3. Digital currency fund gray sneak: You see the next bull market is late; 4. Coin circle nobility new hunting grounds;
1. Gold regains the throne of the safe haven from Bitcoin!
According to the micro-network news, the trade war between China and the United States was about to take place. The situation in the Middle East was increasingly strained by the Syrian issue, which prompted the price of gold to leap for more than two months. Analysts pointedly pointed out that in the current wave, gold once again avoided the The throne of a dangerous asset, recaptured from Bitcoin.
CNBC reported on the 12th that Boris Schlossberg, head of the foreign exchange strategy department of BK Asset Management, said that gold has taken the throne of Bitcoin from the hedging king. He is currently standing in the buyer, and he likes the subject very much.
Chris Verrone, chief technology analyst at Strategas Research Partners, said that the price of gold has actually hit a 4-5 year high. If the back-pressure of 1,375 U.S. dollars, which has been impossible to break through for years, will be able to stand up, it will be a lot more favorable to gold prices. .
The price of gold has not touched 1,375 U.S. dollars since the middle of 2016. However, Verrone said that the price of gold has continued to push up in recent months, and it is estimated that the momentum should be continued and the anti-pressure should be broken through in one breath. It is worth noting that in the past two years, The gold price shows a trend that is higher than the bottom, and it successfully withstands the selling pressure. This means that the counter-pressure can eventually break through.
2. Mining rivers and lakes: The war has quietly ended. China has scored over 90% of its power.
To the outside world, the mining pool is a secretive river of counts. With the power of calculations, it has a place in this river. This is a simple and crude war of life and death. Only a horizontal one is erected. The winner monopolizes the market. The losers quickly exited.
However, when the vast majority of people are still waiting to see, the brutal war in the mining lakes and lakes has quietly ended.
'Deep Chain Finance Original'
Wen Liangchen
The war is over
'It's dead, um.' said Chen Weizhi, his tone was a bit heavier, but there was no surprise.
In front of him, there is only one manometer on the web page. There are no design elements, and black letters on white. This is a small pool that Chen Weizhi had connected to a few months ago. Now the calculations of several digital currencies are all displayed as '0'. '.
'This is nothing, the mine pool can survive with its power, and no force can die at any moment. This is a world entirely relying on power.' said Chen Weizhi.
He deliberately blocked the IP address of that page. This is because small mines are most afraid of DDoS attacks. All open mining pools are generally subjected to such attacks: A large number of legitimate requests consume a lot of network resources to reach the network. Purpose. So the IP address is not open to the public.
When Chen Weizhi discovered that the small mining pool had silently withdrew from 'Jiang Hu', it was once ranked in the top four of the bitcoin mining pool's entire network, and the BW.COM (Chinese currency) mining pool from China was falling little by little.
This is a mining pool that used to have a fairly high position in the industry. However, on a real-time “pool share” page, in two days, the net computing power dropped from over 400 PH/s to around 175PH/s. Only about 0.6% share.
'Of such a calculation, it's almost negligible. It's hard to keep a steady 2% or more share of the mining pool.' A founder of a giant mining pool said quickly after reading the latest bitcoin's power share table.
The mining pool has mastered the rules and secrets of digital currency. It has also been a key point for the industry giants to attack cities. On March 30th, the Digital Currency Exchange's Huogong.com announced the opening of the Huoyan Mining Pool.
A number of miners told Deep Chain Finance (ID: deepchain) that the layout of the coin pool is a strategic need. They had previously laid out the mine and had their own mining machine of a certain scale. 'This is a giant game, small and medium-sized mines. The pool is only envious.'
Wang Lei (a pseudonym) is the representative of small and medium-sized mine pool owners. When the currency market peaked in the second half of last year, the giants had a relatively stable ranking through competition. This situation made him feel that the pattern is a foregone conclusion. In the world of speaking, small mineral pools are basically unable to compete.' He chose to withdraw.
This is a piece of meat that stands at the top of the food chain. Even if there was a famous mining pool, many of them have long since disappeared and collapsed. That is, Chen Weizhi's mouth is 'dead'.
Wang Lei summed up his position in one sentence: 'For us (small and medium pools), the war is over.'
The era of individual mining has long since come to an end
On the real-time rolling mining pool share page, the calculation force, the proportion, the number of blocks, and new data are available for each refresh.
Intensive digital changes and scrolls have caused Chen Weizhi, who is currently looking for a miner in various parts of the country, to feel anxious. There are mining machines that can have a lot of power. After experiencing two mine accidents in 2014 and 2018, there are not many things left in his hands. Mine machine hosting is a new path that he can find to increase manpower.
'This was a simple 'Jianghu' at first. 'Chen Weizhi said, opening the browser quickly, entering the code of an architectural mine pool.
There was no noise in the coffee shop. Chen Weizhi wore an open zipper jacket and put on a worn black backpack.
He had just returned from a mine a thousand miles away. He was told that he had to talk about the mine pool. This was a topic that made him excited. Therefore, it was easy and easy to wait until he came home.
During the four-year miner's career, he had done two mine pits, and they all ended in failure after a short period of operation.
He likened the pool to the 'team'. 'The pool pooled many miners together to calculate a block of digital currency encryption. After victory, they gave us 'parts'. 'When it comes to 'delivery', he picks up.
The speed of the cafe is a bit slow, and Chen Weizhi speaks almost as fast as a hand. Waiting for him to finish a brief history of the mineral pool that he understands before he jumps out of the page showing the miner force chart, a simple but functional private mine. The pool is set up.
'At the beginning, it's as simple as that. Just enter a string of code to build a mine. There are hundreds of early miners, and thousands of mines can make a mine, including myself. 'He said.
However, after the difficulty, no outside miners join in, and there is not enough power to cope with the increasing number of digitally encrypted blocks. The mine pool is empty shelves.
Chen Weizhi abandoned the work in the traditional financial field in 2014, following the numerous people with wealth dreams into the Bitcoin Bureau, when Bitcoin rose.
In the second half of 2014, the price of coins continued to decline. By the beginning of 2015, it had fallen to US$200. But at the same time, more and more miners have joined, and Bitcoin’s whole network has soared.
This means that the end of the era when one could use a home computer to dig up Bitcoin. Digital currency based on blockchain technology is unique in its calculation rules. On average, one block is dug every 10 minutes, and each block is 12.5 pieces. Bitcoin. In order to maintain the block rate, it increases the calculation difficulty every 13~20 days.
On January 27, 2009, when Bitcoin's first digital encryption block was dug up, the average computational power of a block was 4 MH/s.
By February 2010, as the number of miners increased, its power increased fivefold.
Because there are more and more mining machines, the difficulty of mining increases, and the time it takes for a miner to dig up a bitcoin increases. The miner is eventually encouraged to set up a mine pool and connect multiple mining machines to mine. The image of the industry is called 'Group Daguai'.
In May 2011, the world’s first Bitcoin mining pool appeared. Its name is Eligius.
Now, the computational power of a bitcoin-encrypted block is as high as 25 EH/s. There are more than 2 million mining machines in the world mining in more than 20 mining pools.
Of these, 17 are from China. About 90% of the calculations are held in the hands of 8 large mining pools. The situation of Ethereum and Litecoin mining pools is also similar.
However, the price of coins continued to drop, and the income of miners across the entire network dropped directly. In the second half of 2014, the currency fell by more than 90% at most. 'One day, a one-day electricity bill is lost, almost the same as that of 'Ling Chi'. This is what Chen Weizhi said.
This was his first experience of the mine pool. The team had not yet been formed and died of a 'mining disaster'. The so-called 'mining disaster' was when the miners’ mining income did not pay for the electricity.
The second 'mining disaster' was in mid-2017 when the currency price was back. The soaring pace made it impossible for the people outside to think about the risks behind it. In view of this, the bitcoin calculations have risen again to a new height. I want to 'team up and fight strangers'.
This time, he specifically spent more than 10,000 on hiring network engineers, but the mine pool was up and the rivers and lakes were not the original rivers and lakes.
Small pool that will die at any time
'The mining pool giant has fixed, small mine pool is difficult to get a share from it.' This is the consensus of Chen Weizhi and Wang Lei.
Miners like Chen Weizhi who want to build a private mine pool are still everywhere, but the calculation power is still soaring. It is difficult to dig out a block with thousands of miners and they will 'dead' at any time.
'Stable' is a gold medal for the mining pool to attract business. 'Stable means to dig out bitcoins on an average daily basis and bring a steady return to miners. 'Now, the top 10 pools are available every day. Give miners a fee of 0.14~0.2BTC.
Compared with the stability of the giants, the small mine pool will not be able to dig for Bitcoin at any time and it will not be profitable. At this moment, the miners will flow to other mining pools at any time.
On April 9, Deep Chain Finance (ID: deepchain) opened a mining pool page named ANOMP. It shows that the calculation power of all three digital currencies is '0'.
"Dying, some time ago, there was still a force." Chen Weizhi said: 'Now we can only follow the big mine pool' team Daguai'.'
For this scene, Wang Lei felt deeply.
In the second half of 2017, in the culmination of the digital currency boom, Wang Lei chose to sell more than 1,000 of his own miners, while turning off their medium-sized mine pools.
And one of his friends who also owns a medium-sized mine pool believes that domestic costs are too high and the benefits are low. They chose to mine in Switzerland and build a mine pool.
'Going to Scandinavia is a trend for miners and mines nowadays. There are not many places in the world where the cost is low and the legal system is sound.' Wang Lei said.
He thought that there was a risk that he would choose to sell at the time, but looking at the situation at the moment, he felt glad.
'After experiencing the shocks of 2013 and 2014, we will look at those things more bluntly. It can be said that the small players basically don't have a lot of opportunities, so we chose to throw away at a vertex.'
Today, Wang Lei only participates in some blockchain investment projects and no longer mines mines and mines.
China's mine pool accounts for more than 90% of the total network
The real-time statistics page of BTC.COM's official website shows a slight change in the digital moments that reflect computational power. The market share of BTC.COM, ranked first, constantly fluctuates around 27%, but far exceeds the second place by 10%.
The slightest fluctuations in the top 5 may not affect their respective ranking within one day, but within 3 days, ranking changes may occur.
The 10th-ranked mine pool may have disappeared from the qualifying table one day due to lack of power.
'This is the giant's competition. It is still very fierce.' said a mining pool investor.
When the competition between the giants, the level of income will become the key to a decisive victory.
Mao Shixing, the founder of F2Pool, will send a 'big hit' in his circle of friends! 151% of the mining revenue is in the fishpond! ' Zhu Biao who was still at BTC.COM also made 'BTC.COM' today's gains at around the same time. To go against the sky, more than 160%!'
Later, BTC.COM's computing power from 0 to nearly 30% of the entire network, long-term ranked first.
Now, the whole network shows 20 bitcoin mining pools. The mining pools from China account for more than 90% of the total network's computing power.
As of 3 pm on April 12th, the top three were all from China, namely BTC.com (accounting for 26.42%), Ant Mine Pool (16.98%) and BTC.TOP (14.47%); top 10 mines Only 1 pool is from abroad.
'China is now occupying more than 90% of the global mining industry's share. This one is because the Chinese are really hardworking and the second is because there are cheap power supplies in some places in China. ' In an office building in Wangjing, Beijing, BTC. A former head of COM told Deep-Finance.
He believes that the vitality of the mine pool comes from its own computing power. The more the power, the stronger the power. The power is provided by the miners, so the mine pool can be said to serve the miners.
'You can attract and maintain a good miner's ability to go on. Miners can freely choose mine pools. Your profits are high, and your website runs smoothly. It is easy to attract miners.'
But Chen Weizhi and Wang Lei stressed that this is precisely the most difficult place to make a mine.
On the other hand, all three people, including the investor Zhang Yiyun after the mine 95, felt that they could not compare with BTC.COM. 'People are born with 'Golden spoon'.
The BTC.COM mine pool was established in September 2016. It is operated by Bitland's operations and technical personnel. Bitland is the world's largest mining machine manufacturer. It has already created two mining giants, including BTC.COM and ants. Mine pool.
'Like a bit of the mainland, the power is not their own, they need to test the machine before selling the machine there is no problem, the process of testing is the mining process.' Zhang Yi Yun said.
'But the outside world may not know that, when BTC.COM was just formed, Bitland did not directly provide us with resources. In the early days, we were all looking for miners everywhere, and slowly accumulated. The core point of operating a mine pool is that the website is easy to use. Then you can bring stability to the miners and be higher than their peers. "A former head of BTC.COM revealed.
The noteworthy change is that in the early years of 2015, the pattern of the mine pools was completely different. F2Pool (Fish Pond), BitFury, BTCC and BW.COM (Currency Network) accounted for more than 90% of the market share.
Today, F2Pool accounted for 10.06%, ranking fourth. BTCC accounted for 3.77%, ranking eighth. BitFury accounted for 1.26%, ranking 10th. BW.COM accounted for 0.63%, ranked 14th.
BW.COM currency network was founded by Hua Songxiu. Today's calculation power is 173.68.86PH/s. Only one bitcoin is dug in 24 hours.
"You can count this power, and tomorrow you can't guarantee that Bitcoin will be successfully unearthed. In that case, if the miners have no benefit, they will naturally benefit from a stable pool. Therefore, they are basically negligible. ' A pool Community analysis.
In the currency circle there is a saying, 'coin circle day, human year'.
According to Chen Weizhi, the mines closest to the digital currency may be even worse. The once famous mines, such as GHash.io, HaoBTC, and Eligius, have long since disappeared.
Only the meat that eats survives
BTC.COM has now occupied the top position for the pool for a long time. Zhang Yiyun, who owns tens of thousands of mines but has never built his own mine pool, called the top few 'out of the box'. Mine pool'.
'I have experienced difficult times.' Zhang Yiyun said.
When Chen Weizhi collapsed in the 'Mining Disaster' in 2014, Mao Shixing, the founder of F2Pool, also planned to build a mine pool. Mao Shixing was codenamed 'Fish God' in the mine. In that time, he tried to assemble a mining machine by himself. Where to find cheap electricity prices for mining.
With bitcoin, Ethereum continued to increase its computing power. He also set about building his own mine pool.
'In the beginning he went to finance, it happened to be in a bear market. Later he heard that he was very bitter. He went to an investor friend but he was rejected. ' A miner said.
But in the end, for a long time, the other mining pools died. He survived and became China's first mineral pool.
At BTC.COM, the director of operations, Zhu Wei, has been looking at the ranking of the force ranking table. Although he was leaning back on Bitland at the start-up, the miners brought him along with his colleagues. The big users are all mines. Pool scramble for the object, 'In the beginning to expand customers, you want to fish ponds, ants, Bit Continental grab customers.'
During the Spring Festival, BTC.COM finished the year-end inventory. Zhu Xi said: 'Do you still remember? On June 17th, the World Miners' Congress, BTC.COM told the world that there are two types of mining pools, which cannot be the same day?'
Initially, BTC.COM invented a new mining model, FPPS, in order to expand its own share of computing power. This increased the direct benefit of miners by an average of 6%, and BTC.COM’s share from 3 months ago. % increases to 26%. The meaning of 'incomprehensible' is that BTC.COM's earnings are now different from other mines.
Nowadays, Mao Shih-hwa, who has experienced difficult financing, can already easily say the failures and setbacks he had experienced during his entrepreneurial career, or sit at the Shangri-La Resort and Spa in Sanya.
Faced with this situation, Zhang Yiyun said to deep chain finance (ID: deepchain): 'We wait and see, but we don't need to join them. We were originally their customers, and then we built the mine pool ourselves. So what do I do now? The miner did not want to go to the mine pool. '
However, as an investor in the blockchain field, he had tried to refer to a mining pool.
When meeting Zhu Xi once, he asked: 'Zhu Zong, BTC.COM needs no investment?'
Zhu Xi directly back: 'No need.'
"I really want to vote for them. I guess we can't afford it either, either." Zhang Yiyun later said. They started making money almost immediately after they were established. There is no shortage of funds.
Like Zhang Yiyun, another miner investor told Deep-Finance that 'I haven't heard of which pool needs financing.'
The Game of Interests and Feelings
Chen Weizhi misses the 2014 mine ring. Although he himself was badly attacked by the mine, the construction of the mine pool eventually disappeared. He was always an optimistic miner.
'The order is simple, it's very beautiful.' In the cafe where people come and go, Chen Weizhi looked up and thought for a few seconds and said these two words.
The hallmark event that evoked his memories was that Ghash.io's calculations approached 51% and he volunteered to evacuate the miners.
On the first day of June 2014, on a bitcoin forum, the mining circle that had been safely mined for several years suddenly experienced a commotion. The miners found that the hard-to-find Bitcoin mining pool GHash.io would soon exceed 51%. .
Knowing that there is a famous question, 'How to kill bitcoin?' One of the most attention-provoking methods is '51% force attack principle'.
That is, when the attacker's power exceeds 51% of the total power, he can tamper with the block data, create double flowers, and cause people's trust in Bitcoin to burst.
In the past few days, at the Babbit Forum, the miners discussed and the panic continued to spread. In a post titled “GHash.io: What do you want to do?!”, miners said that the GHash.io mine pool has recently become a cryptocurrency industry. The swirl center.
In January 2014, due to excessive concentration of the mine pool, it even triggered a period of bitcoin price fall. Finally, under the strong appeal of the community, some miners began to withdraw from the GHash.io mine pool, only to quell the ups and downs.
GHash.io later responded: 'Nakamoto Satoshi and numerous predecessors, using wisdom and technology, brought us a glimmer of hope. But this road needs all of us to continue and do our best to defend those freedoms. The honesty effect. As far as 51% of bitcoin is concerned, the ultimate goal of the game is to stay at the level of marketization of hardware (chip, network transmission) technology - the more marketable we are, we are far from the honest block. The closer the chain is. On the contrary, the more power monopoly, the farther we are away from it. '
On June 14, 2014, GHash.io issued the 'Prevention of Over 51% of the Precautionary Measures and Take Preventive Measures' to actively evacuate miners from outside and allow their own miners to mine in other mining pools.
'Our investors and participants intend to protect and develop Bitcoin, and absolutely do not harm or damage the bitcoin ecosystem in any way. We never and never will participate in any 51% attacks or spend Bitcoin doubles. '
“This is the early geek circle. Everyone is very respectful and decentralized. When they may violate the decentralization principle, they will make decisions spontaneously. Unlike today, if they exceed 51%, it is estimated that they will continue.” Busy growth. Not the same thing. 'On April 8th, the founder of F2Pool (fish pond) Mao Shih-hsing said to ID (deepchain). Now he still misses the atmosphere of that year.
Unfortunately, GHash.io later quietly closed down.
The history of the fish pond was also more than 31%. Mao Shih-hsing said that measures were taken at the time to 'increase fees and allow miners to go to other pools.'
According to Zhu Xi, Director of Operations at BTC.COM, it is unlikely that 51% of the force will attack this kind of thing. First, the former pool giants will not merge. Second, if this possibility arises, the miners will withdraw. Will call for preventing the occurrence of monopoly.
Feelings are the things that Chen Weizhi and Zhang Yiyun thought were once in the mine pool geek circle.
'Godfish' Mao Shixing also misses it, 'It's beautiful.' He said. Deep-chained
3. Digital currency fund gray sneak: It is too late to see the next bull market;
Text / Hot Spring
A large number of digital currency funds are emerging in China.
This was unprecedented in the 20 years of venture capital investment in China. They were either hatched by traditional angels, VCs or PEs, or they were new institutions that had just been established. They did not raise dollars, renminbi, etc., but raised digital currencies. Invest in the private equity phase of the blockchain project and then withdraw after the ICOs for these projects. Most of the early establishments were '**capital', and later establishments were more directly named '**Fund' in English. .
What attracts them is a very high rate of return. Eurekahedge, an independent hedge fund data provider, tracked 9 digital currency hedge funds with $1 billion of scale assets. The rate of return for digital currency hedge funds in 2017 was 1477.85%. In China, distributed capital under the umbrella of the auto parts industry giant Wanxiang Group is one of the earliest investment institutions for investment blockchain projects. In December 2017, distributed capital hatched the digital currency fund BKFUND. By 2018 In January, BKFUND's dollar return rate was 170%. Even in the extremely adverse market environment in March, BKFUND's return rate in US dollars still has a return of more than 10%, while the return on ETH (Ether) Up to 62%.
These return rates almost outperformed all existing investment and financing channels. In China, the average return on equity funds in 2017 was 13%, and the return on the most bullish equity funds in 2017 was 68%. Even for many years, Chinese The real estate whose assets depended on hedging and value added also fell out of fashion. In the first half of 2017, domestic prices in a few cities experienced large increases, with the most significant increase in urban growth rate reaching 50%. In the second half of the year, it was controlled by policies and began to fall slightly. In recent years, prices in most cities have not risen.
Nowadays, the state of existence of these institutions appears to be somewhat gray. They raise digital currencies and bypass the regulations governing the renminbi fund. The way they retreat is through registered foreign currency exchanges. To avoid risks, they There are many institutions that choose to register in the Cayman Islands.
However, investing in digital currency, the liquidity exhibited by this approach, and even the rights it contains, may be changing quietly and deeply affecting venture capital investment.
Test Water Digital Currency Fund
The birth of digital currency funds in China is the hottest time in the second half of 2017. This point, look at the time when most of these funds were established.
Can not be avoided, this was driven by the hot ICO. The industry is aware of the fact that at any time a project can be issued a lot of money, or even 'hundred times'.
Investment institutions have emerged in all directions. According to Netease Technology, the new investment community consists of roughly three categories of people: First, those who made money in the currency circle in the past year, including those who bought coins, exchanges, and ICO's success. The project team, etc.; followed by traditional investment institutions, including investment in the Internet sector and investment institutions in other traditional industries; in addition, there are investment institutions that bring in capital from other industries, and insiders told Netease Technology that there are even Many real estate companies and coal owners are in the shadow. One insider told Netease Technology that the first type of investors accounted for a considerable amount. According to Netease Technology, in the past six months, the currency circles have made more or less money. There are not a few who achieve financial freedom. Here, the standard of financial freedom is that the value of the digital currency in the hands is more than one billion yuan.
Don't think that these capitals are all unknown small venture capitals. 'Mainstream investment institutions have already entered the market.' Song Zhiyi, director of investment and investment of Beijing North, told Netease Technology, 'It's just they don't publicize it.' From his understanding, the mainstream venture capital agencies, About 20% of angels, VCs, and PEs have come into the game, like real money fund, Sequoia Capital, Longling Capital (founded by Cai Wensheng), Xue Manzi, etc. are all related to many blockchain projects. He concluded that he can read and understand Investors in blockchain projects need to have a certain background in computers or the Internet. Investors in financial backgrounds generally do not understand these projects, and most of them are still in a wait-and-see state.
However, more traditional investment institutions are in action. 氘氚 氘氚投投 was established in 2015. At that time, it was an opportunity to invest in the area of 'mass entrepreneurship, innovation,' and was also a well-known blockchain financial project. One of the investment institutions. Bai Ping, a partner in Venture Capital, told Netease Technology that they are planning to build a new digital currency fund and focus on investment in blockchain projects. 'Now changes to the blockchain project financing model also impact the traditional The investment institution, the project started directly after the private placement of the birth was raised, VC, PE are bypassed. If you do not keep up with the trend, this matter has nothing to do with us. ' Bai Ping told Netease Technology, 氘氚 氘氚 投 investment block The development prospects of the chain, many blockchain projects were born as international businesses, and they have more investment value than the Internet. The reason why they have to raise a new fund specifically is because the different funders use the funds. In addition, we need a more professional team to look at the project. 'We are not afraid of the impact of new investment institutions. The impact of the blockchain on most industries is not the industry itself. More specifically, it should be This is a part of the industry. The transfer of value can be more efficient and complete. As a VC institution, the advantage lies in a more professional and also a certain degree of resource advantage. It has good guidance and assistance for the project.
Another senior industry insider told Netease Technology that he now feels that the traditional investment institutions have a very strong 'missing anxiety disorder', and many investors come to him to supplement their knowledge.
Capital's enthusiasm, can be seen from the domain name store founder Dai Yue's business. Dave Yue entered the domain name investment industry in 2004, the domain name business has done its best, he had acquired and sold many top high-value domain names. However, 2018 In the first three months, DaYi's domain name sales record was completely refreshed. The domain name revenue he sold to the blockchain domain exceeded the total revenue of all domain names he sold before 2018. After the Spring Festival, his future capital (Future) The Fund, abbreviated as 'FFund', was formally established. He also invested in the tide of digital currency investment.
With regard to NetEase's interviews and the exposure of experienced investors, it is conservative to estimate that the number of these institutions is currently around 100. However, there are also investors who believe that there are more than this number. Every day new institutions are born. They are active in various forums, parties, salons and dinners, looking for investment opportunities.
High liquidity
Raising digital currency, not legal currency, brings about a systematic change in the way digital currency funds invest.
The most significant change is the ultra-high liquidity brought by this type of investment, which makes them superior to traditional equity investment in many aspects. This is reflected in the speed, scope, and flexibility of the flow of funds.
In terms of speed, ChuangChi CEO CEO Feng Chih concluded that: 'Traditional venture capital investment, from input to withdrawal, is as short as three to five years but as long as seven or eight years. However, digital currency funds invest in blockchain projects and exit through ICO. Usually it takes only a few months. The time spent is almost one-tenth of the traditional way. ' This means that for the same amount of money, traditional venture capital can only make money once in three or five years, but the digital currency fund has three or five years You can earn 10 times of money, and the capital utilization efficiency is clear at a glance.
In terms of scope, Xu Chaoyi, the founding managing partner of BKFUND, gave an example to NetEase.com: 'The securities are generally traded only on the designated exchanges; Equity is usually traded off-site, or traded after the IPO; transactions in digital currencies have no time. With space constraints, cross-border and cross-border trades can be conducted anywhere and anytime. In terms of raising funds, digital money funds can raise funds globally.
In terms of flexibility, the 'revolutionary' right-of-the-money approach adopted by digital currency investment has greatly promoted the flow of equity. Xu Chaoyi explained to Netease Technology that traditional risk investment is equity investment, and equity investment in a project is generally It is not easy to transfer. However, when you invest in digital currency, you get Token, and Token can be easily traded.
This solves a major pain point of traditional equity investment. This point, the potential shares founder Li Gangqiang has a special right to speak. The main business of potential shares is to provide services for the private company to transfer the shares of non-listed companies. In the past, it was relatively complicated to complete the transfer. Only two or four weeks are required for the change of the business process. It will take three or four months to complete the process of connecting the buyer and the seller before and after the equity transfer. Due diligence process etc. Li Gangqiang tells Netease Technology, Chinese venture capitalists and entrepreneurs The people are facing huge equity circulation problems. There are 14,000 active investment institutions in China and more than 10,000 angel investors. There are more than 10,000 investment cases each year. The investment amount is between 1 trillion and 2 trillion, but the annual IPO number is There are only more than 200. The long road from investment to exit is that the founders and investors are in urgent need of channels of equity circulation. The transfer of traditional stock rights is indeed a problem. This year, the potential shares launched the Share X project, applying blockchain technology to equity transfer. In fact, it has greatly improved efficiency.
The impact of the right to use
If taken into account for a longer period of time, Fonchi believes that a fundamental difference in the use of digital currency investment and renminbi investment is that the token obtained with digital currency is not only a type of ownership but also a right to use. In the case of equity acquired with currency investment, equity represents only one type of ownership. He believes that this will cause all investment logic to become fundamentally different.
How does this 'fundamental difference' differ? What does this difference bring? Fung Chi did not have a particularly clear answer for a while. However, there is now a well-known vision for Maotai to issue a product Token (total quantity linked to dynamic capacity) In theory, people may be more willing to hold the Token instead of the stock of Maotai. Because buying Moutai will get the Token, the more you buy, the more Token you get, and if the sales of Moutai come more The larger the Token will be, the Token will also be able to exchange Moutai. The purchase of Moutai won't get a stake in Moutai. The shares are only put there after they are purchased, etc. The value of the Token can be appreciated and it has a use value. In the future, what kind of chemical reaction will result from this difference will not be fully predictable. This is also the reason why the Token economics has been actively discussed.
For this, Song Zhiyi, director of investment and investment of Beijing North, has found some problems. He told Netease Technology how to use digital currency investment returns, and how to use equity investment returns, how convergence, has encountered a lot of practical problems. He sees To the point that Token has the right to use this feature, it may change the existing accounting system.
He explained that the company’s turnover was originally calculated using currency calculations, but now Token has the right to use, so for a specific service of a company, the user can also use Token to purchase, so that part of the company's turnover becomes a Token. Divert part of the revenue calculated by the usage currency. However, the value of Token is not in the existing statistical system. It can be converted into RMB. However, if there is no institutional guarantee, there will be many real problems. Because if Without conversion to RMB, enterprises have great benefits: First, they can avoid taxation; Second, they can reduce dividends to shareholders. Without the corresponding system support, the company's real income can be easily dealt with.
In this case, Song Zhiyi gave an example. For example, if the investor who initially invested in the currency does not assign the Token, the equivalent would be evacuated. The exit and return of the legal currency is even a question mark. , The return of investment institutions to their own contributors, how to calculate the Token's value, is also a problem.
'So, what we are currently seeing is that the existing accounting system needs corresponding changes. Otherwise, there will be many problems that cannot be solved.' Song Zhiyi expressed to NetEase.
In the future, how the use rights outside the equity will change the investment logic, and practice will give more answers.
Different investment methods
The ultra-high liquidity brings unprecedented convenience and high profits to digital currency funds, but it also brings huge challenges. The entire operation of the fund is also very different from traditional venture capital investment.
'Digital currency funds need to focus on all the elements of the entrepreneurial team from financing to listing when investing in the first round. ' Xu Chaoyi told Netease Technology that this is different from traditional venture capital institutions. They often have standard processes and protocol templates. The entire investment The process is a step-by-step process. Generally speaking, venture capital is required to accompany the company to go through the maximum five-year risk. However, unlike digital money funds, the time from input to withdrawal is very short.
"The key points to be considered will be a lot more. For example, before you thought that an investment institution needed to consider which exchange was on which project to vote, how many people were in the community, what about the code? No need to look at it. But today we need to see , Including how its code accepts, Who is its investor, etc., Investors determine market sentiment, How many people in the community, Is it true, Is it his user, Is it light speculation not to work? , similar to these should be taken into account. 'Feng Chi to Netease technology examples.
In addition, the management of the entire organization is also facing new challenges. Unlike traditional funds, funds in the blockchain sector are a blank in digital asset security, asset delivery, fundraising and internal collaboration.
For example, one big challenge is that fund managers have opportunities and possibilities for doing evil. Xu Chaoyi explained to Netease Technology that if the fund manager does not disclose certain investment operations, his own earnings may exceed the income earned by working for the organization. He gives an example. : For example, the digital currency invested in a project at the beginning of the year is equivalent to 100 million yuan, and the market value of the project at the end of the year has become 1 billion. If the fund manager does evil, he lied that he would withdraw when the project's market value was 300 million yuan. He himself can make a net profit of 700 million yuan. This is not yet the management fee paid to him by the agency. But if he reports the proceeds truthfully, he can only get a 2% management fee from the earning income, which is 18 million. 'If you do not disclose all the investment operation, it is difficult It proves that the fund manager has done no evil, so this is what needs to be supervised." Xu Chaoyi concludes.
He told Netease Technology that since there is no precedent to follow, all management practices of BKFUND are built from scratch. Among them are: how to manage wallets, how assets are mapped, what investment management processes should be, and what key points should be concerned about risk control And so on. 'For the simplest example, the average company has a balance sheet. Digital assets fluctuate so much. How do you calculate profits? How do you calculate investment returns? This is a problem.' Xu Chaoyi added.
In mid-March, distributed capital announced the establishment of the Hashgard project. It is hoped that the digital assets management experience of the previous exploration will be given to the industry. Xu Chaoyi told Netease Technology that after a period of exploration, BKFUND has completed a dozen pages of complete digital assets. The Fund Management Standardization Guidelines, or SOP (Standard Operating Procedure), standardize the fund's compliance establishment, fundraising, investment, back office management, etc., and has been open source on the gitbook website. In the future, Hashgard hopes to establish standardized management of digital asset funds worldwide. System and investor protection agreement, becoming the industry's infrastructure.
Face difficult problems
However, although there are high profits in the initial period, the investment method itself has a lot more breakthrough than the traditional one. The road to digital currency funds may not be easy.
Nowadays, the market is in a bear market. Xu Chaoyi confirmed to Netease Technology that many investment institutions in the industry are indeed losing money. 'You look at the photos that are sung everywhere in a circle of friends. It is a mechanism that is temporarily closed. It is a bear market now. There are not many things to do. Nowadays, so many blockchain meetings are idle. When the bull market, who has the time to meet every day? 'Feng Chi quipped.
The market's volatility is not yet tight, and the most important thing is that digital money funds have the difficult problems they must face.
First, in just a few weeks, Angels, VCs, PEs, and IPOs were all involved in the process of obtaining huge amounts of financing. It has passed the five-year inspection period of traditional venture investment. Can this issue stand the test? For this issue, NetEase Technology has not found a good answer. The current fact is that because of the rapidity of financing, many projects are more inclined to use this type of financing. Traditional venture capital institutions have been bypassed. This is also the case for many traditional venture capital institutions - The anxiety of the so-called 'classical internet' investors is also the reason why many traditional investment institutions' newly established digital currency funds have joined the wave. However, after the market revival, investor fears led to the current bear market. Perhaps it is also the most direct expression of this type of disapproval. After this round of ups and downs, how the market itself will adjust, I am afraid it is the key to determine the future shape.
Second, the digital currency funds may be difficult to overcome and the current financial supervision system will run in. At the moment, to whom the digital money fund is to raise funds, how to raise funds is still a matter of scrutiny. When NetEase Technology asks this question, The investor said frankly: 'This is not yet available. If strictly penetrated, this may be suspected of illegal fund raising. ' However, the regulatory authorities are also exploring the opening of equity crowdfunding pilots, and the law itself is constantly evolving. One of the scholars concerned with crowdfunding, Yang Dong, director of the Center for Fintech and Internet Security at Renmin University of China, also believes that it can develop equity crowdfunding with blockchain and other technologies. Fengchi also admitted to Netease Technology that it is in this area. The industry hopes that the industry will get better and better. However, under the current circumstances where the law is not yet clear, there is indeed a lack of security. He told Netease Technology that Genesis Capital is currently working hard to do legal compliance. Work. 'Because I want to develop in this industry, and bet on the future of this industry, I can only achieve the most compliance and the most legitimate in the existing circumstances. No way, only this. ' He said.
Third, the current legal protection is a very real issue. The chairman of Qianhai International Blockchain Ecosystem Alliance, Lighting Capital Partners, Lao Weixin told Netease Technology that almost all of their previous investments were made in RMB. This is because the use of RMB to invest in the equity of the entrepreneurial team is legally guaranteed. If the project fails, and there is equity, it can also be transferred or through other means such as IP, etc., which may recover some losses. But if it is When you invest in digital currency, the project fails, nothing is lost. However, due to the fact that withdrawal and transfer are truly flexible with digital currency investment, and more and more global quality projects use only Token for fundraising, currently lighting capital also In consideration of trying such a method, there are not a few investment institutions that have considered such considerations. According to Netease Technology, many investment institutions are investing in both legal currencies and digital currencies. They are only trying such investment methods; or they have not yet voted for digital currencies. , is to maximally avoid risks. However, if the currency is used for investment, it will face the Token's collection mentioned by Song Zhiyi. The question of how to integrate the income of the Intonation and the French Currency, the current system construction is still blank.
Fourthly, some investors told Netease Technology that there is indeed chaos: There are investment institutions and joint ventures. They use digital currency funds to invest in and participate in ICO. They dump some of the previously unsuccessfully invested projects to the market and withdraw from the market. Those who are difficult to withdraw from the project. Moreover, the bigger problem is that after the tokens of these projects passed the ICO, if the prices dropped sharply, the market had nothing to say, and those investment institutions with joint ventures could hardly be held accountable.
However, at this very early stage, as one of the largest digital currency funds in China, Genesis Capital is more concerned with how to build internal strength in a bear market and accumulate strength for future development. Fengchi told Netease Technology that he We hope to do a good job in the bear market to differentiate Genesis Capital from its competitors and establish competitive barriers, including brand image, post-investment management, overseas markets, etc. 'Not in a hurry, the longer the bear market, the more solid we are.' Seemingly well-established.
How long will it be in a bear market? 'Intervals from Bitcoin to Ethereum, 4 years apart; From Ethereum to EOS, 2 years apart, When will the next revolutionary chain be born? I don't know, but will be more "Feng Chi said, 'The next time the bull market arrives, when you see it, it's too late. Every time the bonus comes up, it's too late for the public to see it. Every time it does. And I might be able to See, this depends on my work in the bear market. 'Netease Technology
4. Coin circle nobility new hunting grounds;
Text | Scallions APP Jia Wei Wei Qin
April 12, 2018, digital currency EOS soared about 40% within 24 hours, bitcoin instantly soared by 13%, and the stirrups of the currency circle once again spree.
Ten years ago, a man named Nakamoto Satoshi first proposed Bitcoin. Ten years later, Bitcoin ignited the tide of Chinese chasing wealth.
The road to Bitcoin and digital currency Nuggets is evolving: mining, speculation, ICO, and exchanges... In the past few years, the Chinese have ventured to the forefront of the world.
At the end of 2017, China Digital Currency Funds emerged like a flood. These new digital currency funds have a professional team of analysts, have AI all-weather trading technology, and develop professional investment research tools...
This is unprecedented in the development of venture capital in China for 20 years. Most of them are directly established in overseas Cayman Islands. The funds raised are not renminbi, US dollar and other legal currencies, but are mostly raised by Ethereum to participate in ICO private equity and secondary market transactions. Arbitrage in the market.
Of these new types of digital money fund players, a considerable portion of them belong to the 90s. They have a net worth of self-reliance, and many traditional PE institutions have started to plan their transformation. Some cash lenders and entrepreneurs in the technology finance sector are also pushing this field. .
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After 90 to enter the AI quantified speculation
There was no doubt that he accurately ambushed this round of market. He had talked with the Scallion APP a few days ago when he talked about the EOS super node and thought that the next blockchain super application will be lit by EOS. .
In fact, another 90-year-old Li Wenchao started speculating on Bitcoin in March 2017. The student who graduated in Beijing less than three years ago has already bought a car in Beijing by buying the house with speculative coins. Personal assets amount to tens of millions of yuan.
After the '9.4' bitcoin collapsed, he chose all in the bottom of the bargain and personal wealth surged. The reason he was so bold was that he made a large group of speculation on the currency, keeping pace with these speculations.
Wan Xiang is not the most popular person in the post-90s speculation. His most admired 90-stock speculators, Big God Zeling (a pseudonym), has personal assets of several million yuan.
In order to get the share of the digital currency private equity stage, in 2018, Wan Xiang set up a blockchain investment fund, and Li Wenchao's company was registered in the Cayman Islands to raise funds with ETH.
From the beginning of the year to the present, ETH has fallen more than 60%. Wanxiang is facing tremendous pressure in the primary market. Wan Xiang’s method of finding hedging is to invest in the secondary market.
One of his methods is to recruit investigators. He acts as a fund manager to participate in speculation, and uses the information obtained in advance to quickly buy and sell.
His second strategy is to use a computer to quantify trading robots and trade 24 hours a day. These two methods have made him very rewarding.
With the maturity of quantitative trading robot trading, he put more digital currency into it, and he became a flying trapeze. As a guest flying to Japan, Shanghai and Vietnam, he raised more funds.
In fact, Shanghai, the financial capital, has gone further in Bitcoin and Ethereum to quantify transactions. Every Friday, the author receives an invitation from a salon.
Chunxiao is such a keen trading computer worker. He first made quantitative trading software in futures companies, and started his own business in the 2015 A-share bull market.
After his startup failed in 2017, he discovered Bitcoin trading fanaticism and started looking for arbitrage space. First, Bitcoin prices in major trading platforms are inconsistent. Second, Bitcoin fluctuates greatly every day.
In just 7 months, he smashed from 20,000 yuan to 1 million. And this system is helping Chunxiao to make money 24 hours a day. By December last year, his funds had soared to 6 million yuan. In less than a year, he Rely on automated trading funds turned up 300 times.
Chunxiao's all day