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Beijing Business Daily: How crazy is the bloody currency contract?



"Playing is heartbeat!" This is the mantra of many contract players in the currency circle. At 12:00 noon on May 17, Bitcoin plunged again, falling nearly 13% within the day, falling back to $42,282. However, while the market in the currency circle is going down, many altcoins have become popular, especially in the contract market. Recently, a reporter from Beijing Business Daily found that contract trading has become popular in the currency circle, and many currency people no longer pay attention to the long-term rise and fall of Bitcoin, but play the game of "gambling long and short" with dozens or even hundreds of times of leverage . At present, the contract trading volume of many currencies is far greater than that of spot trading. However, it should be noted that, from the perspective of the industry, hundreds of times the contract is like a bloody gambling business, and there is a risk of liquidation if the leverage is used carelessly. Invest in mind. On May 17th, Li Xin (pseudonym) only slept for 3 hours that day. Although he was sleepy, he still opened his eyes vigorously and opened the contract transaction on the OKEx platform for the first time. All of a sudden, he sank to the bottom of the valley: "It's over, I was liquidated!" Li Xin is a young man who has just graduated three years ago, and is also a speculator who has just entered the currency circle. Li Xin told a reporter from Beijing Business Daily that he had always sneered at virtual currency before, but recently he found that more and more friends around him joined the team of speculating in coins. up. Especially recently, Dogecoin, Shitcoin and other currencies have been popular out of the circle. Li Xin took advantage of the market boom and joined the team of currency speculation. With the help of his friends, he began to learn how to recharge, buy coins and even contract transactions. Beijing Chaoyang District Finance Office and State-owned Assets Supervision and Administration Commission supervise and guide the establishment of Beijing Central Business District Xinlian Technology Co., Ltd.: Recently, under the supervision and guidance of Beijing Chaoyang District Finance Office and the State-owned Assets Supervision and Administration Commission, CBD International Group specifically implemented the establishment of the Beijing Central Business District Xinlian Technology Co., Ltd. Technology Co., Ltd. was established. The prepaid supervision technology system built by the company integrates Chaoyang's "Early Warning" detection system, the "Building Assistant" applet, and the "Prepaid Supervision Platform". Among them, the latest "Prepaid Supervision Platform" , Supervision services can be provided through consumption scenarios such as settlement of consumption progress, settlement of consumption times, freezing and unfreezing of funds. (Jintai Information) [2021/7/29 1:23:25] "I can't understand many operating terms, and I don't know how to pronounce many currencies. After studying it over and over again for an afternoon, I barely learned the operation process." Li Xin told a reporter from Beijing Business Daily that he tentatively bought a small amount of Ethereum when he bought coins for the first time, but unfortunately he lost more than 10% in the past 7 days after buying. So, after seeing "Can you make a profit even when Bitcoin falls? Teach you how to trade contracts" in the novice tutorial on the OKEx official website, Li Xin began to further try contract transactions. If the Ethereum spot that Li Xin came into contact with at the beginning was a speculative transaction that skyrocketed and plummeted, then the ultra-high leverage contract he entered later, it can be said that the entire transaction has almost become a crazy gambling game. Li Xin told a reporter from Beijing Business Daily that on the evening of May 16, when he saw Shicoin showing a downward trend, he tried to operate the Shicoin perpetual contract on the OKEx platform through market entrustment, with a leverage of 20 times and chose to "sell". Go out and open up." To his surprise, in just ten seconds, he realized a gain of 14.67%. Voice | Beijing Business Daily: Some analysts believe that the new version of the 5 yuan banknote may use blockchain and other technologies for banknote anti-counterfeiting and flow location tracking: According to Beijing Business Daily, on April 29, the central bank’s official website announced that in August this year The fifth set of RMB 50, 20, 10, and 1 yuan banknotes and 1 yuan, 50 jiao, and 1 jiao coins of the 2019 edition will be issued from the 30th. After the above currencies are issued, they will be circulated at the same value as the same denomination of RMB. It is worth mentioning that due to being selected for the application of related new technologies, the 5 yuan note is temporarily absent. Some analysts believe that the new version of 5 yuan banknotes may use blockchain and other technologies for banknote anti-counterfeiting and flow location tracking, similar to an attempt at digital currency. [2019/4/30] Li Xin, who had just tasted the sweetness, soon started the second contract transaction. He still chose the "short opening" operation of shitcoin, but the leverage was increased to 50 times. "My opening price was 0.00001615. After the leverage was increased to 50 times, the price once rose above 0.0000162, but my forced liquidation price was only 0.00001628. It fluctuated by several points every second, which was too thrilling." Li Xin said that he stared intently at the rise and fall of the shitcoin price, and every beat was very nerve-wracking. After losing nearly 15% at one point, the price of shitcoin finally ushered in a drop, and finally realized a 27.86% yield in ten minutes . "There are only 0 times and countless times of speculating in contracts. Although I know it's 'licking blood with the tip of a knife', I can't stop after tasting a little bit of sweetness. I just bet on the 50% chance of winning." Li Xin told Beijing Business Daily Reporter, after operating leveraged contract transactions to earn a certain amount of income, he began to increase the operating amount step by step, and also increased the leverage ratio step by step. Until the early morning of May 17, he was operating "long" contracts through limit orders. Time wasted. "It was predicted that after the sharp drop, it would rise back, but I didn't expect it to fall all the way, and in the end it was directly liquidated and liquidated." Dynamic | , After investigation, it was found that "second-hand" bitcoin mining machines were sold off. At the same time, some illegal MLM investment scams using the concept of mining machines have emerged in an endless stream. In the eyes of analysts, some mining machine manufacturers use a similar pyramid scheme to sell mining machines, and the mining machines taken over by investors are difficult to generate actual mining income, and eventually evolve into a relay game, with the risk of the overall model collapsing. [2019/4/24] From 14.67% to 27.86% and even to 50%, Li Xin, who tried to make a big fortune in the highly leveraged contract market, only experienced a few hours of "wealth appreciation" before falling asleep After waking up, all virtual currency assets are "returned to zero". In fact, liquidation is not uncommon for contract players, and Li Xin is just one of thousands of liquidators. According to the contract data, as of 11 a.m. on May 16, 106,000 RMB had been liquidated in the past 24 hours, and the amount of liquidation reached 4.5 billion yuan. With the sharp rise and fall of currency prices, liquidation incidents continued or even intensified. As of 7:00 on May 17, more than 138,000 people were liquidated in the past 24 hours, and as much as 7.6 billion RMB funds were wiped out. The so-called contract trading is actually a mode of forward trading of trading products. Investors can obtain the income generated by the rise and fall of the "underlying" price by buying long or selling short contract transactions. For example, when you are bullish on Bitcoin and go long, the price rise will bring profits, and the fall will bring losses; on the contrary, when you are bearish and short Bitcoin, the price rise will bring losses, and the fall will bring profits. Therefore, many exchanges have promoted words such as "there is an opportunity to earn income when the currency price falls, and you can earn income from the rise and fall through contract transactions" to attract novices in the currency circle to enter the market, and even set up hundreds of times of leverage to help users use small broad. News | Beijing Business Daily: "GEC Environmental Protection Coin" head-pulling model is suspected of pyramid schemes: According to Beijing Business Daily, a reporter from Beijing Business Daily noticed that a new type of "GEC Environmental Protection Coin" transaction model has been widely spread. Protection", "Zero Investment", "Zero Risk", and "High Yield" are the labels, relying on attracting people to join the business and pulling down the offline development capital chain. Industry experts pointed out that environmental protection coins can basically be classified as coils. The appearance of the coil is a virtual currency, and the core is a fund disk. The income of the predecessors comes from the funds of the latecomers. This model is not only suspected of ICO in disguise, but also involved in pyramid schemes. [2019/4/10] It is worth noting that although the supervision has repeatedly emphasized the prohibition, exchanges including OKEx and Binance have launched contract products, and they are still open to domestic users. On May 17, a reporter from Beijing Business Daily conducted a number of personal tests on the aforementioned exchange contract products. After a series of operations such as registration and identity authentication, they can successfully place orders for transactions and operate contracts with leverage. A reporter from Beijing Business Daily further investigated and found that OKEx provides two types of contract products: delivery contract and perpetual contract according to whether there is an expiry date or not. The leverage of perpetual contract is as high as 125 times; Ways, including U-standard contracts, currency-standard contracts, Binance leveraged tokens, Binance options and other products, the leverage is also as high as 125 times. In addition, it also introduces mixed margin, rankings, contract battles, etc. in terms of functions to encourage users Participate in contract transactions. Beijing Business Daily: Blockchain out of control: Blockchain, a technology written into the 13th Five-Year Plan, also exists as the underlying technology of Bitcoin. However, recently, with the hype of retail investors and companies on the blockchain, the definition of the blockchain has been misinterpreted. Getting rich overnight with big bets has become synonymous with "coin speculation". Today, the daily turnover of the blockchain-derived token trading market exceeds 300 billion yuan, which has jumped to the mainstream financial market. The accumulation of bubbles has made the blockchain go out of control, which inevitably makes people worry about how the blockchain technology can develop benignly instead of collapsing amidst speculation and hype. [2018/1/17] Lin Da (pseudonym), a person in the currency circle, told the reporter of Beijing Business Daily that the currency circle exchange has been promoting leveraged contract trading for many years. As early as 2019, Binance had launched a double-contract competition Contest, launching activities such as transaction fee discounts and simulated trading contests. OKEx is no exception. It has launched activities such as the contract elite team competition, which claims to provide a $10,000 bonus for the winners and encourage users to participate in contract transactions. In fact, at present, the contract trading volume of many currencies is far greater than that of spot trading. On May 17, according to Feixiaohao data, the 24-hour trading volume of BTC/USDT spot trading on the OKEx platform was 6.3 billion yuan; however, the 24-hour trading volume of its contract trading area during the same period was as high as 17.5 billion yuan. Why do exchanges promote contract trading? In the opinion of a senior analyst, contract trading with hundreds of times is a blood-thirsty gambling business. If leverage is used carelessly, even a "veteran on the battlefield" will inevitably encounter a liquidation situation. Behind this huge loss , It is the trading platform that makes a lot of money. "There is no 100% certainty in investment. If you choose a transaction and open a hundred times leverage, it means that only 1% fluctuation may lose 100%, and the margin will be forced to liquidate." Shanghai University of International Business and Economics Liu Feng, director of the Blockchain Technology and Application Research Center of the School of Artificial Intelligence Transformation and Management, also told the reporter of Beijing Business Daily that unless there are special events, the exchange is doing business that is sure to make a profit. A reporter from the Beijing Business Daily noticed that in addition to earning income from the liquidation event, the current contract transaction rate of the exchange is not low. Among them, in the contract trading area of OKEx, for Bitcoin, Ethereum and other trading currencies, according to the level of membership, the transaction fee for pending orders on the platform ranges from 0.015% to 0.02%, and the transaction fee for taker orders is The handling fee ranges from 0.03% to 0.05%. This means that in a transaction, the exchange can obtain service fee income from buyers and sellers, especially for novice users, the total fee rate can reach up to 0.07%. Aiming at issues such as high fees and high leverage, a reporter from Beijing Business Daily interviewed OKEx and Binance Exchange. Among them, OKEx staff responded that the launch of leveraged contract trading by OKEx is mainly based on market demand, which is mainly divided into long-term and short-term. Two types, the person admitted frankly that the contract transactions of a series of virtual currencies including Bitcoin will indeed fluctuate greatly with the price, and the liquidation rate will be very high. The aforementioned staff also added, "However, since the launch of OKEx contract products, user education has been carried out. If you want to use contract products, you must pass a series of risk control tests before you can proceed. In addition, we will also Regularly publish user education and user training articles, recommend non-professional users not to adopt contract transactions, and remind users to control corresponding positions and leverage." In addition, as of press time, the Binance platform has not responded to related questions. The sharp rise and fall of prices has exacerbated the risk of virtual currency speculation, and the contract transactions with leverage as high as hundreds of times are even more dangerous. The Beijing Business Daily reporter noticed that as early as 2020, including the central bank, etc., issued a document warning the risks of virtual currency trading platforms, and pointed out that the common routine of virtual currency trading platforms is to first defraud customers into the market through false transactions, and then manipulate market prices and Malicious downtime forces customers to liquidate their positions. In addition, multiple departments have repeatedly reminded investors that such activities use "financial innovation" as a gimmick, but are essentially financial investment frauds of "borrowing new ones to return old ones", and the operation of funds is difficult to maintain for a long time. Investors should establish a correct investment philosophy and earnestly raise their risk awareness. A financial regulator also told a reporter from Beijing Business Daily that supervision has been showing a trend of cracking down on money laundering and high leverage issues in virtual currency exchanges, including setting up servers overseas and providing virtual token transactions to domestic residents. Rectification will be further strengthened. "The price of the cryptocurrency market itself fluctuates violently, and the market risk is already greater than that of the traditional capital market, and the leveraged contract transaction further amplifies this risk." Researcher Jiang Zhaosheng said bluntly, among them, there are market risks brought about by issues such as violent fluctuations in underlying prices and opaque information disclosure, and there may also be unsystematic risks brought about by market makers. These risks are to a large extent for ordinary investors. are uncontrollable and unpredictable. In Jiang Zhaosheng's view, the risks of leveraged contract trading are largely unavoidable, and only by not participating can we not be affected. Ordinary investors should be aware that the trading threshold of derivatives such as contracts is already high, coupled with the unpredictability of the underlying cryptocurrency, the risk will be further magnified. In the absence of sufficient trading experience and risk tolerance, try not to participate in contract leveraged trading, and keep a clear and rational investment mind. Liu Feng said that it is necessary to manage from the source to prevent the chaos of trading in the currency circle. On the one hand, it is necessary to provide sufficient risk warnings to market participants to help them make maximum risk identification and investment decisions, especially not to participate in high-risk leveraged contract transactions; Supervision, regular reporting, normalization of supervision, so as to achieve precise governance.


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