It is recommended that all exchanges should prohibit supporting this kind of coin exchange and additional issuance
In the cryptocurrency market, there is a behavior that deserves our high attention, that is, coin exchange and additional issuance. I strongly recommend that all exchanges should prohibit supporting this behavior.
1. If the full circulation market value of the old coin is low, some dealers may consider collecting chips to pull the market. However, once there is a situation of coin exchange and additional issuance, the dealer dare not do so. Because after they have worked hard to collect a wave of chips, the project party can exchange the coin and increase the number by several times, which makes it extremely difficult to pull the market.
2. Even if the project party changes to a new coin, the circulation of the old coin on the exchange will decrease. In this case, it is difficult for the project party to cut leeks with the new coin, and the old coin held by retail investors is more likely to rise due to the reduction in circulation. But this seemingly favorable situation for retail investors is actually a short-term illusion because it disrupts the normal order of the market.
3. The main reason for the project party to change the coin is, on the one hand, to sell out their shares, and on the other hand, because the blockchain cannot be tampered with, the old coin can no longer change the contract to increase the issuance, so it can only change to a new coin and call for the exchange to map. However, this behavior itself seriously violates the core spirit of blockchain, which is immutability and irreversibility. Now, the project party can raise money again by changing the name and shell.
As an insider, I feel disgusted by this behavior. If this situation continues, how can we attract people outside the circle to participate? What's more, outsiders themselves are biased against cryptocurrencies. We should be committed to maintaining a healthy and orderly market environment, rather than condoning such rule-breaking behavior.
