Is digital currency trading platform a fraud

1.

Basic routine: the "trading market" of MLM digital currency is basically controlled by specific institutions. In order to attract investors' investment in the early stage, the currency price may be very high. Once the time is ripe, it will be sold intensively, and the price will plummet, and the investors will lose all their money

There are three characteristics of digital money MLM:

1. Digital money is a real proct, and it is highly packaged

2. The participants can get a head pulling reward, and the prize is the digital currency itself

3. Digital currency will appreciate with the increase of participants in the scam. In the cycle of digital currency appreciation, the number of participants who can obtain digital currency will also increase, and the participants, including the lowest level participants, will also gain, but in the cycle of devaluation, the bottom level participants often lose a lot

in 2017, the Internet Finance Association of Jiangsu Province issued the "internet pyramid selling identification guide", which named 26 so-called digital currencies as illegal pyramid selling projects covered or suspected to be covered with digital currency. They are: treasure money, Baichuan money, SMI, MBI, mark money, Diablo money, mmm, Fuda compound wealth management, carat money, V treasure, Vicat money, petroleum money, Huaqiang money, CB aiib Hong Kong Group, Yuansheng, Morgan money, beta money, WorldCom, u money, Jubao, 21st century fox, Wanxi wealth management, Wanfu money, Wuxing money, Yi money, Zhonghua money, etc

extended materials:

five ways to distinguish whether digital currency is pyramid selling currency:

1. Issuance mode

virtual currency does not rely on specific monetary institutions. It is proced by a large number of calculations according to specific algorithms, and is a decentralized issuance mode. Each different terminal node is responsible for maintaining the same account book, and the maintenance process is mainly to package and encrypt the transaction information by the algorithm, while the MLM currency is mainly issued by a certain organization, and the profit is made by pulling the head

2. Transaction mode

virtual currency is a kind of sporadic transaction spontaneously formed in the market, which is graally completed by a third party establishing an exchange after the scale is formed. The MLM currency is issued by an institution and traded on its own platform

3. Implementation method

virtual currency itself is an open source program, which is maintained in GitHub community. The parameters and methods of the total amount limit are shown in the open source code. The open source of MLM currency is completely ing other people's open source code, and there is no use of open source code to build programs, so its essence is controlled by the website like Q currency

4, whether to give the source code link

General decentralized digital currency will give the source code link in the prominent position of the official website, so as to show the operation mechanism of the monetary system openly and transparently. The MLM currency focuses on the transaction process of recharge purchase, but does not mention its operation mechanism. Even the website does not have the link address of the source code

5, whether the official website starts with HTTPS

generally, the addresses of the official website and trading website of decentralized digital currency start with HTTPS, and the purpose is that this kind of website can well protect the user's data from illegal theft. But the official website of MLM currency, trading website and other related websites do not start with HTTPS

2. 1、 Classification
1. Digital cryptocurrency: a digital currency created, distributed and maintained by cryptography and verification technology. The characteristic of cryptocurrency is that it uses peer-to-peer technology and everyone can issue it. For example, bitcoin, lightcoin
2. Shanzhai coin: imitates the theory of digital cryptocurrency, applies digital encryption technology such as blockchain, and issues digital currency in different instries
3. Air currency: fabricated application background. It uses blockchain and other technologies as packaging, constructs value system at will, takes illegal possession as the purpose, and swindles investors by Ponzi scheme< Second, profit model
1. The profit model of digital cryptocurrency mainly includes proction and investment speculation. Proction is also known as mining, different procts have different proction modes. Its principle is to calculate the number by computer, and finally get the encrypted string in accordance with the formula. Investment speculation is the same as investing in ordinary financial derivatives. With the change of market supply and demand, the value of money will change periodically
2. Shanzhai coin: the profit in the early stage is similar to Ponzi scheme, and the customer level is built by direct selling. The principal of later investors is the source of profits. The difference between air currency and air currency lies in: first, it has a certain theoretical application basis, such as Internet traffic, agricultural application, etc. Second, through the operation in the later stage, it can proce a certain monetary value. Third, it has certain circulation
3. High return, rapid accumulation of funds< Third, legal definition
1. It is not allowed to issue and trade digital cryptocurrency in the people's Republic of China, and its legitimacy is questioned. The main reason is that the supervision of digital currency is difficult, which may restrict the circulation of currency. In addition, because digital encryption currency has no solid value support, the huge economic bubble will easily cause financial system risk.
2. Therefore, this kind of business is the main body of the market. Most of the issuers are located in Malaysia, Singapore and other areas with relatively lax supervision and relatively open financial markets
3. Strike hard. One case was found, investigated and dealt with, and identified as financial fraud. The main issuers are generally in Myanmar, Cambodia and other areas where military protection forces are more prevalent. After raising funds from Chinese mainland, the local military will pay protection fees. Later, he directed domestic crimes abroad.

3. Yuanbao.com is a social cancer. Because there are people on the top who dare not check it, yuanbao.com attracts foreign investment by developing Yuanbao district. When the money comes in, it smashes Yuanbao coins to cut off the players. Every new coin of yuanbao.com blows how much money it makes. After it is sold to the players, it keeps falling, and then they come out with a new coin to continue to sell, When players realize that no one will buy new currency after being cheated, their corresponding countermeasures are: if no one buys new currency, they will pull up the price of new currency. Players will think that the new currency is rising, and they will continue to buy the next new currency. As a result, they will lose all their money. If you look at the complaints in Yuanbao group, you will know that Yuanbao is a website that harms the people, and bad things must be short-lived, Hope Yuanbao net retribution will come soon

4. It's not necessary to say that this thing is deceitful. If it is issued by the state, there must be government and full-time personnel with certificates.

5. It is wrong to say that China's digital currency comes from the people, because it comes from the present. Science.

6. Deceitful, dim sum, can be recovered.

7.

It can not be said to be a fraud, but there are certain risks, because digital gold currency is a form of physical currency, and its deposits are measured in gold rather than legal currency. Therefore, the purchasing power fluctuation of digital gold currency is related to the gold price. If the price of gold goes up, it becomes more valuable. If the price of gold goes down, it loses value

since there is no specific financial regulation to regulate digital gold money suppliers, they operate in a self-regulation way. Digital gold money suppliers are not banks, so banking regulations are not applicable

extended data

to explore the connotation of digital currency, we must clarify some concepts of model lake. For example, is it legal digital currency dominated by the central bank or illegal private fixed digital currency; Encryption of digital currency or electronic currency; Is it "selling dog meat with sheep's head"; "Bad money"

new technology does make the conceptual boundary of money more blurred. Theoretically speaking, the new monetary economics points out the possibility of the disappearance of money, that is, legal paper money is no longer the only medium of transaction, and is eventually replaced by financial assets issued by the private sector that generate monetary income

in reality, although the status of fiat money is still unshakable, there have been various local scenes of private money in history, such as the universal warra system in Germany in the 1920s. Now the digital currency with the characteristics of decentralization makes the challenge of private currency increasingly prominent< br />