Collective Cryptocurrency Crash: U.S. Securities Regulatory Commission Commissioner Concerns About

I have testified to history.

On Friday evening, the “avalanche” of Chinese product ideas gathered shocked investors around the world. However, on Saturday afternoon, the virtual rewards also started to come together in the form of a "flash crash".

According to the latest data, a total of 417,000 people completed their work in the past 24 hours, and the total digital contract value of the entire network reached $ 2.584 billion (about RMB 16.4 billion) . Of these, Bitcoin's 24-hour liquidation alone exceeded $ 1 billion.

According to the latest data from the CoinMarketCap website, as of 9:00 p.m. on Saturday, the global market capitalization of digital currencies was $ 2.2 trillion, down 16.74% from the previous day, and the industry has evaporated. over $ 440 billion (approximately 400 trillion won). 285.3 billion yuan).

Negative estimates from public data suggest that the Binance Coins explosion could cause Zhao Changpeng, who Forbes considers to be China's richest man, to lose more than 10 billion yuan a day.

"Flash Crash" cryptocurrency collective, 417,000 people have broken off their jobs.

We have recently seen a series of crashes in the Chinese industrial goods market. Saturday afternoon, crypto-currencies also "capped".

Expert performance counted as closed Friday

According to market data, on the afternoon of December 4, the price of Bitcoin fell more than 20% in 24 hours, falling below $ 42,000 in the near term. Ethereum fell below $ 3,500, down 21% in 24 hours.

At around 7:40 p.m. on December 4, Bitcoin was trading around $ 46,500 per coin, down 18% in 24 hours, while Ethereum was trading at $ 3,850 per coin, down to 16% in 24 hours. time. In addition, EOS over 28%, Cardano over 22%, Monero over 20%, Dogecoin over 22% and Binance Coins (BNB) fell almost 13%.

Earlier, in November of this year, Bitcoin's value crossed the $ 69,000 mark, reaching an all-time high, and the total market value of the cryptocurrency reached $ 3 trillion. However, after failing to hit $ 70,000, Bitcoin's price difference clearly showed weakness. The price of Bitcoin peaked at $ 59,000 on December 1 and has fallen since.

According to the latest data, as of 8:00 p.m. on Dec. 4, a total of 417,000 people have completed their jobs in the past 24 hours, bringing the full digital benefits of the entire network contract to $ 2.584 billion. Of these, Bitcoin's 24-hour liquidation alone exceeded $ 1 billion.

Why are cryptocurrencies considered destructive? There are many theories on the internet about this.

Some analysts have suggested that this could be a trigger for a variety of factors, including expectations of a rate hike (soaring short-term interest rates), pessimistic expectations of stagflation, and optimism at a rapid pace after l collapse of the cryptocurrency. In addition, the risk factors include the continuation of the mutation of the Omi Keron virus into a new mutant. "In short, asset risk has now been restored and the relationship between crypto assets and asset risk continues to grow."

On December 3 local time, Maria Van Kokhoff, director of emergency medical services at the World Health Organization (WHO), announced in Geneva that the new mutant virus Omi keron, as it is called, is is spread all over the world. there are at least 38 variants. Countries and regions have been affected, and affected cases have been reported in 6 regions according to WHO. The World Health Organization (WHO) recently noted that the risk of infection with omichiron, which is contributing to the global epidemic, is "extremely high" and could have "serious consequences" in some areas.

The debt of "China's richest man" Zhao Changpeng may fall by more than 10 billion won a day.

Recently, major global currency news continues, the fact that Zhao Changpeng, founder of cryptocurrency platform Binance, overtook Nongfu Spring leader Zhong Suisui, has become the newest man in China. circle of friends.

According to Chaijing, just four years after its inception, Binance has grown into the world's largest cryptocurrency exchange, with 3,000 employees worldwide, with daily revenue of $ 76 billion, more than four competitors major together. . According to insiders, according to current market sources, Binance could be worth up to $ 300 billion (about RMB 1.91 trillion).

It has been reported that Changpeng Zhao controls most of Binance's stake. According to data from "Forbes", founder Zhao Changpeng owns 30% of the shares of Binance. According to this calculation, Zhao Changpeng's present value is $ 90 billion (equivalent to RMB 573.3 billion). This value means that Zhao Changpeng has become the richest man in China and is among the ten richest men in the world.

However, on November 30, Zhao Changfeng announced on social media that if he sold 0.01% of the company's shares for $ 1, the company would be worth $ 10,000, and if the trillion coins were issued, the value would be $ 1. Selling tokens will earn you a trillion coins. And then says that a bad measurement doesn't mean anything. Amazing reaction to gold exploration for China's richest new man, valued at around $ 90 billion.

As of 8:00 p.m. on December 4, Binance Coins (BNB) was down 13%, with recent gains of $ 90.776 billion, worth over $ 13.5 billion.

On the investment side, Changpeng Zhao says he owns Bitcoin, but most of his assets are in Binance coins. However, Changpeng Zhao did not disclose how many Binance coins he held. However, according to previous public records, the Binance group owns around 40% of Binance Coins, and according to Forbes data, Changpeng Zhao owns 30% of Binance. Based on this rough estimate, Zhao Changpeng's debt decreased by 10.3 billion yuan (about $ 1.62 billion) per day.

According to previous reports, Zhao Changpeng was referred to as "CZ" as a Sino-Canadian potential in the cryptocurrency space. Born in 1977, he lived in Jiangsu Province as a child, then moved to Vancouver, Canada with his family, and now lives temporarily in Singapore.

In 2005, Changpeng Zhao established Fuxun Information, Bijie Technology and other companies in Shanghai, and made the first hot pot. He entered the Bitcoin arena in 2013 and acquired Binance with his team in 2017, offering “Binance Coins” (BNB) digital benefits. Six months later, Binance had over 6 million users and has grown into the world's largest cryptocurrency exchange, now occupying its No.1 position in the market. Changpeng Zhao hopes Binance grows at a moderate pace, saying, "Hope we can grow a bit so that other exchanges can distribute high-end users to us."

According to data from the Coinglass website, regarding bitcoin holdings, as of 9 p.m. on the 4th, bitcoin holdings on the Binance blockchain trading platform accounted for 22.18%, ranking first in the platform.

However, cryptocurrency exchanges around the world are unregulated and located in gray areas in many countries. To date, Binance has received warnings from financial regulators in the UK, Germany, Japan, Malaysia, South Africa, Singapore and other countries, and has announced the removal of users from the United States, China and Singapore.

Chairman of the United States Securities Regulatory Commission: Concerns About ETFs Directly Holding Bitcoin

According to the latest Bloomberg News on December 4, Gary Gensler, director of the United States Securities and Exchange Commission (SEC), expressed concern about ETFs directly holding Bitcoin. In response to a question from Pat Toomey, the top Republican on the Senate Banking Committee, Gensler reiterated his concerns about the unregulated and potential fraud and control of Bitcoin.

On October 15, the first US Bitcoin Futures ETF was approved. The United States Securities and Exchange Commission (SEC) has approved a list of Bitcoin Futures ETFs submitted by major ProShares ETFs under BITO rules. According to Bloomberg statistics, BITO traded over 24 million units on the first day of listing, with total sales reaching $ 1 billion on the first day, just behind BlackRock's carbon neutral ETF. First high volume ETF.

Also in October of this year, the second Bitcoin Futures ETF - Valkyrie Bitcoin Strategy ETF was also traded on the Nasdaq according to the BTF trading code. In mid-November of this year, our Bitcoin VanEck Strategy ETF (XBTF) also went public.

However, the United States remains very cautious of spot Bitcoin ETFs against the approved list of Bitcoin Futures ETFs. In November of this year, the United States Securities and Exchange Commission rejected VanEck's request for Bitcoin spot ETFs.

Gensler said he was happy with future ETFs because Bitcoin is a regulated exchange futures market, but Bitcoin Spot is not.

China tightens cryptocurrency controls

Recently, the Huobi cryptocurrency trading platform started posting internal letters warning Chinese users to withdraw their assets, and it is clear that deposit transactions for Chinese users will be closed on December 14. On December 15, the market potential for large Chinese consumers will be limited and by December 31, the retail market will be taken off the shelves.

On September 24, 10 departments, including the Corporate Governance Corporation, jointly convened a “Report on the Protection and Risk Management of Virtual Advertising”. Profit-related transactions are illegal financial activities, and it is also illegal for foreign exchange transactions to provide services to people in China on the Internet. On the same day, the National Development and Reform Commission and 11 other departments jointly issued a "Notice of Innovation in Virtual Currency Mining" Activities "to revise the" coin speculation "model of all chains.

Guosheng Securities analysts believe the form "24" risks have entered a new era for crypto stocks in China. This policy is the strictest in the history of Chinese cryptocurrency asset management since the publication of the “Token Issuance Financing Notice” (“fourth”) of the People's Bank of China and seven temples, including the Secretariat of cyberspace. September 4, 2017.

Guosheng Securities believes that "September 24" has the following characteristics compared to "September 4": public security and foreign companies have more impact, 3) more management, 4) more management skills, 5) more diverse business practices; 6) greater activity attitudes.

Munger: China has the right to ban cryptocurrencies.

“The Chinese are a good move,” Charlie Munger, 97, Charlie Munger, partner of Buffett, told a landmark conference in Sydney on December 2, according to an Australian Financial Review report. them (cryptocurrency), and our country made the wrong decision. "

Munger praised China for not letting cryptocurrency capital go too far, saying it "has taken a better stance." He also said he would not buy cryptocurrencies and hoped that cryptocurrencies were not created. He also said that the global business community is now "crazier" than the dot-com bubble of the 1990s.

"It is impossible for both sides to get involved in this madness," added Munger. “I want to sell to people. It is better for them than to sell bad things for them. People who make cryptocurrencies don't think of their customers, they think of themselves. Personally, I cannot participate in this crazy success. No it is not. Format. "