1. Love and hatred
In fact, the feud between OKEx, Huobi and Binance has a long history. We can see the clues from the historical context of the three exchanges.
OKEx’s “predecessors” OKCoin and Huobi are both established domestic exchanges, both founded in 2013. The “madness” of Bitcoin has made these two exchanges the leaders of the industry, and they once occupied more than 50% of the global Bitcoin spot trading share.
In 2017, Bitcoin once again ushered in a bull run, with its price soaring to nearly $20,000.
Another giant, Binance, was established at this time and grew rapidly, breaking the confrontation between Huobi and OK.
Binance founder Zhao Changpeng and "No. 1 in the cryptocurrency world" He Yi are both former employees of OKCoin. After leaving the company in 2015, they had unpleasantness with Xu Mingxing. Now the three of them often quarrel with each other.
After the "September 4th Incident", domestic supervision was tightened, and Binance simply moved out of China and quickly occupied the overseas market. It once surpassed Huobi and OKEx to become the world's largest digital currency exchange in terms of trading volume.
At this point, a "three-way competition" has taken shape in the digital currency exchanges, and the "Three Kingdoms" battle in the currency circle has officially begun and continues to this day.
In fact, compared with the frequent verbal abuse and quarrels between the three major exchanges and their executives, this time the exposure of the black material to the media is not particularly "out of line".
In July 2019, because of Binance’s announcement about destroying its platform currency BNB, a war of words broke out between Huobi Qi Ye, Binance He Yi, and OK Jiu Mei. Even Huobi founder Li Lin and OK founder Xu Mingxing personally got involved. The three parties ridiculed each other openly and covertly, and even escalated to personal attacks.
This kind of "mutual trampling" has also extended from online to offline. In March 2020, the media reported that the same group of people appeared in OK and Huobi to stage photos for rights protection, and it is said that they have formed a "rights protection" industry chain in the cryptocurrency circle of "hiring people to hold signs - deliberately posing for photos - media reports".
2. The new normal of mutual attacks in a bear market
Behind the increasingly fierce infighting among the three major exchanges, vital interests are involved, and there are deep-seated reasons and historical inevitability.
In the bull market, everyone is busy making money. Although they are still competing with each other, the market is still growing after all. It is the stage of making the cake bigger. The only difference is who grabs more and who grabs less in the incremental market. Now the bull market is gone, and the market has reached the stage of stock competition. This is a bloody time for you to fight for each other's cake. If you have one more piece, I will have one less piece. This has led to the scene of bayonets meeting each other today.
It can be predicted that before the next round of big market comes, exposing each other's shortcomings, reporting and creating negative news among exchanges will become the "new normal".
Is it necessary to expose the fact that domestic users can register? As long as you are in this industry, everyone knows that every exchange claims to be registered abroad and does not face domestic users, but domestic users can register and trade.
Don’t regulators know this? This is too much of an underestimation of the regulators’ intelligence. Can exchanges achieve the goal of suppressing their opponents by taking turns to pierce this fig leaf?
Such foolish behavior will not only have little effect, but will also attract too much regulatory attention and even lead to the whole nest being wiped out.
3. Win-win cooperation is a legend
Is it possible for the three exchanges to put aside their past grudges, work together, and jointly promote the progress of the industry? Impossible. This is the prisoner's dilemma proposed by Nobel economist Nash, which proves that cooperation is impossible.
Here is a classic scenario of the prisoner's dilemma. Two people who conspired to commit a crime are imprisoned and cannot communicate with each other. If neither of them exposes the other, then due to uncertain evidence, each of them will be imprisoned for one year; if one person exposes and the other remains silent, the whistleblower will be released immediately for meritorious service, and the silent person will be imprisoned for ten years for non-cooperation; if they expose each other, then due to conclusive evidence, both will be sentenced to eight years. Since the prisoners cannot trust each other, they tend to expose each other and lose, rather than keep silent to achieve a win-win situation. This is a typical Nash stable equilibrium model with non-optimal results, that is, anyone will choose not to cooperate, and the final result is the worst outcome for both individuals and the collective.
turmoil
At around 11:00 a.m. on October 16, 2020, OKEx, one of the three major digital currency trading platforms in China, suddenly issued a "Suspension of Withdrawal Announcement" stating that some of the company's private key holders are cooperating with the public security organs in the investigation and are currently out of contact, making it impossible to complete the authorization. OKEx decided to suspend user withdrawals from 15:00 on October 16, 2020 (Hong Kong time).
As soon as this announcement was released, it quickly caused a stir in WeChat groups, with all kinds of rumors and even gossip flying everywhere. Then, it triggered a "domino effect" in the market, with currency prices falling across the board. The first to be hit was OKEx platform currency OKB (OK coin), which once plummeted by more than 11%. The mainstream digital currency Bitcoin once fell below $11,200, and other mainstream digital currencies also fell.
In November 2020, it suddenly broke out that the police had taken away 17 core employees of Huobi, including Li Lin and Zhu Jiawei, except for the senior management. On November 4, Zhu Jiawei, the chief operating officer of Huobi.com, was taken away in public after the Huobi Zunyi Conference. On the same day, HT plummeted by 20%. Subsequently, Li Lin also lost contact on November 4. Afterwards, the police took away 17 related employees one after another. On November 26, affected by the arrest of the technical director, Huobi went down three times in a row within 24 hours.
According to an anonymous Huobi employee, “I have no idea what to do in the past month. Except for Du Jun who just did some PR in Singapore, all the executives are silent now.”
Zhu Jiawei was arrested on the spot, and Li Lin lost contact completely two days later
On October 16, the tenth day after the arrest of OKEX’s Xu Mingxing, OK, which could not hide the news, announced the suspension of withdrawals and coins. Domestic exchange users withdrew large amounts of money to overseas exchanges. The top executives of OK and Huobi were more panicked than the users, because they knew very well what this meant for the two major exchanges with core businesses in China. Less than 10 days after OK’s collapse, on November 2, Huobi held a high-profile offline event in Zunyi and asked employees and participants to participate in a meaningful event such as “Retracing the Long March”. At the meeting, Li Lin said excitedly: “In the past ten or twenty days, no less than fifty calls have called to ask me if I am afraid. I am not afraid.”
Under the heavy hammer of regulation, cryptocurrency exchanges restrict transactions in mainland China
Tear down temples and expel monks, and impose a comprehensive ban!
On the afternoon of September 26, 2021, Huobi Global Station issued an announcement stating that in response to relevant regulatory requirements, Huobi Global Station has stopped new user registration in mainland China on September 24, 2021. For existing users whose identities are authenticated as mainland China, it is planned to complete the orderly withdrawal before 24:00 on December 31, 2021, while ensuring the safety of user assets. The specific withdrawal details will be notified to users through announcements, emails, in-site letters and text messages.
On October 13, 2021, Binance issued a notice: In response to national policy requirements, it will remove the CNY trading area from December 31, 2021, and at the same time conduct a cleanup of platform users and withdraw from the Chinese mainland market.
Earlier on September 26, Ouyi issued a statement saying that it had stopped registration of mainland users. Currently, mainland Chinese users can no longer access the website. All apps have also been removed from the mainland market, and user withdrawal will be completed before the end of the year.
At this point, the three largest centralized trading platforms in the country will all withdraw from China, and the remaining small platforms are also being eliminated.
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