This is a very famous chart in the cryptocurrency market, does anyone know the story behind this The picture with Super Mario drawn on it is actually a digital currency kline chart On July 21, ARP coin plunged 85% in just 5 minutes, a Super Mario kline chart went viral in the cryptocurrency world, this cliff-hanging way of harvesting leeks is hard to eat. Who earned it? Who lost money? Today, I'd like to tell you how to distinguish between cottage coins, air coins, marketing coins and value coins air coins are the kind of coins whose prices are not high and will soon go to zero. As Bitcoin is hyped, it has brought fire to China's domestic virtual currencies, which are uniformly called "cottage coins" in the industry, and there are hundreds of them, such as infinite coins, quark coins, zeta coins, red coins, invisible gold bars, etc. What kind of coin is a value coin, is it recognized by many people, or is there any standard From the perspective of domestic "cottage coins", very few people really earn coins through mining, most people are trading and speculating: buying at low prices and selling at high prices. If there are no takers, the "cryptocurrency" will soon collapse
So what is "air money"? In June 2017, a group of aircoins from speculative elements in the country started to enter the market. These companies are typically characterized by teams with flashy looking backgrounds but no past history of accomplishments, let alone checking the progress of their project code on GitHub, and teams that have only been exposed to blockchain in 2017. They didn't even set up a company, relying mostly on packaging a good concept of blockchain doing everything to fool laymen into crowdfunding investments. Speculative overtones are particularly evident. But benefiting from market dividends, all of these coins have appreciated 5x or more. Just a few months later, though, these bubble-heavy aircoins leaked out as fraudulent and were exposed in media reports, and these companies became the hardest hit by regulatory governance. I once had a cryptocurrency friend tell me how they felt after they sent out coins: now this money is all windy, just spend it. MLM coins are undoubtedly aircoins, but when it comes to MLM coins, let's start with a comparison; Bitcoin is open source and has a limited number of 21 million coins, and every bitcoin generated is transparent and not subject to any manipulation. MLM coins can't be on regular platforms, most are traded as web pages and can be controlled artificially, for example, you can stop trading if you want and be on any coin you want. You can interpret MLM coins as various digital currencies similar to Q-coins, without using any blockchain technology at all. Tencent can give out unlimited amounts if it wants to. Therefore its future value is almost zero.
So how do we avoid being leeks? We habitual cryptocurrency newbies, commonly known as leeks, is to cut a crop and out of the first crop: no substance on the white paper, high frequency use of key words without substance: transparency, de-trust, decentralization! There's also a lack of clarity in the white paper about how the funds will be regulated and the project schedule, so beware! Number 2: Make the project huge and smoky, with no obvious profit model or business value, and take a detour. Number 3: All the energy is put into promotion, the code is uninnovative and there is no solid innovative technology in sight, and it's basically broken. Article 4: Team information is not transparent, excessive packaging team, boasting team are foreign senior programmers, and then looking for a few cryptocurrency bigwigs, or celebrity netizens and the like stand, such projects should be cautious. The fifth: to see whether a project is reliable, you can also judge from the choice of consensus algorithm, PoW, PoS, PDBFT, DPOS, DAG???, here is the air coin cottage coin to this step of the most painful and most difficult to write, basically are blindly made up.