Be careful of the "mines" in the digital currency and Fintech world

Crazy Commentary : With the development of digital currency and Fintech, many discordant figures have emerged, such as the "Asian Shield Coin" incident. In this regard, Professor Huang Zhen, President of the China Internet Finance Innovation Research Institute, Director of the Institute of Financial Law of the Central University of Finance and Economics, and founder of the Internet Finance Thousands of People Association, expressed his views and reminded investors to be cautious about digital currency investment and to be wary of various financial frauds carried out under the banner of digital currency or Fintech. It is better to be careful.

Author: Amber Dingding

With the global craze for digital currency, a wave of digital currency enthusiasts has also emerged in China. In addition, the investment hotspots and blockchain technology applications have also become the "hot cakes" that venture capital institutions are vying to pursue. As the development heat continues to rise, some companies that "sell dog meat under the guise of sheep" have begun to appear in the industry, swaggering into the market under the banner of digital currency licenses.

According to data, a company called "Yidun Coin" that claims to be the leader in the digital currency industry has begun to appear in the streets and alleys, with overwhelming publicity and huge momentum. It claims that "Yidun Coin" combines all the advantages of Bitcoin, can be mined on one's own computer, and has a transaction speed about 5 times faster than Bitcoin, making it a truly encrypted digital currency. According to multiple sources, the currency claims to have connected with many third-party public trading platforms and many offline physical stores such as hotels and shopping malls, and has won the first Internet finance license. It has now entered 14 countries and regions, and will obtain direct sales licenses in Thailand and Malaysia in June and July. It will later participate in the exhibition of the ASEAN Free Trade Zone ASEAN Expo...

Regarding the claims of "Yadun Coin", Professor Huang Zhen, President of the China Internet Finance Innovation Research Institute, Director of the Institute of Financial Law of the Central University of Finance and Economics, and founder of the Internet Finance Thousands of People Association, conducted relevant analysis on the relevant issues. Professor Huang Zhen reminded investors to be cautious about investing in digital currencies and to be wary of various financial frauds carried out under the banner of digital currencies or Fintech. It is better to be careful.

The advertised store connection and direct sales license are not true

According to the promotional materials, "Asian Shield Coin" claims to have connected with many third-party public trading platforms and offline physical stores, and has obtained the first Internet financial license. In June and July, it will obtain direct sales licenses in Thailand and Malaysia. Professor Huang Zhen expressed his views on whether these contents are in line with current policies and whether the development of digital currency has developed so fast.

Professor Huang Zhen said that from the risk warnings related to Bitcoin that the central bank has issued, Bitcoin cannot be used as a currency for payment, and cannot be used for accounting in corporate financial processing. Although the central bank held a seminar on digital currency some time ago, it does not mean that the central bank has clearly legalized digital currency, but is more concerned about the development of digital currency. As for the so-called docking trading platform and physical stores, it is difficult for us to judge how much of the content is true before seeing the specific contract texts disclosed publicly.

Regarding the claim that “Yiduncoin has obtained the first Internet finance license in China”, Professor Huang Zhen believes that this kind of publicity is obviously unprofessional. There is no so-called Internet finance license in China. Even if the currency really obtains a certain license, what kind of license it has obtained, whether it is an online payment license or a currency issuance license, and the issuing authority, these specific information are not shown in the public information of Yaduncoin. This will mislead investors and even be false propaganda. The so-called “first Internet finance license” is also out of thin air.

How to Identify Cryptocurrency or Fintech Scams

Professor Huang Zhen said that the so-called digital currency has not yet been recognized by official institutions. The national legal currency must be issued by the central bank. Even though the central bank has stated that it is studying digital currency, it has not yet issued digital currency, nor has it explicitly or authorized any other institution to issue digital currency. Even if investors claim to invest in digital assets, it depends on whether it has value.

Here are some tips on how to identify scams using digital currency or Fintech as a gimmick:

First, we need to pay close attention to the documents issued by authoritative institutions such as the People's Bank of China and the public security organs, actively study the relevant content released by official organizations, and pay attention to the official public attitude and handling methods of such incidents;

Secondly, learn relevant information from professionals in the industry and use it as a reference. Be especially careful not to be misled by pseudo-experts. Pay attention to what these experts have done. If they step out of their familiar fields, they are no longer experts. This can help you identify whether they are pseudo-experts.

In addition, appropriate experimental investments need to be made to track and understand the platforms and products, and to test and determine over a certain period of time whether their operations are real business operations or a scam package.

In addition, it is necessary to conduct in-depth verification and verification of its promotional materials. Any activities with false propaganda or promises of inflated returns often contain traps. We hope that investors will keep in mind that "investment is risky and you need to be cautious when entering the market."