FCoin, which once stirred up the exchange situation by itself, finally came to an end.

FCoin, which has been repeatedly exposed by users as difficult to withdraw coins, really can’t withdraw coins this time.

In fact, FCoin started community-based operations as early as 2019. Today, how the huge amount of funds disappeared and the reasons behind the huge deficit have not been disclosed in detail. To further verify the truth, we had to learn the real situation through Zhang Jian.

Since FCoin officials have always remained silent, it is difficult to verify various speculations in the industry for a while. So, back to the cause of the whole incident, why did Zhang Jian destroy 700 million FT tokens?

But Zhang Jian disappeared at the center of the boiling incident just like the previous few days.

On the evening of February 17th, 7 days after FCoin’s strange maintenance incident, Zhang Jian, the founder of FCoin, released an announcement to reveal the “truth of FCoin’s downtime”.

Zhang Jian mentioned in the announcement that he is facing the problem that the fund reserves cannot be cashed out by users. It is estimated that the scale of unpaid cash is between 7,000-13,000 BTC (worth about 68.6 million-127 million US dollars). Zhang Jian mentioned that he has decided to switch the track and start over, and use the profits from the new project to compensate everyone for the loss. Tell users very frankly that the biggest problem FCoin is currently facing is insufficient money, no hackers, no internal strife, but a technical problem at the beginning that has led to an irreparable situation today.

Regarding cash withdrawal by mail, Zhang Jian said that it is divided into two stages: current and long-term. It is expected that the current cash withdrawal by mail will last for 2-3 months. However, the current assets are not enough to pay users, so we can only minimize the number of people affected. In the long-term stage, the mail withdrawal process can only wait until the new project enters the formal stage and starts to make profits. This process will last for 1-3 years. In the end, Zhang Jian left behind the eight characters of "As long as I live, I will be responsible to the end", but almost no one paid for it.

After the announcement came out, the relevant FCoin telegram group, FTFan community, WeChat community and other places exploded, full of retail investors looking for Zhang Jian to defend his rights.

According to Beishu blockchain, regarding the FCoin incident, the analysis of the Beijing Chainsmap monitoring system found that on February 14 this year, nearly 55 BTC remaining in the cold wallet address had been transferred to the address starting with 363sZd, and the related OMNI USDT was also transferred to At present, it is seen that this address occasionally has withdrawal operations of hundreds to tens of thousands of USDT.

Is this opening drama a "helpless bankruptcy" or "premeditated"?

Shortly after Zhang Jian’s announcement was released, a lawyer’s interpretation was reposted in various FCoin rights protection groups. In the screenshot, the lawyer interpreted that he originally thought that Zhang Jian was going to run away, and he could file a fraud case if he ran away. As a result, he admitted all the creditor's rights and successfully turned a criminal case into a civil case. As for not paying it back later, have no idea.

In view of the legality of digital currency investment, the place of registration of Fcoin, and the fact that Zhang Jianjian is located abroad, it may be difficult to seek a legal solution to the Fcoin case in China. At present, this problem is also one of the security risks faced by exchange users whose actual control persons are overseas, such as Binance.

According to Beishu Blockchain, Zhang Jian had already gone to Singapore when Fcoin was booming, and bought a luxury house there to settle down.

The collapse of FCoin is triggering a "domino effect" in the currency circle.

After the FCoin storm, ExinOne team Yubibao Fund first issued an announcement, saying that because some digital assets exist in the FCoin wealth management account, Yubibao will suspend deposits and withdrawals.

Also affected by the thunderstorm are many quantitative teams and loan arbitrage individuals. "At present, there are 3 quantitative funds that cannot be released." An industry insider described that the impact of the FCoin crash is causing a chain reaction and affecting the currency circle.

Affected by the failure of FCoin to fulfill the crash, some quantitative teams were indeed affected.

Crypto analyst Lai Dong analyzed that FCoin's spot transaction rate is very friendly to the quantitative team, and its default rate is even half cheaper than OK for a period of time.

The tsunami caused by FCoin in the currency circle has hit. Not only Yubibao but also many wealth management platforms conduct wealth management in FCoin, and there are also many quantitative transactions with a large amount of funds. Perhaps the impact of this FCoin incident is far more than what we have seen so far, and a deep tsunami may be brewing.

This incident sounded the security alarm of the centralized exchange, and people began to pay more attention to the transaction security of the centralized exchange, and the centralized operation mode was once again questioned.

Another problem that may arise is the survival of small and medium-sized exchanges. FCoin has once again caused users to worry about small exchanges, and the trust issue is triggered again, which may accelerate the reshuffle period of exchanges. It is expected that the days of small and medium exchanges will become sad in the future, and there may be a batch of small transactions If it falls down, there may also be dark horse exchanges. The key problem lies in users.

Some people say, don't trust any centralized exchange. Someone commented: Centralized exchanges are bugs in the blockchain world. Some people in the industry pointed out the disadvantages of centralized exchanges: when users trade on this kind of exchange, they are running naked, and it depends entirely on the character of the other party.

In fact, in the centralized trading mechanism, the exchange holds the private key of the user's assets, and the misappropriation of user's assets is very common. Some insiders commented that in the current market, there are only single-digit exchanges that will not misappropriate client assets.

In this way, choosing an exchange is like a gamble. Doesn’t the centralized exchange have the best solution? Perhaps the reserve system is a short-term feasible solution.

From this FCoin incident, we can also see the status quo of the currency circle. With the snowball game and the limited number of incremental users in the currency circle, many financial models cannot actually be carried out in the currency circle. The final result of forced operations is that the platform cannot afford to choose to run away , resulting in double losses for users and the platform.

Many users do not have the habit of keeping investment evidence, and the specific amount of investment may not be very clear, which also increases the difficulty of later rights protection. So in the current situation, how should we protect our financial security?

Don't put your assets on exchanges for a long time, especially the unknown 18th line small exchanges. As a centralized exchange, you can change the withdrawal rules at any time. If you don’t want you to withdraw coins, there are really too many ways. Well-known top exchanges also need to consider the views of passers-by, and those unknown small exchanges have no worries at all, and there is nothing they can do if they say they won’t let you mention it.

1. Back up the private key/mnemonic

The private key is the most critical thing in the management and use of digital currency. For all digital users, the private key determines the ownership, and the possession of the private key is the real possession of digital currency assets.

Therefore, how to keep the private key safely is the basic knowledge that everyone needs to master before entering the digital currency field. Be sure to keep it safe. Do not store screenshots on your phone or save them online in a cloud drive, you need something permanent, solid and reliable to store your mnemonic phrase.

2. Novice users: choose a safe and easy-to-use escrow wallet

For users who are new to the digital currency world, there is a certain threshold for personal custody of private keys/mnemonic words. In addition to hacker attacks, many coin loss incidents are caused by users not keeping their private keys/mnemonic words.

In this case, you can choose a safe and reliable escrow wallet. The escrow wallet helps users keep the private key, so only the mobile phone number or email address is required when registering, and there is no need to enter mnemonic words, nor does it support the private key import function. You only need to keep your login password well, even if your phone is lost, you can still retrieve your assets.

In order to ensure account security, different wallets and exchange accounts should use unique passwords as much as possible. You can use tools such as 1password and Lastpass to generate high-random passwords, and keep the master password properly; enable secondary verification, such as Google verification code, to give Multiple security guarantees for your account.

3. Cold wallet, the safest way to hoard coins

The cold wallet is separated from the Internet. In theory, the private key can never touch the Internet, so it avoids attacks from the Internet and is easy to store. The cold wallet is considered to be the safest digital currency storage method, and the average user stores a large amount of money. amount of digital assets.

At present, many large households with large assets choose to use hardware wallets to store digital currency. The hardware wallet is a physical device. The private key of the digital asset is stored separately in the chip. When the user needs to use the private key, it can be called from the hardware wallet. Private key data. At the same time, since the hardware wallet can perform data backup, once the device is lost, the digital assets can also be retrieved.

Therefore, to ensure the safety of your funds, you must first choose a reliable place to store them.

After this turmoil, the value of the platform currency, the supervision and security of the centralized exchange are all worthy of re-examination by the players who are still in the field.