Since the digital currency has been fueled, a variety of "coins" have appeared on the Internet. It can be said that there are over 3,000 virtual currencies in the network under the name of "mining." There are over 3000 kinds of incomplete statistics, which are basically downloaded Bitcoin source code, the number of encryption methods, such as slightly modified, can be said to be "cottage Bitcoins."
According to CCTV Finance recently reported that Tencent security fraud official Li Xiyang said:
Recently, the use of the so-called concept of blockchain engage in tokens, virtual currency this one, we found that there are more than two thousand kinds of very active tokens, we found that this MLM platform has more than 3,000, such crimes Because the amount involved is very large, but the harm is very large.
The name of the so-called cloud miner's so-called virtual currency is misappropriating the virtual currency generated by it is not decentralized virtual currency, there is no long-term investment value, once the ore machine's bankruptcy, it will be a text value.
On December 11, 2017, the official website of the State Administration for Industry and Commerce released the article "Beware of New Internet Fraudulently With Pyramid Schemes" to Issue a Risk Warning on New Internet Fraudulent Practices in the Form of MLM as a Means of Virtual Currency.
How to identify "MLM digital currency"?
As early as April 7, 2017, the Internet Finance Association of Jiangsu Province updated the Guideline on Internet MLM Identification (2017 Edition). In particular, it added a section on digital currency pyramid selling. It pointed out that MLMs use the fact that most investors do not understand the status of digital currency and conduct MLM Deception, the formation of "pyramid schemes digital currency."
The guide introduces that digital currencies generally have three characteristics over other MLMs:
real products - digital currency, and is very high level of packaging;
Participants can receive a jackpot reward, which is the digital currency itself;
Digital currencies tend to appreciate as the number of participants increases. During the cycle of digital currency appreciation, the number of digital currencies available to participants also increases. Participants, including the lowest-level participants, also make a profit, but enter the period of devaluation, Often the loss is huge.
The guide notes that Treasure, Baibiao, SMI, MBI, Mk, Diablo, MMM, Fidelity United Fuli, Kela, V Bao, Vika, PetroChina, Hua Qiang, CB AsiaBank Hong Kong, Currency Sheng, Morgan, Betta, WorldCom, U, Jubao, 21st Century Fox, Manpower, Wanfong, Five Elements, Easy, Chinese, etc. are all dressed or suspected to be in digital currency Coat for illegal pyramid schemes projects.
Regulators shot more than ICO on behalf of investors were investigated
In September 2017, the central bank unite with the Central News Agency, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Insurance Regulatory Commission and other relevant departments of the State jointly issued documents. The official nature of ICO is illegal financing, allegedly engaging in illegal financial activities and explicitly prohibits Any tokens issue financing activities.
After being banned, many ICO projects are diverted overseas, but the participants are still domestic citizens. One
On behalf of investors as capital biankei, while taking a share from overseas ICO projects, while selling to the country want to participate in the ICO project, receive two commissions.
The so-called "generation vote" is an intermediary service derived from ICO after its popularity has become increasingly popular. Generation investment generally takes the share of private placement from the hands of the ICO preparation project, and then looks for individuals or organizations interested in participating in private equity investment Fund raising. At present, the ICO's generation investment conference will charge agency fees for projects and investors at the same time, generally between 5% -10%.
Recently regulators once again shot up rectification, there are many on behalf of the polls have been investigated. According to deep chain financial reports, regulators or at the end of ICO for the introduction of new regulatory policies.
Difficult to regulate South Korea or will prohibit encrypted currency transactions
According to South Korean News Agency Yonhap News Agency reported that the South Korean government policy coordination department issued a statement:
The Minister of Justice recently mentioned the need to close the cryptocurrency exchange, a proposed curb speculation by the Department of Justice. After full consultation and coordination, government departments will make a comprehensive decision in the future.
The South Korean government appears to be determined to ban cryptocurrencies, but South Korea's finance minister said more consultations on the issue are needed, according to CNBC (Global Press, CNNIC). The ban will not be implemented until all opinions and further consultations are reached.
At present, the total market capitalization of the cryptocurrency market is about 700 billion U.S. dollars, and the global GDP is worth about 70 trillion U.S. dollars. Compared with the encrypted market, it seems insignificant. The real reason why governments and financial institutions want to prohibit cryptocurrencies is the fear of lack of regulation and centralized management.
In addition, cryptocurrencies such as Bitcoin and Ethereum in South Korea are far more expensive than the rest of the world. CoinMarketCap recently been criticized by public opinion ignored the South Korean market in the sum of bitcoin and Ethereum prices. CoinMarketCap explained the move to keep investors from misleading as investors avoided sharp swings in prices.