. In 24 hours, the squid coin soared nearly 2,400 times.
By the time the market opened on Nov. 1, the price had soared to $2,861.8 (18309 yuan).
Then the issuer began to cut the leeks.
In 5 minutes, the price of squid currency plummeted to 0.0007926 DOLLARS, down 99.999976%.
According to BscScan, a blockchain tracking and analysis platform, about 40,000 people still held the coins after the flash crash, and investors lost at least $2.1 million.
As a matter of fact, the issuer of "squid coin" had planned to run away. Its official website was registered less than a month ago and the total use time was even less than three weeks. There are also many grammatical errors in the description of the project;
The founders of Squidcoin have no LinkedIn profile or even identity information.
"Shanzhai coins" itself is not a derogatory term in the currency circle, but in China shanzhai coins are often associated with fraud.
At present, shanzhai coins in the market generally have three characteristics:
First, the main body of issuing institutions is not clear, or the information of institutions and team members is fraudulent, and the trading system is mostly deployed overseas.
Second, lack of clear project schedule, often advocate "high return point, high income";
Third, there is no specific application scenario, but it is good at fabricating the background to create a facade to increase confusion.
The projects in these "shanzhai coins" often do not make too much investment in the technology ecology, but promote hot spots in marketing and public opinion, and finally attract low and sell high, and run away with money.
That some people think that the operation of a long time old virtual currency there is no problem?
Let's take a look at the "radar coin", which has been operating in China for 7 years. On October 19 this year, the official announcement was made that the radar platform was permanently closed.
The price of the currency plummets, the withdrawal channel is closed, the handling fee is high, the daily income is gone, no one manages, millions of leeks live and die, and their faith collapses.
The owner cashed out $2.5 billion and ran away.
Currency circle is like this, everyone knows that he is a cover is a fraud, but before he did not collapse, there are always lucky people to join them, always feel that they will not be the last of the leek.
So I saw him raise high buildings, I saw him entertain guests, I saw his tower fall down.
02
We "keep up with current events" fraud gangs, now often put on the cloak of "currency circle", using the "virtual currency" to cheat windfall profits:
As we all know, Bitcoin emerged early, has strong symbolic significance and the largest market consensus, so it has formed quite a high degree of recognition in the world. And "mining" is one way to get bitcoin.
But "mining" requires considerable computing power and power, so "cloud mining" was born, the typical case "Baimeng Cloud mining".
"Baimeng Cloud Mine" claims to have a number of large standard supercomputer rooms, the total load of electricity up to nearly one million kilowatts, the scale of the mine steadily ranks the world's first-class, users can rest assured on the platform to rent mining machines "mining".
"Mining" income is directly visible in the background, and in the early stage can also be withdrawn, with the user to pay more and more deposit mining machine, these cheats eat and drink enough to close the door and run away.
In addition to virtual currency investment fraud, shenzhen police recently successfully busted a criminal team that used "virtual currency" to help fraud groups launder money and transfer money.
The 9-member team has a clear division of labor:
Jia is a member of the lowest level, only responsible for lending bank cards; Wang mou Xin is responsible for calculating the exchange rate of converted RMB and virtual currency; Shen is responsible for renting bank cards and phone cards; Wang is responsible for accounting, transfer, the organization of bank card operation; Lu is responsible for buying and selling virtual money.
In September, the People's Bank of China and 10 other departments issued a notice on further preventing and disposing of risks caused by speculation in virtual currency transactions. The Notice clearly states that:
Virtual currency-related businesses, such as virtual currency exchange, buying and selling virtual currencies as a central counterparty, matching services for virtual currency transactions, token issuance and financing, and virtual currency derivative transactions, are all illegal financial activities and shall be strictly prohibited and firmly banned in accordance with the law. Overseas virtual currency exchanges providing services to Chinese residents via the Internet are also illegal financial activities.
While the country is further strict supervision, we should enhance risk awareness, especially pay attention to the elderly at home, do not participate in virtual currency trading and speculation activities, be alert to virtual currency fraud, and guard against personal property and rights and interests damage.
No matter what kind of business opportunities and myths "virtual currency" will create overseas in the future, we should not be the leek of the foundation.