"Rights defenders are reporting cases in Shenzhen and Beijing, and the number of rights defenders has exceeded 100."

On July 11, a "rights defender" told Wu that the blockchain broke the news that the project they invested in was called Building Block Cloud, or BLOC for short. Of course, the statements and information provided by the rights defenders are not entirely true, and more should be threats.

A simple search shows that the aura of the BLOC project is very dazzling. Tsinghua Ph.D. team, Nobel laureate, Obama administration economist as a consultant, and the first 1EO project of OKEx, a leading exchange, also has the support of more than 120 investment institutions.

However, data shows that the current price of Block Cloud has dropped by 96% since its launch. OKEx has also been delisted. The founder of the company was replaced by a film producer, and the doctors of Tsinghua University could only quietly disappear in the wave of rights protection.

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dazzling aura

Jimu Cloud (former) CEO Ming Bank of China has an excellent background. He is a visiting scholar at Princeton University, a postdoctoral fellow at Hong Kong Polytechnic University, a Ph.D. in computer science at Tsinghua University, an overseas high-level talent of the Shenzhen Peacock Project, and a member of the Blockchain Committee of the China Computer Federation.

But in February 2020, Cumulus Cloud announced that the former CMO Nathan Leung would serve as CEO. No information about this Nathan Leung can be found on the Internet, and the LinkedIn status of a person with the same name shows that he has worked as a film producer.

Yang Shu, the largest individual shareholder of Block Cloud, is also a Ph.D. in the Department of Computer Science of Tsinghua University, a visiting scholar at Case Western Reserve University, and the founder of Wudaokou Life.com. Pan Dai, the COO of Block Cloud, is a master of information security department of Peking University. He once participated in the information planning of Beijing Future Science and Technology City as a core member.

The consultants are even more powerful, with the Nobel laureate Oliver Hart as the economic consultant, Obama White House economist Hoan Soo Lee as the chief economist and other top scientist consultants, this level of endorsement is unique in the Chinese project.

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(The picture is from 31 degrees north latitude)

Its technical vision is also very ambitious. They want a new generation of TCP/IP based on blockchain technology to upgrade and transform the existing Internet, and provide better dynamics, credibility, incentives, security, and security for the application layer. Fairness and scalability support.

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The collapsed truth

The collapse must have been caused by a problem in a certain link, but who cut the leeks is still a cloud of fog.

Platform side: Rights defenders have prepared a lot of information, the most impressive of which is that OKEx is doing everything possible to promote this project. The CEO and CSO have repeatedly dispatched platforms, and even set up a large number of linkages with OKB. After all, this is the first 1EO in which OK competes with Binance and Huobi. It is said that many internal employees of OK have been locked up because of buying Block Cloud. From a common sense point of view, OK has no reason to ruin its own brand because of a project.

Of course, as a platform side, OKEx has no experience in the first 1EO project, and it is certain that the market value management and guidance and control are not in place, which is also an important reason for such a bitter fruit.

Project side: Wu said that blockchain query, unlike most projects that have collapsed, the background of the team of Dr. Tsinghua, the founder of this project, is indeed true. Several investors who participated in the due diligence also told Wu that the blockchain, the background of the project founder, and the technical level of the project did not find any problems during the due diligence. As for the so-called Nobel Prize consultants and Obama economists, they did not reply to my confirmation email.

Taking a step back, with the background of Tsinghua’s computer doctoral team, joining Ant Financial Services/Toutiao, you can easily get tens of millions or hundreds of millions. The worst thing is to do an AI project, and there are many investors rushing to give money. Why bother to ruin his job because of cutting leeks, and end up hiding in Tibet for the rest of his life. Wu said that the blockchain believes that the platform and the project party have no strong subjective reasons to cut leeks.

After investigating the platform and investors, Wu said that the blockchain has the following conclusions:

First, all parties really wanted to do a good job of this project, but due to lack of experience and excessive marketing efforts, the value of the currency was pulled to more than 20 times when it went online, far exceeding its actual value. Block Cloud began to collapse violently from June to July 2019. At this time, the currency circle ushered in a small bull market, and the price of Bitcoin rose to 13,000 US dollars, which shows that the problems of Block Cloud itself offset the positive factors brought by the market.

Second, the lock-up mechanism of the project party is poorly designed. A total of 7 billion tokens are in circulation. Of the 3 billion raised, 475 million of the early contributors (incubation) and private equity rounds and proof of care rounds can be released after being listed on the exchange, not to mention the remaining 500 million With the release of 1EO, we see that the current market circulation is only 665 million.

Due to the high starting point and the large amount of cash out, the project party’s repeated attempts to pull the market became very weak, and then lacked funds, the team was no longer able to make the market, and finally collapsed.

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(The fundraising situation comes from the TokenInsight report)

Finally, a very important point is that the team has no experience in the currency circle at all, and Genesis Capital and OKEx have not carried out sufficient control. The team of several Tsinghua doctors used to work on smart hardware. The original smart hardware platform was also called "Jumu Cloud", but it was very unsuccessful. They hurriedly entered the currency circle with their halos, and finally ended up with chicken feathers all over the place.

The tragedy of the collapse of the Block Cloud is largely due to the team's inexperience, high expectations, and failure to make reasonable market-making. Similar phenomena are actually everywhere. The difference is that some large institutions have the strength to adjust people's expectations when the price stabilizes, and cooperate with the development progress, application scenarios, and market enthusiasm to carry out market-making. But it doesn’t seem surprising that Jimuyun, a project surrounded by a pack of wolves, a team of PhDs in science and engineering, and without any currency/financial background, ended up in such a situation.