In recent days, the currency circle has not stopped, and these three major exchanges - Huo Coin, Coin An, and OK - have not stopped, starting to tear apart.The matter has to start from July 12th
In recent days, the currency circle has not stopped, and these three major exchanges - Huo Coin, Coin An, and OK - have not stopped, starting to tear apart.
The matter has to start from July 12th. On the same day, the cryptocurrency exchange, Coin An, announced that it had completed the eighth repurchase and destruction of platform currency BNB, and would prioritize the destruction of BNB held by the team in the future.
Here is a brief explanation for Xiaobai users. In 2017, when Coin An launched platform coin 1CO (Aixio), they promised to use 20% of their own profits to repurchase BNB circulating in the market. This rule is definitely a great benefit for the currency price. Because once repurchased and destroyed, the quantity of coins decreases, and the corresponding price will rise, which is also a common practice on many platforms nowadays, such as Huo Coin and OK.
However, the matter is far from simple, and we leeks are still too naive.
The total amount of platform coins on Coin An is 200 million, and the team keeps 40% (80 million) of them locked in, which Coin An previously said would never be sold. So the question comes, is the Coin An team drinking from the west?
Hey, they have been raising the coin price before but haven't unlocked it. Now they have finally come up with a big move: Coin An will prioritize destroying the BNB held by the team in the future.
This new rule also means that in the short term (estimated to be around 10 years), Coin An will not use real gold and silver to buy BNBs circulating on the market, but will prioritize the monetization of the locked coins in their team's hands. In other words, Coin An is equivalent to moving money from his left hand to his right hand. Isn't this thing taking off your pants and farting?
Why did Coin An make such a fuss?
Because, the current situation of Coin An is really a bit complicated. On the one hand, Coin Security has been unable to obtain a license in mainstream countries and has drifted away from regulation, forcing Coin Security to only block US IP addresses and launch DEX; On the other hand, the top advantage of Coin An has begun to be surpassed by other exchanges, such as Mocha. Coin An can only open leverage trading that was previously disdainful to open, to increase its own attractiveness.
What's the name of that? You used to be indifferent to me, but now I make you look down on it. Under this pressure, Coin An held a BNB that could be seen or not used, feeling like a monkey scratching in his heart. Of course, he had to find a way to quickly monetize the coin in his hand.
So, what are the benefits of doing this for Coin An?
We need to understand that if the 80 million coins held by the Coin An team flow into the market, there will be selling pressure, and the coin price will continue to decline, which will not be beneficial for Coin An's monetization. But now the situation is different. Buying back directly with profits, there is no pressure to monetize at all. It's a good way to directly cash out at a high level.
However, this may not be good news for ordinary investors, as future growth expectations for BNB are stuck and BNB prices may fall.
Of course, after changing the rules of Coin An, all parties exploded, and the first to be among Coin An's competitors - OK and Huo Coin.
OK founder Xu Mingxing said, 'Coin An, you boast about your revenue of billions of dollars all day, why haven't you posted your tax records? You're a tax evader.'. Huo Coin is also making a noise, let alone saying it. Even if it sounds good, it's just an excuse not to want to repurchase platform coins on the market. As of today, things are still fermenting, and BNB has been falling for several consecutive days, with a drop of over 10%. So the question is, do you still dare to buy BNB? Anyway, I'm afraid.
Wen/Guapi Shuo
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