Bitcoin reduction

1. Did the DMG team run? The price of DMG currency has been falling. After the agreement announced the immediate cessation of operation, the management token of DMG's defi money market has fallen by 90%. Unfortunately for the supporters of the defi money market foundation, the value of the DMM token plummeted as the team behind it revealed that they had stopped all operations e to regulatory considerations< br />
< First, DMM stopped operation

the defi money market used to be a loan platform, causing some serious concerns in the cryptocurrency community. One of the reasons – this is a popular defi project, supported by some celebrities, including drapper gorenholm – Tim Draper, the partnership between alon Goren and Josef Holm, committed to investing in blockchain solutions

unfortunately, supporters of the project received bad news today as the team behind DMM announced that it would stop operations immediately

e to the inquiry from the regulatory authorities, DMM is being closed. With immediate effect, mtoken casting is no longer available. Although the interest rate of mtoken will be reced to 0% around February 10, 2021, the redemption of mtoken will be provided indefinitely. At present, there is capital and interest available to redeem all outstanding mtoken and accrued interest. – Read the official website

however, e to many changes in the price of protocol management token DMG, many communities have lost great value, which shocked the community< Second, the price of DMG is 90%

the management token of DMM, and the price of DMG has plummeted by 90% in less than 60 minutes. It rose from more than $0.50 to about $0.05. The market is still open, so it has recovered slightly, but it is obviously not good for those who fail to dispose of the token in time

FTX, one of the exchanges where DMG uses leverage to trade, also provides some enlightenment for the event. Sadness depends on what happened with DMG today. We will keep the DMG market open and allow people to trade according to their needs. Leverage is likely to dominate a lot of the time. We don't know what evil has happened, but we will investigate in the abnormal price mode.

2. Li Xiaolai has invested in bitcoin and bitstocks

Li Xiaolai is recognized as a big pit in the instry. Some people compare him to the godfather of bitcoin in China. In fact, he is hyped by the media. He claims to own 6-digit bitcoin, but he has never disclosed his wallet address, and there is no place to check it

several projects he invested in and developed all ended in failure, such as bitcoin fund, cloud currency exchange, bitcoin bank and so on. Investment in roasted cat stock, on the one hand, is optimistic, on the other hand, it is secretly sold, leading to a large number of losses. Under his own personal influence, he took a stake in bitstocks and vigorously publicized in China, but he was secretly recing his holdings. Bitstocks also pit a large number of people in China.

3. It doesn't matter at all. You can see it in Babbitt. V-coin is a fraud in which a domestic MLM team packages foreign procts and then concts MLM by pulling people's heads down. It is just a clone of bitcoin technology. More and more people reflect that they can't withdraw cash when they buy VPAL, so please be careful of the risk!!!

4. Bitcoin is a kind of virtual currency generated by computer algorithm, the total amount of which remains unchanged. It has no value in itself. Its value is given by human. To tell a story,
the merchant went into the mountain to buy a monkey for 100 yuan. The villagers made money by selling some of them. When the merchant raised the price to 200 yuan, the whole village went to catch the monkey, and the merchant collected it all. The monkey is hard to catch. The merchant raised the price to 500, and there is no monkey. After that, the assistant of the businessman sneaks back to the village and sells a monkey for 300 yuan, and the villagers rush to buy it. Then they wait for the businessman to come, and the businessman never comes again...
similarly, in the period of rapid rise in the price of bitcoin, the one who holds more bitcoin will be richer, so people rush to hold bitcoin, making the price of bitcoin rise faster, It forms a positive feedback regulation. Now that the price of bitcoin has fluctuated near the peak, the economic impact of increasing or recing your holdings is unknown. In the future, when prices fall sharply, those who hold more bitcoin will lose more, and those who hold less bitcoin will make more profits
in addition, how bitcoin came into being can be seen in this way. A programmer wrote a high-order equation with a computer. There are 21 million solutions. The solution itself has no value. Suddenly, someone said that he was willing to pay 100 yuan for a solution, so everyone began to work hard to solve it. At this time, the price of a solution is 100 yuan. The solution began to flow from one hand to another. Slowly, under the market regulation and artificial reasons, the price of solution becomes 102 yuan, 247 yuan, 97 yuan, 411 yuan...... wait. Bitcoin plays well. If you can have a drink with financial groups, if you don't play well, you are just a piece of meat in someone's mouth. Ordinary people still don't recommend buying bitcoin

5.

ETF is trading open-end index fund, also known as exchange traded fund. It is an open-end fund that is listed on the exchange and has variable fund shares

according to different investment methods, ETFs can be divided into index funds and actively managed funds, and the vast majority of foreign ETFs are index funds. At present, the ETF launched in China is also an index fund

ETF index fund represents the ownership of a basket of stocks, which refers to the index fund traded in the stock exchange like stocks, and its trading price and net value of fund shares are basically consistent with the index tracked

therefore, an investor trading an ETF is equivalent to trading the index it tracks, and can obtain basically the same return as the index. It usually adopts the completely passive management method, aiming at fitting a certain index, which has the characteristics of stock and index fund

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< H2 > extended information:

market impact

1. It increases the market attraction of the exchange. The launch of ETF enriches the trading varieties of the market, improves the variety layout, helps the market attract more powerful large cap blue chip companies to join, and helps to guide the diversion of savings funds to the securities market, It is helpful to the further development of market proct innovation

As an index proct, ETF trading also provides investors with the opportunity to invest in a specific sector, a specific index, a specific instry or even a specific region stock. Those indexes targeting a specific sector, in addition to continuing to play the role of price disclosure, can be used as investment tools for investors

Moreover, this kind of ETF without cash management can greatly improve the use efficiency of fund assets, avoid the transaction cost and tax burden caused by the constant adjustment of portfolio to cope with recurrent redemption, and help to protect the long-term interests of fund investors

6. I think the reason for gold's slump is the deterioration of the global economic situation. Because the economy has gone bad, the issuance of US dollars has to be relatively reced, so the appreciation of gold is necessary. This also shows that the US economy is the most stable, and the government is unlikely to issue additional currencies to hurt the economy. Although gold has risen for more than 10 years, it still can't match the rising level of prices. Generally speaking, gold is the currency with the lowest risk, so the return on investment in gold is also the lowest.

7. After June 12, 2015, a shares experienced three rounds of sharp decline. In the first round, from June 15 to July 8, a shares plummeted by 31%; In the second round, from July 24 to August 3, a shares fell 11%; In the third round, from August 17 to August 26, a shares fell 26.7%. Why? My conclusion is that the three rounds of plummeting is the result of three bombs detonated in the stock market
one of the bombs of the stock market crash: large investors cash out and retail investors take orders
let's review the three stages of this round of stock market rise
in the first stage, from July 11 to December 31, 2014, a series of favorable reforms were introced, which led to the continuous rise of the stock market. The Shanghai stock index rose by 58.23%, which was called "reform bull" by the media. During this period, small and medium-sized investors invested 1.33 trillion yuan into the stock market
in the second stage, from January 1 to March 8, 2015, e to the Spring Festival, the government's year-end summary, preparations for the two sessions and other reasons, no new reform measures were introced, and the stock market was stable and volatile. In the past two months, the market is basically in the stage of digesting the concept of early reform. Small and medium-sized shareholders have bought 510 billion yuan net, and new funds are constantly entering
in the third stage, after the two sessions held in March 2015, the good news of reform was constantly introced, and the stock market began to rise again. From March 9 to April 27, 2015, in more than two months, small and medium-sized shareholders bought 1.62 trillion yuan, which was twice as much as the previous two months. The market bubble began to take shape at this time. On April 16, 2015, Shanghai 50 and China 500 stock index futures were officially launched. In particular, the CSI 500 has become an excellent arbitrage tool, because its target is small and medium cap stocks. In the past, the CSI 300 could not accurately indicate the price trend of small and medium-sized stocks. The stock index often fell by 5%, but the small cap stocks had two limits, which could not play the role of arbitrage
in the following may and June, the stock market fluctuated and fell, and the government media began to protect the market. This was a mistake we made. If there is no official media to protect the stock market, perhaps the stock market can enter a stable period, and like the second stage, slowly digest the past concept of reform, the stock index can maintain at around 4500, a little bubble is normal. However, after the market protection this time, a large number of leveraged funds entered the market in May and June, and there were all kinds of empty hands, which led to a large-scale decline later. From May 1 to July 8, the Securities Regulatory Commission issued a ban, with a total of 3.2 trillion yuan, forcing the government to rescue the market. The executives of listed companies cashed out 36.65 billion yuan in May and 33.64 billion yuan in June, which is equivalent to the total amount of cash in the first four months of 2015< On July 8, the CSRC required that the controlling shareholders, shareholders holding more than 5% of shares, directors, supervisors and senior managers of listed companies should not rece their shares through the secondary market within six months from now. In case of violation of the above provisions to rece the shares of the company, the CSRC will give serious treatment, and SASAC requires central enterprises not to rece their shares. After the stock price returned to stable on July 9, large investors no longer continued to sell one-way, but bought and sold
on July 24, the second round of stock price plummeted. The big shareholders began to cash out crazily again, and the bomb exploded again. On July 27, net sales reached 181.3 billion yuan. The Shanghai Composite Index fell 8.48%, the biggest drop in eight years
on July 28, the CSRC stepped in again and announced that it had organized inspection and law enforcement forces, focusing on the centralized selling of stocks and other relevant clues on July 27. China Railway Erju (600528), jinlitai (300225), Nanfeng (300004) and other listed companies announced that the illegal rection of major shareholders was investigated by the CSRC. On August 3, the Shanghai Securities Journal reported that 34 accounts in the two cities have been banned from trading because they are suspected of manipulating the market. First, a restricted account first reported 16000
sales on July 8, with an amount of about 1.5 billion yuan. The market panic, prices fell, but then the account began to cancel, cancellation rate of 99.18%. Second, several accounts in a day to focus on pulling or suppressing a stock, and then take the opportunity to buy or sell. After the SFC intervened in the investigation, the large investors' cash out fell back and the stock price recovered to be stable< On August 14, the China Securities Regulatory Commission (CSRC) announced that in the next few years, China Securities Finance Co., Ltd. will not withdraw from the market, and its function of stabilizing the market will remain unchanged, but it generally does not operate in the market. When the market fluctuates violently and abnormally, which may cause systemic risks, it will continue to play a role of maintaining stability in various forms. This statement of the CSRC was fully interpreted by the market as that the phased task of the government's rescue of the market has been completed, and the rescue funds will not be released at around 4000 points
the policy statement triggered a new round of large investors' cash out. On August 18, a shares fell in the third round. On August 17, the Shanghai stock index closed at 3993 points, close to 4000 points, and large households began to cash out. On August 18, large households net sold 171.4 billion yuan, and a shares plummeted by 6.15%. In the next few days, large businesses continued to sell in one direction, with a total of 541.2 billion yuan sold from August 18 to 26. On the 27th, the amount of large cash out fell to 2.7 billion yuan, with the Shanghai stock index up 5.34%; On the 28th, large investors bought 22.7 billion yuan, with the Shanghai stock index up 4.82%
the second bomb of the stock market crash: highly leveraged capital allocation
highly leveraged capital allocation mainly appeared after April 2015. Why? Because if we do not use leverage, the private sector will not have so much money. In order to cash out as soon as possible, the introction of leverage will be more convenient for retail investors to take over. See figure 16-4
there are three forms of capital allocation. The first is the official margin trading. This is the financing balance through formal channels such as securities dealers under the supervision of the CSRC, and the leverage is twice. That is to say, if you have 100 yuan, the securities company can lend you 200 yuan at most, with a total of 300 yuan available. The threshold is very high. Only those who have more than 500000 yuan are eligible to come in. Small retail investors can't come in. This kind of official margin trading began to increase significantly in March 2015, and reached its peak in May and June, with a capital allocation of 2.07 trillion yuan and 2.04 trillion yuan respectively
the second way is for retail investors to allocate funds online and off-site through the Homs mode. With an average leverage of three times, it can also ensure the safety of principal. The amount of allocation also reaches its peak in April, may and June. Homs mode directly breaks through the control of China Securities Regulatory Commission and establishes a complete set of securities trading system. The top-level state-owned securities company is just an interface. The sub warehouse unit can open, trade and clear secondary sub accounts under the same securities account. That is to say, anyone can become a private securities company by opening a sub account, and the opening of a trading authority only requires a simple operation of the allocation company in the Homs system, and his transactions will be covered up in the transactions of other people under the same account without any records
on the evening of June 29, Zhang Xiaojun, spokesman of China Securities Regulatory Commission, said in response to a reporter's question that from the preliminary investigation of OTC capital allocation, the customer asset scale of securities companies connected through the Homs system is about 440 billion yuan, plus mingchuang software's 36 billion yuan and tonghuashun's (300033) 6 billion yuan, the total capital allocation scale is close to 500 billion yuan. The average leverage ratio is about 3 times, that is to say, 1.5 trillion yuan of leveraged capital flows into the stock market outside the supervision of the CSRC
the third one is off-site private funding, which is more difficult to estimate. There are about 10000 capital allocation companies in China, with a capital scale of about 1 trillion to 1.5 trillion yuan. They do not through the Homs system, but directly lend money to shareholders to open accounts, monitoring accounts to ensure the safety of funds
as of June 2015, the scale of on-site and off-site capital allocation reached the peak of 4.8 trillion yuan, and the stock price was also pushed to the highest point. The result of a large number of leveraged funds into the market is that once there is a decline, there will be a spectacular scene of thousands of shares falling together. At noon on June 13, the Securities Regulatory Commission issued a message, requiring securities companies to conct self-examination on external access and clean up off-site capital allocation. After being informed, the allocation began to withdraw, and a large number of stocks were sold. The stocks with concentrated allocation chips first fell to the limit. Once the closing point is reached, the stocks that fall to the limit can not be sold, and those that have not yet fallen to the limit must be sold. As a result, a large area of falling to the limit will be triggered. On June 18, the Shanghai index fell 3.67%, and nearly 2000 stocks in the two markets fell; On June 26, the Shanghai stock index fell 7.4%, and 2000 stocks in the two markets fell by the limit; On July 7, 1700 stocks fell by the limit, accounting for 88% of the total stocks traded on that day
and then in the second round of stock price decline on July 24, the allocation of funds fled again on a large scale, dragging down the stock market. The balance of margin trading decreased from 1.5 trillion yuan on July 24 to 1.3 trillion yuan on August 3. After the stock price returned to stable, the balance of margin trading rose to 1.4 trillion yuan. In the third round of stock price decline on August 18, the balance of margin trading decreased again from 1.4 trillion yuan to 1.2 trillion yuan on August 26
three, three of the stock market crash: shorting system aggravates market panic
when the stock market bubble began to take shape in April 2015, shorting tools were also born. On April 16, 2015, Shanghai 50 and China 500 stock index futures were officially launched. As can be seen from figure 16-6, when the stock market and leverage were at high levels in May and June, the holding and selling volume of CSI 500 stock index futures also reached two peaks< Internet plus Internet plus Internet plus Internet plus crowd financing
but the problem now is that on July 1, because the stocks on the small and medium-sized board and the growth enterprise board have no limit to fall, the spot can not be sold, so we have to hedge the spot position through the short order of stock index futures, resulting in a substantial discount on the contract led by the CSI 500 stock index futures. Ic1507 contract closed at 7509 points, 902.51 points discount over the spot CSI 500 index, with a discount range of 12%. That is to say, only when these stocks are sold at a discount of 8.8% of today's market price will people come to take orders. Since CSI 500 can accurately reflect the trend of most stocks, we can only issue more blank orders of CSI 500 to hedge. A large number of blank orders aggravate the panic of the stock market, thus forming a vicious circle
we can see that the three bombs have contributed to the three rounds of decline of the stock market, and the first bomb is the main culprit of the stock market downturn. Due to the large shareholder's large amount of cash rection at a high level and the lack of funds for retail investors, a large number of highly leveraged funds are generated in the market. After the bubble is blowing, the stock price will fall sharply. What should we do? Short futures to make another profit or hedge down. And a large number of empty orders exacerbated the panic of the stock market, capital flight, forming a vicious circle. Therefore, only by curbing insider trading and restricting large investors' cash out can market expectations be stabilized and stock indexes graally return to value investment. This requires not only one or two policies, but also an effective regulatory system, which is the weakest part of our current securities market.