New gameplay of digital currency: digital currency pledge dancing on the wire

Since the beginning of this year, the blockchain has stirred the nerves of financial people, and it seems that the knowledge points of the blockchain in the circle of friends are out of date. A reporter from the New Express News found that a new gameplay, digital currency pledge, has gradually become popular recently.

This model is similar to pledged loans. In the past, the pledges were only cars, houses, goods, etc., but now they have been replaced by virtual currencies.

At present, many entrepreneurs who are preparing to enter this field are "sharpening their knives", believing that the currency circle finance will be the next frontier, but supervision is still the biggest "variable" in this field.

Some people in the industry admit that there is no clear regulatory policy for digital currency itself, and digital currency pledges are wandering in a regulatory vacuum. Even digital asset pledges should have lending-related qualifications.

"The industry has been halted, but the market has not stopped"

"Accepts large amounts of BTC and ETH pledges, the cost is beautiful, and you can solve your liquidity problems in the downward stage. Welcome all exchanges to cooperate." The former P2P platform founder in the circle of friends of the New Express reporter has already started the business of digital currency pledge .

On the one hand, there are many startups or cash loan companies that can bypass the regulatory red line of 36% annual interest rate by means of digital currency, and on the other hand, there are also startups who are passionately looking at it as a new entrepreneurial direction.

"The industry has been halted, but the market has not stopped." An industry personage who has transformed from cash loans to digital currency collateral told a reporter from the New Express News.

He explained that digital currency pledge is just a process in which users do not want to sell their coins, so they pledge their virtual currencies (for example, a pledge rate of 50%) to obtain cash.

According to a reporter from the New Express News, there are currently more than 20 startups engaged in digital currency pledges in the market, but in fact not many of them are doing business, and the method of operation is to mortgage the digital currency, and then according to the 50% to 70% of the currency price. % To lend money.

Since the beginning of this year, including digital currency exchanges, traditional securities market players and some mutual fund entrepreneurs, many of which are cash loan companies, etc., have entered the field one after another.

“This market currently only recognizes two major currencies, Bitcoin and Ethereum. This business currently earns interest.” Zhang Le, an “old man” in the currency circle, said that many speculators currently have “blockchain beliefs”. , They hold the currency and do not operate short-term.

"This is just a matter of demand. When the currency price is low, people who speculators are definitely not willing to sell coins. Once they are short of money, they must find such a platform. The demand has formed this market."

However, due to unstable market conditions, the price of the digital currency pledged by the borrower will fluctuate. In order to avoid loss of the loan amount and interest, the lending platform will mark-to-market and risk monitoring of the pledged digital assets. If the price drops to the pre-warning line, the platform will remind the borrower to stop or cover the position in the middle. For example, the borrower pledges 100 yuan worth of digital currency, and can obtain 50 yuan loan from the platform. When the 100 yuan pledged by the borrower drops to 70 yuan, the platform will take early warning measures; if it drops to 60 yuan, the platform will force liquidation.

Coin speculation can also "equipment"

However, many speculators are not satisfied with this, and continue to increase leverage to borrow coins to speculate coins. The whole game process is full of gambling. "What you play is a heartbeat!" Some speculators told the reporter of the New Express News.

According to a reporter from the New Express News, the main operating entity of this type of leveraged game is generally a digital currency exchange, and borrowers can make leveraged investments to earn the difference between the fluctuations of different currencies.

Take Huobi Pro's leveraged trading BTC/USDT trading pair as an example. It currently supports a maximum leverage of 3 times. When a borrower “goes long”, he has a principal of 10,000 USDT and can borrow up to 20,000 USDT from the platform, that is Use 30,000 USDT to buy at a low price and sell at a high price to earn the difference; when “short”, the borrower has a principal of 10,000 USDT (0.5 BTC), and can also borrow 1 BTC from the platform and sell it at a high price. Buy at a low price to get the difference.

At present, the exchanges charge the borrower a daily interest ranging from two ten thousandths to one thousandth, and the leverage provided ranges from 1 to 100 times. The higher the leverage selected, the greater the risk of the borrower. . For example, if the leverage is 10, when the decline exceeds 10%, the account will be directly liquidated; if the leverage is 100 and the decline exceeds 1%, all losses will be lost.

The digital currency world experiences big ups and downs almost every day, which also means that many players lose their money in the process of "borrowing coins to speculate".

"It's like dancing on a steel wire." Some insiders said.

In fact, there have been many risk incidents in this field.

At the beginning of this year, OKEx had experienced extreme trading behaviors for nearly 1.5 hours. The quarterly BTC contract price plummeted, with the lowest point approaching $4,000, and many investors were instantly liquidated. In fact, the price of BTC in the entire market has not fallen below $6,000.

At the end of last year, the digital token Wax project party launched the Bitcoin exchange Huobi Pro without notifying users, and suddenly modified the address rules without notifying users and the platform, and will issue 185 million Wax tokens in the initial period. The currency was changed to 1.85 billion, and the issuance rate reached 10 times.

Wax plummeted continuously that day. Within two hours of its issuance, Wax fell from a high of about 10,000 yuan to 32 yuan, a drop of more than 99.9%, and once fell to about 5 yuan, causing a lot of losses to users.

analysis

Currently still in a regulatory gap

Yuan Tao, the founder of UnicornCredit, told Xinkuaibao reporters that digital currency pledge is the first step to enter the currency circle of finance. Later, in the currency circle, there will definitely be more complete and reasonable financial methods, including pledges, loans and even insurance.

However, there are also views that this is a game of lofts in the sky, and it is doing some gray business that evades supervision and survives between cracks. As for the market prospects, there is no way to talk about it. However, it is undeniable that regulation has not yet issued a policy in this area, and it is still in a regulatory gap.

"If the company and server are placed abroad, even if supervision comes, they can be withdrawn at any time." A practitioner who has transformed from a cash loan to a digital currency pledge platform said bluntly. For this group of entrepreneurs, supervision is still the biggest "variable" in the digital currency field.

However, many experts and scholars have pointed out the model risk of digital currency pledge.

Hu Jie, a professor of practice at the Shanghai Advanced Institute of Finance, pointed out, “Currently, most digital currency mortgage lending business only occurs in the currency circle. One party has funds (or digital currency) seeking to lend, and the other party lacks funds (or digital currency) and needs to borrow. Digital assets can be used for mortgages, and this kind of private transactions can be allowed. However, if an entity specializes in this business and engages in this type of lending and financial management, it needs to have the corresponding qualifications and conditions, otherwise it may be suspected of illegal lending or illegal operations ."

"This is a gray game. The essence is to solve the liquidity of assets or directly raise funds. However, even in the gray industry, it must not take the method of manipulating the market. This will only bring about fraud in the future of Article 266 of the Criminal Law. The risk of crime." Xiao Sa, a well-known Internet finance lawyer, said that from a legal point of view, the digital currency wealth management business is completely outside of supervision and has no legality. In addition, she said that most of the business is satisfied with currency holdings. The demand for speculation in coins has not served the real economy.

High Frequency Inverter Charger

High Frequency Inverter Charger,High Frequency Inverter Transformers,Inverter Charger,High Frequency Car Power Charger

SUZHOU DEVELPOWER ENERGY EQUIPMENT CO.,LTD , https://www.fisoph-power.com