BEC opened more than 40 times? You need to understand these questions

Yesterday, a price chart went viral on WeChat Moments, showing that BEC was rising against the market trend, with the highest increase exceeding 4,000%, attracting the attention of the community.

What is BEC mentioned in the picture? In the currency introduction of its first trading platform OKEX, it is shown that BEC’s Chinese name is Meimi and the project’s jurisdiction is Singapore. The project introduction reads:

BeautyChain aims to build a truly decentralized beauty ecosystem, bringing together platforms, users, content producers, merchants, advertisers, manufacturing, etc. from the entire upstream and downstream of the beauty industry, and profoundly transforming the beauty industry through blockchain. BeautyChain will first take the construction of content ecology and beauty as the entry point, and gradually promote the construction of the beauty ecosystem. Content: A network that uses blockchain decentralized consensus technology to contribute to the content network and provide equity returns, so that content producers, content consumers, content disseminators, and ecosystem builders can all receive reasonable incentives and returns. Beauty: Beauty is a crowdsourcing scenario. Different platforms and service providers can provide various ways to beautify, and can achieve personalized beautification based on various dimensional portrait data of users; users can also provide various materials to help other users become more beautiful. The value network created by BeautyChain can encourage creation and dissemination in a decentralized way, and ultimately realize the vision of beauty.

Why does a seemingly unremarkable project token cause such a huge controversy? For investors, it may be necessary to first clarify several key questions that the community generally has about BEC:

Question 1: More than 99% of the tokens are in the hands of the team?

The currency introduction of BEC mentioned that the total issuance of Meimi is 7 billion, and the share distribution is 30% for the foundation, 10% for ecological construction, 10% for the founding team, and 50% for miners and incentives. It is worth noting that, unlike most previous community projects, there is no mention of private or public offering in the distribution method of BEC. Does this mean that before the secondary market is launched, all BEC tokens are in the hands of the team?

Since BEC is currently an ERC20 token, we queried its issuance address through the Ethereum browser: https://etherscan.io/token/0xc5d105e63711398af9bbff092d4b6769c82f793d#balances

According to etherscan, BEC has a total of 6,510 addresses and 8,219 transactions. The top 100 addresses hold a total of 69,998,573,5320 BECs, which is close to 100%. 99.9321% of the 7 billion BECs are held by the top four addresses. According to statistics at the time of writing, as long as you hold more than 689 BECs and the current price does not exceed 5,000 yuan, you are a "big holder" in the top 100 of the currency. One can't help but wonder if such a token holding ratio is a bit too concentrated?

The MeChain white paper states that 50% of the tokens will be used for user and ecological incentives, specifically to reward users and their MeChain partners, including incentives for participating in consensus calculations and maintaining the stable operation of the entire MeChain system. In the 12-page MeChain white paper, the description of its economic model is very brief, and there is no detailed description of how users can obtain tokens by participating in consensus calculations and how to obtain tokens by participating in content construction.

We do not rule out the possibility that in the future MeChain will launch its own main chain and distribute 50% of the tokens to community users. However, the white paper does not mention whether MeChain’s own main chain will be launched in the future, when it will be launched, how these 50% of tokens will be distributed to users, and the consensus algorithm designed for the main chain.

Question 2: Who is trading at the opening?

According to OKEX, as of 1:00 a.m. on the 24th, the trading volume of the three trading pairs on OKEX was BEC/BTC: 516994BEC, BEC/ETH: 420465BEC, BEC/USDT: 599305BEC, totaling about 1.53 million BEC. Calculated at the price of about 6.45 yuan at the time, the transaction volume did not exceed 10 million yuan.

Although the trading volume is not large, there is still a question: if there is no private placement and public offering, who will own the tokens that are circulated in the secondary market at the beginning? Looking back at the distribution ratio of its tokens: the foundation accounts for 30%, the ecological construction accounts for 10%, the founding team accounts for 10%, and the miners and incentives account for 50%. We have reason to speculate that the tokens currently in circulation are 0.0679% minus 49.9321% of the user and ecological incentives. However, since all tokens are currently controlled and distributed by the foundation, the distribution method has not been made public, and it is unknown how the tokens circulating in the market are distributed.

Question three: Is the relationship with Meitu just a partnership?

Meitu is mentioned many times in the MeChain white paper, which makes people think about the relationship between the two.

In early February, Meitu launched the blockchain wallet Bec. The news at the time wrote, "This is the first product in the blockchain layout. Bec wallet supports ETH and Ethereum ERC20 standard tokens. Version 2.0 will support more currencies. Bec wallet can also provide optimal transaction fee recommendations through algorithms to reduce transaction costs." Is the name of Meitu blockchain wallet Bec and Meitu chain token BEC just a coincidence?

In addition, on the homepage of OKEX's website, it is clearly written: "OKEX has received a US$10 million Series A investment from venture capital funds and individuals such as Ceyuan Ventures, Mantu Capital, Startup Factory, Tim Draper, Cai Wensheng , and Jiang Tao."

Cai Wensheng is the chairman of Meitu Xiuxiu. It is well known that BEC was first listed on OKEX without any warning. The community has made such comments:

In a recent sharing session, Cai Wensheng expressed his firm optimism about blockchain:

"I learned about Bitcoin relatively early, probably in 2011. I invested in OKCoin in 2014 and bought my first Bitcoin, but unfortunately I never made a deep investment. In mid-2017, Mr. Xue Manzi called me and asked me to invest in blockchain. I advised him that ICOs are risky and I shouldn't get involved too much. I really understood it at the end of 2017. I met many blockchain experts, including Xiao Feng, Yuan Dao, Wu Jihan, Martian, etc., including several people who own tens of thousands of Bitcoins. After in-depth exchanges with them, I understood blockchain better and firmly believed that blockchain is the future."

However, regarding the relationship between BEC and Meitu, Cai Wensheng responded positively in a WeChat group yesterday.

“Today we have received inquiries from the media regarding the cooperation between BeautyChain and Meitu. As far as we know, BeautyChain is a blockchain product developed by a third-party independent organization. BeautyPlus, an overseas application product of Meitu, has overseas promotion cooperation with it. Meitu is not involved in other related businesses of BeautyChain. In addition, we have found that some WeChat groups spread the news that Meitu issued tokens, which is even more untrue. Meitu has not issued any tokens. Please be informed.”

Interestingly, a well-known investor later posted the following message on WeChat Moments:

What do you think?