Bitgogo puts aside "compulsory financial management" and finds it difficult to solve the financial dilemma
Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: Hoho, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
When 2019 was about to end in 6 days, the digital asset trading platform Bitgogo froze users’ assets for 180 days. Some media said that this exchange has created a "soft run era" in the currency circle.
Honeycomb Finance found that the official Twitter and Telegram of the platform have been out of service for several days. Although the founder Li Ming clarified the "rumours of running away" at the first time, there are still investors who decide to withdraw the currency assets placed on the platform.
Another layer of Li Ming's identity is the initiator of the digital currency bank notes. At the beginning of 2014, the price of silver notes was stable at around two yuan. Later, the Yinpiaocoin team also released a product called "Yinyuanbao". Like Yinpiaocoin, both coins can be freely bought and sold in the secondary market.
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Compulsory financial management is accused of "soft run"
"For several years of currency speculation, I have experienced exchange downtime, being stolen, and going to sea. It is the first time I heard that the exchange forced the lock-up of financial management. It is really hard to guard against. It is unheard of..." At 3 pm on December 25, 2019, a Users lamented so much on the ChainNode forum.
Two hours ago, a screenshot of the exchange's "forced freezing of user assets" was circulated in various communities in the currency circle. The screenshot information shows that this is an announcement issued by the Bitgogo trading platform website at 11 am, and the website domain name is reserved in the screenshot.
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Announcement on Bitgogo Freezing User Assets
What is puzzling is the content of its announcement, "Temporarily freeze some user assets (including BTC, ETH, EOS, LTC, BCH, BSV, ETC and USDT) for 180 days and 20% annualized income for financial management, 180 days After the expiration, the exchange will unlock the user’s assets and pay the wealth management income.” As for the implementation reason, Bitgogo explained, “In view of the current market fluctuations and maintaining the stable development of the exchange, Bitgogo considers the security of user assets.”
On the same day, the Bitgogo platform currency GOT (Bitgo Token) fell from $0.048 to $0.047, a single-day drop of 2%. Since the platform did not explain the scope of locked users, many people interpreted it as a mandatory lock notice for all site users.
For a while, negative comments such as "The robber's style is worse than robbing", "Is this exchange funny?" appeared on major social platforms. Some media said that Bitgogo has created a "soft run era" in the currency circle.
In this regard, a person familiar with the matter said on social media, "This is because Bitgogo deleted the announcement." Some media provided four screenshots from different mobile phones of different users in one go to prove that the above announcement had appeared on the Bitgogo official website.
On December 27, Honeycomb Finance emailed Bitgogo officials for verification, but as of press time, they have not received a reply. Li Ming, the founder of Bitgogo, made a clarification in Moments. He said that it was a rumor that Bitgogo froze financial information on the Internet, and he did not say whether Bitgogo had issued the above-mentioned lock-up announcement.
Subsequently, Honeycomb Finance got in touch with the staff of Bitgogo as a user, and the other party said that the current platform is operating well. Like Li Ming, the other party refused to give a clear answer on whether Bitgogo had issued a lock-up announcement.
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The assets of the transparent wallet are less than 20,000 US dollars
The name of Bitgogo may be a bit unfamiliar to most investors, and there is little news about Bitgogo’s voice on public channels on the Internet. The "compulsory financial announcement incident" has focused the attention of the outside world on this little-known platform.
Honeycomb Finance found that Bitgogo’s official Twitter and Telegram have been out of service for several days. The last message on its twitter was in January last year.
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The last message on Bitgogo’s official Twitter was in January 2019
This wave of operations by Bitgogo blows up the old account of rights protection 3 months ago, which also involves restrictions on withdrawals. Titled "Exposure! BITGOGO Cao Cao shouted a single DPT coin and was cheated into locking the warehouse, what should I do if I can’t withdraw money? "The article shows that in September this year, a teacher named "Cao Cao" took advantage of high returns to lure investors to deposit funds on Bitgogo, but refused to withdraw assets after losses.
The Chinese name of DPT is "Doctor Odaily", which is a token of an organization called "Galaxy Chain Education Ecology". In September this year, DPT landed on the Bitgogo exchange. It has fallen by 95% from the high point.
Up to now, Bitgogo has launched about 60 trading pairs, among which the currency with the highest 24-hour turnover is Bitcoin, followed by mainstream currencies such as Ethereum and BCH. According to statistics from the data analysis website MyToken, the 24-hour transaction volume of Bitgogo is 120 million US dollars.
From the perspective of trading volume alone, Bitgogo's volume is comparable to that of established exchanges such as Poloniex and Coinbase, but its asset status does not seem to match its own trading volume.
On December 26, BitUniverse and PeckShield Paidun tracked the assets of the Bitgogo exchange and found that the assets in the transparent wallet on the platform account were less than 20,000 US dollars. In September of this year, the highest digital assets on Bitgogo’s account was 350,000 US dollars, which means that the current public assets on the platform have shrunk by 94% from its peak value, which has exacerbated the market’s suspicion of its escape.
Even with an asset peak of $350,000, Bitgogo's asset volume is far different from mainstream exchanges in the currency circle. According to analysis by industry insiders, the difficulty in operating conditions may be the reason why this small platform tried to lock up traffic by locking positions.
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The founder's investment and entrepreneurship "exploded" many times
As the "soft run" incident fermented, the operation team behind Bitgogo also attracted the attention of the outside world.
According to an exclusive interview with "Beep News" in September this year, Li Ming, who entered the circle in 2011, can be called an old man in the currency circle. In the past 8 years, Li Ming has sold mining machines, done quantitative transactions, and operated wallets, social platforms, exchanges, etc. It can be said that almost all subdivisions of the entire blockchain industry have been done. "For Li Ming, he has stepped on all the pitfalls that should be stepped on, and he has also made the money that should be made."
At the earliest time, Li Ming earned the first bucket of gold after entering the currency circle by selling FPGA mining machines. FPGA mining machines use FPGA chips as the core of computing power. They are one of the early mining machines of Bitcoin. They first appeared at the end of 2011. But it was gradually replaced by ASIC mining machines and GPU mining machines. At that time, Li Ming, who hoarded tens of thousands of FPGA mining machines, also encountered "Waterloo".
After failing to invest in mining machines, Li Ming launched a digital currency called Yinbicoin at the end of 2013. The total number of issued coins (YPCoin) was 84 million. At that time, some media even rendered it as "China's Bitcoin". At that time, it was also the starting point of altcoins in the domestic digital currency market.
According to the entry information of Baidu Encyclopedia "Yinpiaocoin", Yinpiaocoin is a digital currency similar to Bitcoin based on "peer-to-peer" (peer-to-peer) technology, which can help users realize instant payment without handling fees. Anyone in the world is developed by the professional team of Hangzhou Shuaike Technology. Li Ming and the founder of Hangzhou Shuaike Technology, the holder of the "BITGOGO" trademark, both appeared in the above-mentioned information column.
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Baidu Encyclopedia "Silver Note Coin" entry information
At the beginning of 2014, according to the "IT168 website" report, before the online exchange, the offline transaction price of silver bill coins was stable at around two yuan, but as the silver bill coins were opened for trading in the secondary market, their prices fell all the way. The article quoted the then "CEO of Hangzhou Shuaike Technology Co., Ltd. Mr. Li" as saying: "In the future, we will launch more applications based on banknote coins, develop banknote coin mobile wallets, negotiate shopping malls to support banknote coin payments, etc., so that banks can The coins landed."
