Even though it has been smashed to such a state, the unethical German government and Mentougou are still continuously transferring large amounts of BTC to recharge CEX and create a tense atmosphere. This situation is thought-provoking. If CEX does not unite to establish an abnormal funds monitoring mechanism, it will be difficult for the currency circle to embark on a path of healthy development. There will always be people who use the almost free Bitcoin to cash out and suck blood, thus killing the bull market.
In fact, the German government and Mentougou do not have the most bitcoins, with a total of less than 200,000. Let's take a look at the top 9 Bitcoin spot ETFs, which currently hold more than 860,000 bitcoins. Why don't ETFs dump the market? Because they bought them with real money! There are also fund management fees, etc., which have costs, and they will only sell them when they make money. However, the German government's confiscated bitcoins have no cost, and selling them for 100 yuan is free, so they will dump the market. This violates the basic rules of the financial market, just like allowing original shareholders to sell and cash out at will in the stock market! That would be a disaster. Mentougou was forced to lock up its positions because of a criminal incident. Compared with now, it has almost no cost, so the market is worried that customers will dump the market after receiving them, causing panic.
This kind of abnormal funds with almost zero cost are realized by choosing the top exchange CEX with the best depth, and unscrupulously recharging the bitcoins at no cost to the exchange to smash the market and suck blood. If this situation is not regulated and restricted, it will never end. Even if Germany and Mentougou have smashed the market, there may be bitcoins confiscated from other countries that suddenly come in to smash the market. This kind of financial market is disorderly and dangerous, which will scare off more investors, so it must be regulated.
The biggest advantage of blockchain is that it can be traced. In today's big data era, traceability is more accurate. We have also seen that whether it is the German government's wallet or the Mentougou wallet, as soon as there is any movement, SlowMist will issue an announcement. The technology is very mature.
Therefore, the top large exchanges should unite, in fact, the top ten exchanges should unite, monitor the wallets of abnormal funds such as national confiscations and criminal confiscations, and restrict such funds from entering large exchanges to smash the market. Not to say prohibition, but at least limit the number, method and time of sales, similar to the restrictions on original shares in the stock market. Of course, you can trade over-the-counter or on some small exchanges. As long as you do not enter the top large exchanges (the top 10-20 exchanges), it will not cause a devastating impact on the overall crypto market, causing a black swan crash in the short term. This is also the only way for the crypto market to mature. I hope that this abnormal fund smashing incident can awaken the attention of the upper echelons of the currency circle, formulate more mature and beneficial trading rules as soon as possible, and let the crypto financial market move towards a standardized and healthy development path.
