Can "Fire Captain" He Yi reverse the Binance crisis this time?
Due to founder Zhao Changpeng's inappropriate speech on IEO, Binance once again fell into a crisis vortex. "Fire Captain" He Yi first posted on Weibo, and then frequently accepted media interviews. Can she turn the crisis around this time?
He Yi is "dismantling the stage"
On March 12, Binance founder Zhao Changpeng said in an interview with a certain media: "The core of the IEO model is to find good projects...We welcome other exchanges to copy."It is not difficult to see that Changpeng Zhao is full of confidence in the restart of IEO on Binance LaunchPad. Sure enough, IEO (full name Initial Exchange Offering, that is, the first exchange offering) became famous, and other exchanges were ready to take a share with Binance Launchpad. However, co-founder He Yi jumped out and continued to "dismantle the stage", trying to clarify the relationship between IEO and Binance.
He Yi, the co-founder of Binance, posted on Weibo on the 17th that he didn’t even know what the E in IEO was? In an interview with the media on the 21st, he said that he did not know who proposed the concept of IEO, but it was definitely not Binance.Why did an IEO make her so sensitive, and she even expressed her negative words many times?。
Sword of Damocles
When Sequoia Capital sued Binance last year,Binance CEO Changpeng Zhao tweeted that all projects that apply to be listed on Binance may soon be required to disclose whether they have a direct or indirect relationship with Sequoia. Less than an hour after the tweet was posted,He was quite dissatisfied with the media and posted two Weibo clarifications: "Zhao Changpeng refers to the fact that future projects that apply for listing on Binance need to disclose whether they have received direct or indirect investment from Sequoia." It is not as described by the media. That would "clean up" Sequoia Capital-related projects. Later, Changpeng Zhao also issued a clarification.In this way, it seems that He Yi's "demolition" is false this time, and I fear that "fire fighting" is true.
This is because IEO, like previous ICOs and STOs, uses Tokens for financing. The issue of legality has always been the sword of Damocles above its head, and it is impossible to escape the fate of a flash in the pan.On March 21, the Beijing Mutual Finance Association issued a document "Risk Warning on Preventing Illegal Financial Activities in the Name of "Virtual Currency", "ICO", "STO", "Stable Coin" and Other Variations, pointing directly at IEO and other illegal public financing behaviors.
also:Since 2018, the United States has strengthened the supervision of ICO. On March 7, 2018, the US Securities Regulatory Commission began to supervise ICOs using the SAFT agreement and issued subpoenas to 80 digital currency companies. At present, the US SEC regards most digital currencies as securities, and the applicable law is the same as that of stocks, so the digital currency listed on IEO is also applicable to this legal clause.
In this way, it is easy to understand why He Yi has been frequently interviewed by the media recently, and keeps asking where E comes from. This is to isolate the IEO and the Binance brand of the policy red line, and prevent it from happening. Here, the author has to admire He Yi professional sensitivity.Where did the concept of IEO come from?
IEO comes from "LinkedIn Zhao Changpeng"
The author retrieved articles about IEO, which originated from "IEO, IFO, IAO, ICO——Token Issuance Notes" published by LinkedIn Changpeng Zhao and binance exchange on January 29, 2018.
The article points out that IEO, or initial public offering (IPO), refers to a project that is directly listed on an exchange without going through an ICO. We could see more such token launches in countries where ICOs are restricted. He also pointed out a fundamental problem with IEOs:A high percentage of digital currency is held by a small number of people (hereinafter referred to as "the minority").
The article pointed out that due to the "minority" problem, there will be two types of risks:
First, after listing on an exchange, if the price of the coin rises, then the "few people" will earn more than others. If the price of the coin falls, it means that "a few people" are selling aggressively (with the possibility of profit or stop loss), and all new investors (buyers) are at a loss.In either case, the "few" benefit at the expense of the large number of retail investors.
Second, it is easy for "a few people" to control or manipulate currency prices. In extreme cases, projects don't even have private placements, and all digital currencies are held by the project team.It can be seen that IEO is a way that the project team can control the sale price of digital currency.
"True and False" Changpeng Zhao and Binance
Earlier reports about Changpeng Zhao pointed out that most of the accounts on LinkedIn claiming to be Binance employees are fake. Hereby declare that Changpeng Zhao on LinkedIn cannot be confirmed as Changpeng Zhao himself without official confirmation, and the same goes for Binance Exchange.
Why use "true and false" Changpeng Zhao and Binance?
If one of the LinkedIn Changpeng Zhao and binance exchange accounts is real, then all the efforts He Yi made to clarify that the IEO has nothing to do with Binance will be in vain. In addition, the article "IEO, IFO, IAO, ICO--Token Issuance Notes" even stated that Binance was hesitant when listing digital currencies issued through IEO. There seems to be no good solution to the “few people” problem other than requiring these projects to provide a large amount of digital currency to the exchange in advance and sell it at a fixed price, but this solution is already essentially an ICO.
If the accounts are real, does Binance have countermeasures to protect the interests of a large number of retail investors in response to these risks during the recent series of IEOs conducted by Binance? Is it to adopt the solution that was said last year to be an ICO in essence, or is there a new and better solution?This issue not only needs to be explained to retail investors by Binance, but retail investors should think about who can protect your interests.Since IEO was questioned last year, what made Binance restart Launchpad for IEO? This question is left for the next analysis.
how to put out a fire
Although the "true and fake" accounts of Changpeng Zhao and Binance are not the core of this issue, if they are proven to be true, then all efforts will be in vain.At that time, the only way He Yi could go was to prove that the IEO concept was not first proposed by Binance personnel, that is, to find out the provable information before the publication of this article. Then come up with a new solution to solve the "minority" problem, and provide a basis for Binance to restart Launchpad for IEO. Finally, I would like to apologize to investors for forgetting that there was an IEO post. This is a bad strategy, because it not only discredits He Yi's own image, but also indirectly admits the negligence of Binance's management, which lowers the company's brand image.
If both accounts are confirmed to be false,He only needs to solve the problem of founder Zhao Changpeng's speech in an interview. With regard to the speech issue, if He Yi admits that Zhao Changpeng's speech is true, then touching the red line of the policy will not be resolved at all.The middle strategy is to push the speech into false reporting, because this completely solves the red line problem, but it offends the media.
The most likely solution is the following three steps:1. Directly deny that Binance’s recent series of currency listings are related to IEO financing. 2. A joint statement with the media that interviewed at the beginning made mistakes in reporting Changpeng Zhao’s speech on IEO. 3. Create larger public opinion topics through activities, violent news, etc., to weaken the crisis. Let us wait and see how "Fire Captain" He Yi will reverse the crisis this time.
