Home / Blockchain / During a scrambled winter, Blockchain projects in China are tested

During a scrambled winter, Blockchain projects in China are tested

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Close up on a gold Bitcoin coin over a stack of Chinese Yuan banknotes. (Photo credit: Getty Images)Getty

It will not take long to familiarize yourself with the so-called "pump and drain" scheme in the cryptic space in China – that is, increase the price of encrypted tokens to attract retail investors and after raising the price, sell the tokens and leave. In most cases, such cryptographic projects or investors behind them would take their money and go silent; but an investor, who would have been accused of doing so, decided not to be.

On November 7, Yang Ning, a well-known angelic investor, wrote a post on his WeChat, a popular social media platform in China, declaring his departure from the Chinese cryptic sector.

"It's nice to leave the encrypted world full of liars and gamblers, I was going away in silence, but I had to go against the whole cryptographic sector, I canceled all the chats and people in the group [on WeChat]. If you're still in the encrypted world and you're able to read this post, it just means you're not well known. I have already lost faith in the concept of decentralized blockchain. Blockchain can only grow under the centralized structure of laws and regulations. [This is] the last time I commented on this decision. "

The post received a widespread reaction focused on, surprisingly, Yang and his own project: Commerce Data Connection (CDC).

Established at the beginning of January this year, CDC has established itself as the world's first blockchain-based decentralized consumer sharing network. Not long after the launch, a total of 10 million CDC tokens were issued in May and traded on Huobi, the third largest exchange rate encryption exchange.

Yet the party was over too early – about six months later, on November 5th, Huobi Global published a community post, announcing that CDC tokens were suspended from all trading and filing services on Huobi, after the cryptographic exchange found that the project team "violated the rules of Huobi Global for which the total blocked quantity of project team was not consistent with what was promised in the white paper. "

During several interviews with blockchain news sites in China like 8btc, Yang has admitted losing $ 2 million with his CDC project and about 20% of tokens are controlled by "bad actors."

At the time of printing, the Official site CDC has removed all information except a statement as follows:

"Due to the discovery of some members of the community who mischievously manipulated the price of the token, [the team] has decided to dilute the value of the token held by these bad actors. This move will reduce the cost of holding tokens from the community and will stimulate the market to grow healthier "

Meanwhile, this long-time angelic investor has failed to answer many other key CDC questions, for example, who are the "bad actors". After his very high profile statement to get out of crypto on WeChat, many, including CDC investors, are still waiting for him to answer these questions.

According to a chat history of a WeChat group message that still listed Yang as a group member on November 7, several other members of the group sent the same messages to Yang, initiated by a WeChat user named Dovey Wan.

"Mr. Yang, [will you consider] publish the financial documents of the project [CDC]? Do not you explain the fact that the team blocked the tokens and then pumped them? To be honest, since tokens and codes are returned to the community to let the project develop autonomously, does it also mean that money should be returned to the community? "

Yang did not answer.

One person who had previously invested in Yang's CDC project and refused to be identified in the story said that the project had failed to achieve the goals listed in its original white paper right from the start.

"The market at the moment [earlier 2018] it was more of a "help yourself" situation, "the person said, explaining his failure to recognize the problems surrounding Yang's project during an early phase." [the project] has a story to tell and the story seems plausible, it could make a profit. that's how [crazy] the market was at the time. "

From a known investor to an alleged scammer, Yang's case raised a question: traditional venture capitalists like Yang jumped in the cryptic world … altogether?

While the case of Yang could potentially put a question mark for many investors with similar backgrounds, Emma Liao, another of the first internet industry investors, could, however, offer a much brighter path for the next hesitant investors.

Similar to Yang, Liao is also not someone who can be described as "low-key."

When this 32-year-old investor showed up, he began his sentence with the fact that his great-grandfather was Liao Yaoxiang, a senior Kuomintang general who successfully fought against the Japanese imperial army during the Second Sino-Japanese War .

In China, when you come from a "red" family – a family that is associated with the Communist party – the association often opens you up more doors.

Although Liao said he did not think the background of his family has benefited, from cross-border mergers and acquisitions to the foundation of China's first professional ice hockey team, Liao's last decades of experience in various industries are impressive.

The curriculum from the almost perfect appearance did not prevent it from dreaming even bigger.

As he entered the cryptic landscape, Liao arrived with an ambitious goal: to take mainstream blockchain technology.

Ultimately, this dream is what separates people like you from Yang, especially during a bear market, according to an interview with Liao.

Liao, who said he knew Yang personally, refused to comment specifically on his case. & Nbsp; But he agreed to speak at a much wider level in which he found the incidents as the case of Yang very shocking.

"I would say that the mistake they have is that they have underestimated the savage nature of the crypto world," Liao said. "[…] you were fooled because you were entering a battle, a wild battle you were not used to – it's nobody else's fault. "

According to Liao, before taking Ultrain, the project he co-founded with several former employees of Alibaba, he had spent a lot of time and money learning about the blockchain and the cryptocurrency.

And hard work is paying off.

Ultrain, a project that hopes to provide public infrastructure for the future of the decentralized blockchain business, also presents an almost perfect curriculum like Liao herself: she has collected some of the best talents in the crypto field in China, including cryptographic core and technicians from Alibaba and Ant Financial, a subsidiary of Alibaba. With the support of the strong technology team, it has made innovations and optimizations in various sectors, such as consensus, smart contracts and development frameworks.

With that said, by far, Ultrain was able to raise $ 20 million from some of the most important venture capitalists and symbolic funds in China including Morningside Venture Capital, BlueRun Ventures, Draper Dragon, Aplus Capital, DHVC, FBG Capital, NEO Global Capital and Ceyuan Ventures.

In addition to the successful financing and launch of a recent product in October, Liao said that what makes Ultrain truly exceptional is the team behind it, a group of people who firmly believe in a future built on the blockchain.

"They [core members at Ultrain] options were offered on shares in Alibaba along with high salaries, "said Liao." They jumped out of Alibaba, the convenient platform, and joined us [only] because we want to do the [blockchain] technology works and to actually build a business ecosystem ".

"We have no money in the short term," he added.

In fact, as Liao's response suggests, in a sector that is still considered as nascent but rapidly growing, the reasons that brought people here play an important role. For anyone who & nbsp; be here & nbsp; to pursue "a passing fashion" or a quick profit, & nbsp; & nbsp; their projects may have been doomed to fail since the beginning.

Of course, during a period in which the bitcoin, the cryptocurrency n. 1, had dropped up to 78% from its all-time high of around $ 20,000 last December, only time can really tell who the final winners are or whether or not there is a winner.

But for now, the comparison between Liao and his Ultrain with Yang and his CDC may have revealed a positive thing about a bearish market that many may have lost: it has also become a real test for projects crypts that were unleashed during the bull market at the start of this year. And only the best can survive the cold winter.

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Close up on a gold Bitcoin coin over a stack of Chinese Yuan banknotes. (Photo credit: Getty Images)Getty

It will not take much time to familiarize yourself with the so-called "pump and dump" scheme in the cryptic space in China – that is, to increase the price of encrypted tokens in order to attract retail investors and after the price has grown, to sell tokens and leave. In most cases, such cryptographic projects or investors behind them would take their money and go silent; but an investor, who would have been accused of doing so, decided not to be.

On November 7, Yang Ning, a well-known angelic investor, wrote a post on his WeChat, a popular social media platform in China, declaring his departure from the Chinese cryptic sector.

"It's nice to leave the cryptic world full of liars and gamblers, I was about to leave quietly but I had to go against the whole encrypted sector. I deleted all the chats and people in the group [on WeChat]. If you're still in the encrypted world and you're able to read this post, it just means you're not well known. I have already lost faith in the concept of decentralized blockchain. Blockchain can only grow under the centralized structure of laws and regulations. [This is] the last time I commented on this decision. "

The post received a widespread reaction focused on, surprisingly, Yang and his own project: Commerce Data Connection (CDC).

Established at the beginning of January this year, CDC has established itself as the world's first blockchain-based decentralized consumer sharing network. Not long after the launch, a total of 10 million CDC tokens were issued in May and traded on Huobi, the third largest exchange rate encryption exchange.

Yet the party ended too early – about six months later, on November 5th, Huobi Global published a community post, announcing that CDC tokens were suspended from all trading and filing services on Huobi, after the cryptic exchange found that the project team "violated the rules of Huobi Global for which the total blocked number of tokens of the project team contradicted what was promised in the white paper".

During several interviews with Chinese blockchain news sites like 8btc, Yang admitted he had lost $ 2 million with his CDC project and about 20% of tokens are controlled by "bad actors".

At the time of printing, the official CDC website removed all information except a statement as follows:

"Due to the discovery of some members of the community who mischievously manipulated the price of the token, [the team] has decided to dilute the value of the token held by these bad actors. This move will reduce the cost of holding tokens from the community and will stimulate the market to grow healthier "

Meanwhile, this long-time angelic investor has failed to answer many other key CDC questions, for example, who are the "bad actors". After his very high profile statement to get out of crypto on WeChat, many, including CDC investors, are still waiting for him to answer these questions.

According to a chat history of a WeChat group message that still listed Yang as a group member on November 7, several other members of the group sent the same messages to Yang, initiated by a WeChat user named Dovey Wan.

"Mr. Yang, [will you consider] publish the financial documents of the project [CDC]? Do not you explain the fact that the team blocked the tokens and then pumped them? To be honest, since tokens and codes are returned to the community to let the project develop autonomously, does it mean that money should be returned to the community? "

Yang did not answer.

One person who had previously invested in Yang's CDC project and refused to be identified in the story said that the project had failed to achieve the goals listed in its original white paper right from the start.

"The market at the moment [earlier 2018] it was more of a "help yourself" situation, the person said, explaining his failure to recognize problems around the Yang project during an early phase. "Until [the project] has a story to tell and the story seems plausible, it could make a profit. that's how [crazy] the market was at the time. "

From a known investor to an alleged scammer, Yang's case raised a question: traditional venture capitalists like Yang jumped in the cryptic world … altogether?

While the case of Yang could potentially put a question mark for many investors with similar backgrounds, Emma Liao, another of the first internet industry investors, could, however, offer a much brighter path for the next hesitant investors.

Similar to Yang, Liao is also not someone who can be described as "low-key".

When this 32-year-old investor showed up, he began his sentence with the fact that his great-grandfather was Liao Yaoxiang, a senior Kuomintang general who successfully fought against the Japanese imperial army during the Second Sino-Japanese War .

In China, when you come from a "red" family – a family associated with the Communist party – the association often opens doors for you.

Although Liao said he did not think the background of his family has benefited, from cross-border mergers and acquisitions to the foundation of China's first professional ice hockey team, Liao's last decades of experience in various industries are impressive.

The curriculum from the almost perfect appearance did not prevent it from dreaming even bigger.

As he entered the cryptic landscape, Liao arrived with an ambitious goal: to take mainstream blockchain technology.

Ultimately, this dream is what separates people like you from Yang, especially during a bear market, according to an interview with Liao.

Liao, who said he knew Yang personally, refused to comment specifically on his case. But he agreed to speak at a much wider level in which he found the incidents as the case of Yang very shocking.

"I would say that the mistake they have is that they have underestimated the savage nature of the crypto world," Liao said. "[…] you were fooled because you were entering a battle, a wild battle you were not used to – it's nobody else's fault. "

According to Liao, before taking Ultrain, the project he co-founded with several former employees of Alibaba, he had spent a lot of time and money learning about the blockchain and the cryptocurrency.

And hard work is paying off.

Ultrain, a project that hopes to provide public infrastructure for the future of the decentralized blockchain business, also presents an almost perfect curriculum like Liao herself: she has collected some of the best talents in the crypto field in China, including cryptographic core and technicians from Alibaba and Ant Financial, a subsidiary of Alibaba. With the support of the strong technology team, it has made innovations and optimizations in various sectors, such as consensus, smart contracts and development frameworks.

With that said, by far, Ultrain was able to raise $ 20 million from some of the most important venture capitalists and symbolic funds in China including Morningside Venture Capital, BlueRun Ventures, Draper Dragon, Aplus Capital, DHVC, FBG Capital, NEO Global Capital and Ceyuan Ventures.

In addition to the successful financing and launch of a recent product in October, Liao said that what makes Ultrain truly exceptional is the team behind it, a group of people who firmly believe in a future built on the blockchain.

"They [core members at Ultrain] options were offered on shares in Alibaba along with high salaries, "said Liao." They jumped out of Alibaba, the convenient platform, and joined us [only] because we want to do the [blockchain] technology works and to actually build a business ecosystem ".

"We have no money in the short term," he added.

In fact, as Liao's answer suggests, in a sector that is still considered as nascent but rapidly growing, the reasons that brought people here are important. For anyone here to chase "a fashion" or a quick profit, their projects may have been doomed to fail since the beginning.

Of course, during a period in which the bitcoin, the cryptocurrency n. 1, had dropped up to 78% from its all-time high of around $ 20,000 last December, only time can really tell who the final winners are or whether or not there is a winner.

But for now, the comparison between Liao and his Ultrain with Yang and his CDC may have revealed a positive thing about a bearish market that many may have lost: it has also become a real test for projects of encryption that were unleashed during the bull market at the beginning of this year. And only the best can survive the cold winter.

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