Recently, okex destroyed 700 million platform coins, and other platforms followed suit. There is a wave of destruction in the industry.
Today, let’s take a brief look at the platform currency, which is known as “encrypted world securities” and its biggest risk.
What is platform currency
Platform currency, as the name suggests, is the token issued by the cryptocurrency trading platform.
The earliest platform currency can be traced back to the time currency (TMC) issued in the age of 9 ⽉ 12 ⽇ bit (today’s AEX) in 2013. The holders can enjoy dividends and other benefits according to the proportion of their holdings. Although time coin is the first platform coin to create the “trading and mining” mode, it has not developed due to its early development and low market recognition.
At present, for most people in China, BNB, HT and okb are the three most familiar platform currencies. BNB (binance coin) is the token issued by coin an, HT (Huobi token) is the global ecological integral issued by fire coin, and okb is the global ecological integral issued by OK blockchain.
Whether it is called token or integral, generally speaking, platform coins are issued based on blockchain technology, most of which are ERC 20 tokens issued based on Ethereum platform. According to Etherscan’s statistics, BNB has the highest market value among more than 170000 erc-20 tokens.
The role of platform currency
Generally speaking, the trading platform will promise the holders of NT $Ping to enjoy the following rights and interests, namely, the role of NT $Ping:
1. As a service charge for intra platform transactions, there is usually a fixed discount or discount;
2. As an intermediary, it conducts currency transactions with other tokens;
3. Participate in the activities of the platform, such as receiving empty coins, voting before launching a new token, giving priority to subscribe for a new token, etc;
4. On chain fuel charges for future decentralized trading platforms (which can be understood as handling charges paid to miners);
5. As a payment tool: some businesses and service providers accept certain platform currencies as payment tools;
6. Each trading platform has laid out the ecology one after another, and the platform currency will gradually infiltrate into its own ecology, enabling the platform currency.
The risk geometry of platform currency
Although platform currency is similar to stocks and securities in many aspects, due to the lack of relevant laws and regulations, the issuance of platform currency and the rights and interests of its holders are not subject to strict legal supervision and protection. Therefore, platform currency is more like a “commitment” given by the trading platform and endorsed by the trading platform itself, which is the biggest risk of platform currency. The recent fcoin thunderstorm is a similar event.
Another is that prices may be manipulated in the short term. Users generally store platform currency in the trading platform, and the willingness to put forward the trading platform is not strong. This will lead to the opacity of most assets and the real circulation quantity; the official actions may be disclosed in advance, which will lead to the early cashing of the good fortune and the retail investors taking over the offer. On the one hand, it completely depends on the self-consciousness of the institutions.
Editor in charge: CT