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Outlook blockchain becomes a hot promoter of pyramid selling fraud. There is an exaggeration of "ulterior motives" behind it

Time : 12/09/2021 Author : zilned Click : + -
        ◆ some currency issuing institutions, big V celebrities, investors and other stakeholders use the attributes of the media platform to wantonly advocate digital currency, mislead the public, and circle money by issuing tokens in disguise, which has formed an ecosystem of token issuance fraud. ◆ the top priority is to distinguish between chain circle and currency circle: many chain circle entrepreneurs pay attention to blockchain application research and development, and currency circle needs to be treated with caution if it is connected with virtual currency. Invest 80000 yuan, and change to 800000 yuan after three months? Recently, Shenzhen police cracked a major fund-raising fraud. Under the guise of blockchain concept and 10 times earnings, thousands of investors were deeply involved, with the amount involved as high as 307 million yuan.
        Under the mysterious veil of blockchain, criminals have taken advantage of mobile thinking, and blockchain has become a sign of economic crimes such as fraud and pyramid schemes. Why is blockchain often misused by illegal acts such as pyramid selling fraud? In addition to the unknown, what is the function of blockchain technology itself? Since this year, with the strengthening of supervision, the cooling of currency speculation has brought new opportunities to the development of blockchain. How about the implementation of blockchain commercial applications? The reporter of outlook Newsweek recently conducted an investigation. When the three-month capital release period promised by the trading platform expired and the staff began to kick people in QQ group, Tang Haiyan, who lives in Bao'an District, Shenzhen, realized that she might have been cheated.
        Previously, Tang Haiyan, with the introduction of her classmates, invested 80000 yuan to buy a virtual currency called Puyin coin. The other party said that this currency is the most advanced blockchain technology at present, with Tibetan tea as collateral. I also saw it ‘ Technical white paper ’, I don't understand blockchain, so I didn't read it carefully. Although she doesn't know much about blockchain and virtual currency, Tang Haiyan is full of expectations for the high investment income. She told reporters that the companies that issue silver coins will split the virtual currency at a ratio of 1 to 10 on a regular basis, which means that each split will increase the value of silver coins in investors' hands by 10 times.
        After only one split, her investment of 80000 yuan is equivalent to buying 800000 yuan of ordinary silver coins, which can be sold on the trading platform to obtain huge profits. According to the rules of the trading platform, the newly purchased ordinary silver coins cannot be traded immediately, and they must be frozen on the platform for three months before they can usher in the release period. However, when three months passed, Tang Haiyan not only did not wait for the assets to double, but also the 80000 yuan frozen on the platform could not be used for trading. Other investors began to question the authenticity of this investment in the QQ group. As a result, the company staff kicked these investors out one by one, which made me feel bad.
        She said. Facts have also proved Tang HaiYan's intuition. At the end of March, 2018, Shenzhen police detected a major fund-raising fraud, with a fraud fund of 307 million yuan. In this case, Shenzhen Puyin blockchain Group Co., Ltd. involved in the case issued virtual currency in the mode of blockchain + Tibetan tea to obtain public deposits. Tang Haiyan was one of thousands of victims. Shenzhen police investigation found that the company claimed that investors could buy and sell ordinary silver coins on jucoin online, a virtual trading platform, in order to earn a price difference. In fact, the change of its buying and selling price is that the company uses the investment funds of investors to operate behind the scenes, and once raised the price of Puyin coin from 0.5 yuan to 10 yuan, allowing investors to taste some sweets.
        After a large number of investors entered the market, the company continuously cashed out through malicious manipulation of the price trend of the silver coin, which eventually led to the worthlessness of the silver coin in the hands of investors. In April, 2018, Jinan police removed a pyramid selling Gang under the guise of blockchain e-commerce, the original poverty alleviation stock of the western development country, arrested more than 10 main suspects, frozen more than 100 accounts involved, and seized more than 300 million yuan of funds involved. Jinan police said that huileyi e-commerce company has designed fake virtual disks on the network and released various virtual currencies such as the so-called precious coins and precious coins on the grounds that the country is vigorously developing the big data industry. Under the guise of giving gifts, they first gave a certain number of virtual currencies to New MLM personnel, each of which was priced at dozens of yuan, and then artificially increased the value of the virtual currency to more than 100 yuan or even hundreds of yuan, attracting people who did not know the truth to join. Finally, they cut leeks through the cyclical fluctuations of the so-called depreciation of virtual currencies, and repeat it again and again, ultimately achieving the purpose of seeking illegal interests.
        In Xi'an, the local police also successfully cracked a huge online pyramid selling case under the banner of blockchain. According to the police, the suspect Zheng organized nine network platform administrators, including Zhang and Li, to sell virtual Datang coins on the network platform in the consumption era at the price of 3 yuan each by means of mass pyramid selling and online pyramid selling since March 28, 2018, and manipulated the value increase range; At the same time, promotion meetings were held in many cities at home and abroad to attract members. According to the offline days of member development, the gang has developed a total of more than 13000 registered members. At present, it has been found that the case involves 31 provinces, cities and autonomous regions across the country, with a fund of more than 86million yuan.
        Tencent security joint laboratory released the 2017 Tencent MLM situation awareness white paper, which said that in recent years, various types of overseas capital disk, virtual currency, ICO (blockchain project initial public offering token financing) projects have emerged in an endless stream, which hides many risks, such as illegal issuance, false projects, cross-border money laundering, fraud, MLM and so on, resulting in a large number of funds flowing abroad. Once the market collapses, runs away or loses contact, Investors often have no way to complain, and the losses are difficult to recover. Such as Baichuan coin, mark coin, beta coin, Diablo coin, etc. Our reporter searched the Chinese referee's website with blockchain virtual currency as the keyword and found that since 2017, there have been nearly 600 related litigation disputes, and Guangdong, Zhejiang, Beijing and other places are relatively concentrated.
        The reporter of outlook Newsweek learned from interviews in Guangdong, Shandong, Shanghai and other places that most people know that the concept of blockchain is very popular, but it is unclear. There are different opinions about the specific functions of blockchain: some people think it is used for investment, wealth management, currency trading, others think it is a major invention of the same magnitude as the steam engine, and some entrepreneurs are even more eager to seize this once-in-a-lifetime opportunity to get rich. Many insiders said that it is precisely because people have many misunderstandings about blockchain that criminals have opportunities to fish in troubled waters and mislead investors. First, blockchain is not equal to virtual currency. By the end of last year, the number of domestic ICO participants and total trading volume had doubled, a large number of digital currency exchanges had fled overseas, and the proxy investment model had involved more ordinary people in high-risk investments.
        We media and celebrities in many industries have formed interest alliances with issuers and digital exchanges to endorse and create public opinion for the air currency project platform. In December last year, nine departments including the people's Bank of China identified ICO as suspected of illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities. During the interview, many people told our reporter that the existence of tokens has built a set of equity mechanism for the development of blockchain technology, which is indispensable to stimulate the prosperity of blockchain applications. Market practice in the past five years has proved that blockchain applications without equity mechanism are like a market economy without computers connected to the Internet and without money, and the application scenarios and development speed are greatly reduced.
        Said an investor in Shanghai. In fact, the token represented by bitcoin is only the first product to verify blockchain technology, and there is no equal sign between the two. Moreover, the existence of token has had an obvious negative effect on the development of blockchain. Xiao Wei, chief engineer of Baidu blockchain, told our reporter that the myth of ICO sudden wealth shakes the R & D concentration of blockchain technical talents, and the myth of speculation of sudden wealth with hundreds of times of return tests the patience of blockchain technology R & D talents. In the circle, we have worked together to develop blockchain technology ‘ Comrades in arms ’ Many of them have gone to issue coins, and few of them can still adhere to technology research and development and application.
        Xuzewei, Secretary of the Party committee of the Beijing Internet Finance Industry Association, said that under the background of China's ban on ICO, many domestic start-ups promoting blockchain applications are selling dog meat with sheep's heads, wrapping the originally worthless tokens through the concept of money. ICO has polluted the good atmosphere of innovation and entrepreneurship and created a product that can be speculated. Many young people do not think about entrepreneurship well, but are thinking about issuing money, which makes everyone have the illusion of becoming rich overnight. At present, more and more people in the industry are beginning to think about whether the development of blockchain must rely on the issuance of tokens to achieve incentives. Guo Dagang, Secretary General of Beijing Internet Finance Industry Association, told our reporter that the so-called incentive mechanism is only the theoretical basis for the project party to issue tokens for itself.
        Huoxuewen, director of the Beijing Municipal Bureau of financial work, also believes that if blockchain does not get rid of the dilemma of issuing money, it will never find a mechanism for legal implementation. Third, the smart contract embedded in the blockchain can be automatically executed based on the contract, so as to improve work efficiency and reduce the risk of default. The industry generally believes that blockchain has broad application prospects in finance, logistics, trade and other fields. In fact, blockchain is not omnipotent, and its functions also have many limitations. It is generally believed that, according to the characteristics of its cryptography, if you want to tamper or fake on the blockchain, you need to control more than 51% of the nodes in theory. When there are enough nodes in the blockchain, this widely participated trust creation mechanism is difficult to tamper with.
        However, in reality, the digital currency exchange is frequently attacked and even stolen. On June 20, 2018, the bithumb exchange of South Korea announced on its official website that the exchange had been attacked by hackers and stolen cryptocurrencies worth 35billion won, or about 32million US dollars. Ji Xinhua, known as China's first generation hacker, said that blockchain will continue to face attacks, and information disclosure is prone to occur in the process of uploading data to the chain. Some insiders also worry that once the super computing power of quantum computing is realized, it will also have a direct impact on the blockchain. Zhao Yao, a special researcher of the Institute of finance of the Chinese Academy of Social Sciences, told our reporter that the academic community had confirmed that blockchain was not perfect as early as 2013, and there were many cheating strategies.
        As long as there is sufficient economic incentives, controlling attacks on more than 51% of nodes does not exist in theory. Zeng Guang, Secretary General of Shenzhen Internet Finance Association, said that blockchain technology itself is not irreplaceable or subversive. Some criminals exaggerate the role of blockchain to illustrate that blockchain has great investment value, which deserves the vigilance of investors. Third, the popularity of blockchain is not complete. The emergence of we media, which is mainly concerned about ICO projects, has become a noteworthy abnormal phenomenon. Most of these we media have received financial support from the principals of the exchange and currency circle investors, and the objective independence of their reports is difficult to guarantee. Most of them advocate ICO and currency speculation, excessively raising the prospect of digital currency, and creating the convenience of public opinion dissemination for the illegal fund-raising of problematic projects.
        Xu zewei said that some blockchain we media investors themselves are investors in ICO projects, and their profit model is to charge soft text fees and project promotion fees, and become public opinion helpers for token issuance. Some media have developed into proxy investment institutions to make profits. In the month before and after the Spring Festival this year, hundreds of wechat official account and thousands of wechat groups related to blockchain and digital currency appeared in a centralized manner. Among them, the wechat group of three o'clock sleepless blockchain is the most popular because many celebrities and stars have joined to create public topics related to blockchain. Xiao Feng, vice chairman of Wanxiang holding group, was invited to join the three o'clock group, and then voluntarily withdrew many times.
        He told our reporter that the emergence of three o'clock group and other we media, taking advantage of the hot topic of blockchain to make noise and add fuel to the flames, is actually to manipulate public opinion, attract new investors, and finally cut leeks and entrap people. Facing the potential fraud crisis, how can ordinary people avoid being cheated? Zeng Guang suggested that on the one hand, we should treat the value of blockchain objectively and rationally, don't believe the promises of hype, especially avoid blind and herd investment mentality; On the other hand, when encountering blockchain related investment projects, don't click unknown links at will, and don't easily transfer money to personal accounts. Be sure to verify their company information through official channels to prevent falling into false investment scams.
        In November 2017, ant financial, a subsidiary of Alibaba, applied blockchain technology to food safety and authentic traceability. 26 brand milk powder produced in Australia and New Zealand have their own identity cards. In the future, such technical means will also cover about 3700 commodity categories in 63 countries and regions around the world. In addition, ant financial has also introduced blockchain technology on the Alipay love donation platform, enabling the traceability of the source and destination of donations. As of January 18, 2018, a total of 21million people have donated to 831 public welfare projects, with a donation amount of 367million yuan. Insiders told our reporter that at present, blockchain applications still have problems of flashiness.
        The 2018 white paper on China's blockchain industry released by the information center of the Ministry of industry and information technology in May this year shows that some blockchain application projects have unrealistic publicity and hype, which makes the market valuation deviate from the basic value or are given too high expectations; Some projects do not really use blockchain technology in essence, but only under the banner of blockchain; The so-called innovation of some projects is divorced from the needs of the real economy and is entirely speculative.
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