Author: Wang tree
“Do you know that Huahuo is a capital order?”
“Yes, everyone who plays knows that everyone is just betting.” Player Zhang Cheng (pseudonym) told the chain catcher that fireworks are just a tool for making money for him, a game.
Zhang Cheng joined Amber in 2018 and became a member of the coin speculation army. In the past, most of his transactions ended up losing money, but he was able to make a lot of money from the project fireworks in the cloak of blockchain. In his eyes, flower fire is the “bitcoin” in the capital market and is synonymous with faith.
Unfortunately, the fireworks known as “Bitcoin in the circle” collapsed on November 29 this year. Almost all the funds on the exchange fell by more than 80%.
Before and after the crash
Huahuo is one of the funding projects under the cloak of blockchain finance. Zhang Cheng still retains the video of the fireworks conference a few months ago: the slogan “Flowers bloom, define the future” is displayed on the large LED screen in the center of the venue. There are nearly 100 people on the scene, all of whom are so-called believers. While waving the newly-claimed promotion mission statement, they stood up and sang to the music “We are a family, a family that loves each other.”
These participants come from different places and have different professions. Most of them are well-dressed and seem to live a rich life. Here they have a common identity as the firework evangelist (leader).
Huahuo provided these evangelists with gold bullion awards, travel and regular wages and other benefits. Under the concurrent incentives and education, the number of registered members of Huahuo exceeded 200,000, and the price of the platform currency HDU rose from about 1 yuan to a maximum of more than 180 yuan, which was at least 180 times higher. These data dwarf most exchanges.
In fact, Huahuo Exchange is similar to conventional digital currency exchanges. In addition to trading Huahuo platform currency HDU, users can also trade tokens issued by other fund-based projects. Officials are mainly responsible for the promotion of the platform currency HDU. The HDU issuance volume is 1 billion. The first phase of the base currency is 10 million, and the remaining 990 million are issued in five stages.
Before the crash, there were about 30 million HDUs in circulation on the market. Based on the initial maximum unit price of 26 US dollars each, the market value was about 780 million US dollars. HDU holders mainly make profits through two methods: currency holding income and promotion income. The official uses complex algorithms to ensure the continuous operation of the project.
The so-called income from holding money is the income of “static holding money”, the purpose is to use the value-added effect brought by long-term investment to attract investors. The so-called promotion registration income means that users can purchase platform currency HDU on Huahuo platform and activate the promotion link relationship to become a promoter. The promoter is also a coin holder and can enjoy double benefits. The purpose of this mechanism is to absorb more through fission. People and funds.
These routines are no different from the conventional funding model. The only difference lies in the promotion ability of the leader (super preacher), which will determine how big the funding can be. In the eyes of Chen Dafei (pseudonym), who often plays the capital market, the biggest advantage of Huahuo compared with other capital markets is that it has done a good job of leadership training, and at the same time it has expanded its target market from the southeast coastal area to the inland, and the scope of fission is larger.
This kind of geographical expansion strategy in promotion is very consistent with the viewpoints put forward by the “Economic Knowledge” magazine in the article “Crazy Funds” earlier. The report pointed out that most of the funds are distributed in economically developed provinces. These areas have a strong technological and financial atmosphere, people are more receptive to new things, and the middle class is large and has certain investment capabilities.
In particular, coastal provinces have a large number of small and medium-sized business owners. Although they have the financial strength, their enterprises are affected by the economic development environment, and their development has encountered bottlenecks. The stock market and the real estate market continue to be weak. They need to find a way out for funds. Therefore, many funds have their headquarters. In Beijing and coastal provinces.
And Huahuo is one of the capital projects with the headquarters entrenched in Shenzhen.
A veteran player Chen Dafei told the chain catcher that more than 10 currencies were listed when the fireworks were at its strongest, most of which were fund tokens. These tokens can be understood as a contract system, and each project is undertaken by a separate team, and An offline office reception location is required. The listing party needs to purchase HDU as a listing fee, but after listing, the market needs the project party to promote it. Among more than 10 currencies, the NEU invested by Zhang Cheng increased from about 1 yuan to 38 yuan, an increase of more than 30 times.
Most of the other currencies in the Huahuo trading zone have achieved tens of times of increase. Such returns are rare in the stock market. Huahuo has defined its position in the eyes of investment by virtue of this wealth effect. Participants like Zhang Cheng even identified Huahuo as the “bitcoin” of the circle.
The reason why he has such a high evaluation of Huahuo is that the fund is very good at making use of social hot spots, new policies and economic trends. For example, treasure coins and dark coins with the help of the Bitcoin boom, and CAI mining machines that use distributed storage and new infrastructure concepts, as well as the early Internet finance and O2O models of rent treasure and jubao finance.
However, the circumstance of “Bitcoin” did not continue its brilliance. Since November, all the coins on the fireworks began to fall. It was not until November 27 that Zhang Cheng found that he could not withdraw the coins, but at this time it was too late to stop the loss.
“It’s my first time to play with plates. I first bought NEU for 40,000 yuan at the Fireworks Exchange. Later, I made more than 400,000 yuan, which was at least ten times higher. It was amazing.” Zhang Cheng told the chain catcher that he was funding Part of the profit on the plate was later lost in the speculation. In order to make up for these losses, he invested in another currency on the Galaxy trading platform of another exchange—UBT/RFB/FGO, etc., which was unfortunately reinvested. The money collapsed and the money was in the water.
Radox’s second life
Previously, Zhang Cheng had always believed that the mechanism of Huahuo was not likely to collapse at all, because the people who brought him into the industry once said that Huahuo has introduced a dynamic rating and reward mechanism in order to motivate promoters for a long time, so that the promoters are in a state of once and for all, lacking Promotion motivation.
“It’s okay to die, but I always have to know how it died.” Zhang Cheng asked about the details of the crash. A friend told him that the police were cracking down on funding chaos recently. Plustoken was arrested, and many funds were thundered one after another. Not long ago, the technicians of Singularity were also arrested because the technologies of Singularity and Huahuo were made by the same company, and they were all collateral effects.
These are all expected for the old player Chen Dafei. He told the chain catcher that once the fund project starts to open the meeting frantically, and the token price suddenly rises or falls sharply, investors need to be careful, and it may be a precursor to the collapse. “Huahuo either ran off or was caught. The crash is the end sooner or later, but what the outside world doesn’t know is that after the singularity accident, the high-level Huahuo have successively gone to sea.
Chen Dafei revealed that Huahuo’s boss, Li Mingxing, was born in the radar team. The system and Singularity Exchange of Huahuo Exchange are both from Shenzhen Laser Technology. The members of Laser Technology are also born out of the early radar team. Currently, the company has ceased operations.
Not only that, not long ago, some self-media pointed out that in view of the saturation of the market, the operating space of the founding team of Radarcoin has become smaller. In order to continue to attract money, the current fireworks were launched. To a certain extent, Fireworks is the second life of Radar. Its success lies in copying the model of Radar Coins. At the same time, it gives fireworks participants a reason based on the early profitability of radar. A wave of nested operations attracts Many of the promotion teams that withdrew from Radar Coin earlier. In addition, it is worth noting that the open-screen advertisement of Radarcoin wallet has blatantly diverted fireworks transactions.
Radarcoin is no stranger to people who are in the circle. It is also known as Radar, and its token is VBC. According to Baidu, it is an Internet financial tool established in 2014 (equivalent to Internet banking), which can help Users can make payments, transfers and free exchange of global currencies simply, quickly and at low cost.
The introduction also pointed out that VBC, like Bitcoin, is a real virtual currency with open source code launched by the American Radar Lab. It belongs to the same blockchain technology as Bitcoin. It is Radar Lab and the “Chinese central enterprise Datang Telecom”. Kaiyuan Tongbao trading platform launched in cooperation.
But in fact, Radarcoin has long been characterized by the state as a new currency pyramid scheme, and both sales and publicity are illegal. Chen Dafei told the chain catcher that everyone who is familiar with Radarcoin knows that this model will not collapse. On the one hand, participants have strong beliefs, and on the other hand, it can freely replace its shell, just like an immortal centipede.
The chain catcher found out that Radarcoin is not the first-generation disk. It also has a predecessor-Vpal, or V Bao for short. It was exposed by the media as early as 2014 as suspected pyramid schemes. The transformation of V Bao to radar is like radar to fireworks. In the same transition, MLM coins are sold in a different law, which is essentially a Ponzi scheme.
The essence of the Ponzi scheme is to pay the investment of the latter round of investors as investment income to the investors of the previous round. By analogy, more and more people and funds are involved. In theory, the Ponzi scheme can be one round Rolling indefinitely, but in actual operation, investors and funds are limited. When investors’ funds and funds are unsustainable, the scam will suddenly collapse.
At present, Huahuo has been unable to withdraw coins for more than a month, but no large-scale rights protection incident has occurred. Zhang Cheng told the chain catcher that although at least 80% of investors are losing money, the Huahuo consensus is very strong and the wealth effect is also strong. Most investors still believe in Huahuo. At present, many people in the over-the-counter trading group are still frantically collecting USDT in the Huahuo account.
Why is the capital market a belief?
“A lot of Huahuo U, the price talks about your satisfaction, you need to come.” It is an advertisement in an over-the-counter trading group that frequently swiped the screen this week. The interesting thing is that since the news of the Huahuo crash on November 29, the off-market The trading group staged a scene from a large number of USDT in the collection of fireworks to a large number of USDT in the production of fireworks. This contrast corresponds to the weakening of HDU holders’ expectations of the recovery of the fireworks. “They also hope that the fireworks can be good, and they are hunting the bottom, but my brother reminds you not to follow the thunder. The wind is tight at the end of the year, so don’t participate.” Zhang Cheng’s friend advised him.
After observing the trading group for a few days, the chain catcher found that although there were continuous advertisements for receiving and selling goods in the trading group, they had been in a state of no one. After contacting a buyer of Huahuo U, The other party said that he was just an intermediary, and the real buyers were those who believed in the funds of the Huahuo Radocoin series.
The intermediary also revealed that the news in the trading group is mixed, most people are consignments, and almost no one is actually receiving the goods. “To tell you the truth, I also earn pocket money. Just those old men and old ladies are gambling. They used to make a lot of money by playing Radar coins. They understand the pattern of fireworks and believe in this plate. They don’t care about taking some money to collect. Low-priced bargaining chips.” The intermediary said that the current price of Huahuo U is 1.35 yuan, which is 90% lower than the price before the crash, and it will only get lower and lower. Those so-called believers will definitely lose money in the end. .
The believer in this intermediary’s mouth has a commonality-greed.
The fundamental reason why these grandpas and aunts believe in Radocoin is that they have obtained high income on Radocoin in the past. Radar coin was launched in 2015. The price of the coin rose to over 580 yuan per coin, which was even more than a hundred times higher than that of Huahuo. Even if you don’t earn promotion income, the static income earned by holding the coin is more than the interest given by the bank. high.
“Playing the capital market is the same as speculating coins. You must first check whether its team is good or not, whether the marketing strength is strong, the consensus is enough, and whether it can attract capital. These are all determined, and then bet on the coin. Whenever there is an outbreak, the same is true for the capital market. As long as the consensus is strong enough, everything can be achieved. For example, the HDU of Huahuo can be consumed in some merchants. How many coins can Amber do?” Zhang Cheng said that most of Amber It is a netizen, very illusory, but in the circle, offline conferences are often held, which not only strengthens faith but also meets more people.
There are not a few investors like Zhang Cheng, as the “Economic Knowledge” magazine has mentioned in the typical case of victims of capital stocks.
In 2015, investor Mai Sui invested in a project called Baichuan Coin at the encouragement of a friend. After more than a month of testing the waters, he made a small profit. Mai Sui said that this model has subverted her previous understanding of investment and financial management. After experiencing the sweetness, Mai Sui began to take stock of Baichuan Coin. However, within two months of the investment, it was reported that Baichuan Coin Company was investigated and executives were being investigated. Detention news.
Since then, the investors of Baichuancoin quickly divided into two groups: the sticklers and the rights defenders. The adherents believe that this is a conspiracy of competitors and that Baichuan Coin will continue to develop after a difficult period; the rights defenders believe that Baichuan Coin is a scam and pyramid scheme and call on everyone to join forces to defend their rights.
Maisui chose the Perseverance faction. He imagined that Baichuan Coin could continue to develop, and she hoped to recover all the principal. However, this illusion was finally shattered after the court verdict announced that the Baichuan Coin team was sentenced to 13 years and 6 months in prison and a fine of RMB 20 million.
Zhang Cheng’s thoughts are similar to those of Mai Sui. They all know that the fund is a scam, but they still have speculation and luck. Whether it is fireworks or radar, or the participants in the article, they are all people who are driven by profit, which is also the eternal weakness of human nature.
Back in the over-the-counter trading group, the advertisements of Shouhuahuo U are still on the screen. “Is it shipped today? Think about it. It may be really priceless if you delay it.” After asking the intermediary a few questions, the reporter of Chaincatcher still received frequent urges from the intermediary for the next few days.
However, now Zhang Cheng and many players around him have already withdrawn from the over-the-counter trading group and downloaded a new exchange app, “it is said to be a new shell of fireworks.”
Reference materials: “Crazy Funds”—-Journal of Economic Knowledge, Issue 9, 2016
