Bitcoin climbed to 24,000 dollars and all beings cheered, and the life of the three-year-old girl seemed to have been forgotten.
In June, the shocking case of suicide with his wife after the murder of a daughter. Following the live broadcast of the trial, we discovered that the Dalian man Zheng Dawei was a Bitcoin contract gambler. Zheng Dawei’s daughter’s life was fixed at 3 years and 2 months, and she did not even eat a birthday cake.
Some netizens disclosed that Zheng Dawei made a lot of money in 2017, but he has borrowed a lot of money at a loss. Someone in his circle of friends lent him 1.5 million, 1 million, and 300,000 without paying it back. During the trial, Zheng Dawei said that he lost more than 20 million in bitcoin speculation, 500,000 came from his wife, three to four million came from his parents, and the rest came from the savings of the “digital currency speculation” and loans from relatives and friends.
The current Bitcoin bull market has just exceeded 24,000 US dollars. At any point in time after Zheng Dawei’s 17 years of profitability, whether he holds or buys Bitcoin spot, or buys mining machines for mining, he will retain and Make a lot of profits.
The only thing that can burn 20 million on Bitcoin is a contract.
The Chinese missed DeFi, but rushed into the contract field. According to SKEW data, the top four Bitcoin contract trading volumes are all institutions from China (or Chinese founded). The top three are naturally the three famous exchanges, and the fourth is this year’s upstart Bybit, whose contract trading volume has surpassed BitMEX, which it once imitated.
Binance CEO Changpeng Zhao once said: The insufficient number of users in the currency circle and the lack of depth lead to high risks in contract transactions and frequent liquidation events. Therefore, Binance does not touch the contract trading business in order to protect the interests of Binance investors.
Tonight and this evening, both Huobi and Binance have invested heavily in the contract battlefield, surpassing the established contract exchange OKEx. Huobi’s 24-hour contract trading volume has reached 2.4 billion US dollars. Their leverage ratio is up to 125 times, and the loss of 20 million is naturally not surprising.
However, the main contract traders of these four major exchanges are institutions. For retail investors, preferential policies are limited and they will try to warn of risks. In addition to the mainstream exchanges, the “gambler model” of small and medium exchanges + single teachers + retail investors is spreading quietly in China.
Many exchanges such as X, B, C, and M are known as local contract kings. They cooperate with “Teachers with Orders”. 70% or even 100% of the handling fees are paid to the Teachers with Orders, using WeChat, QQ, etc. Pull in retail investors, and then complete the harvest by manipulating the K-line and your counterparty, with leverage up to 500 times. Many users are surprised to find that when making money, the exchange will use the excuse of risk control and cannot withdraw coins; once the profit is lost, the withdrawal returns to normal.
In fact, in the regulatory frameworks of various countries/regions, derivatives are taken cautiously, and most of them will stipulate the leverage multiple of derivatives. For example, Japan limited it to 4 times in 2018; the United States needs to apply for a cryptocurrency derivative brand license. 5-6 years; Hong Kong trading cryptocurrency, only allows professional investors and institutional investors (individuals above 8 million Hong Kong dollars and institutions above 40 million) to enter.
Some people argue that gambling is part of human nature, and there is demand when there is demand; gambling scenes outside the Bitcoin contract are everywhere; tragedies are just an example, and most people only use it for entertainment or investment.
This statement ignores two points. First, there are good and evil in human nature, and marketing gambling contracts to retail investors is stimulating the evil of human nature; second, there is a great disparity between the strengths and weaknesses of people. The project parties/external insiders of the exchange have actually formed a hunt for retail investors.
If the future judgment documents disclose the name of the exchange on which Zheng Dawei trades the contract, it may cause a huge shock in the industry. Under the surging public opinion, it is not impossible for the regulator to crack down again. Wu said that the blockchain suggested that the four major contract exchanges should voluntarily prohibit the provision of highly leveraged contracts to retail investors or impose strict caps on capital.
Maybe similar tragedies will happen again, but on the road to hell, we can set more obstacles.
