If winter comes, can spring far behind?
I don’t know.
We all want to know.
Winter has now come. The BTC market also be frozen. The virtual currency market in the whole world is continued to plunge since January. The financial system continued to totter. BTC were plunging, and bad economic news was unabated. To many investors were cost huge many and time in this area. This was worrying and unacceptable. When market was slumping, many exchanges wanted to make some adjustment. On November 17.2018,YEX exchange announced plans to destroy their YEX coin for a week, they called this “BLACK HOLE PROJECT”. Will somewhat reduce YEX coin can benefit the investor significantly? What kind of effect will it have on virtual currency market?
INNOVATIVE WAY TO DESTRUCTION
Actually, a lot of exchanges seek to destroy their own coin, like BNB. BN exchange buys back BNB every quarter. It’s worth to mention that YEX’s mode of operation is different from BNB. The innovation of this mode is their ruin by relay.
We learned from the official website, users join the activity and put YEX into destruction of pool. And official destruction of numbering is according to the number of YEX coin in pool, up to 128 times. The original plan is that the project will continue through the week. Surprisingly, after 5 hours the project is received a complete success. The number of YEX in the pool is reached maximum 4 million. The YEX exchange will destroy 236 million YEX in the next two days. The total number of YEX is 1000 million. At present current YEX in marketing is about 250 million, they will destroy 24%of YEX.
There is a problem. This is a good thing for users who hold YEX coins. Why not wait for the other user to destroy it?
“we have thought about it. That is what we are worried about. So we will give ETH to users who destroyed YEX more than 1500.”---YEX Director of Operation Mr Wang
He mentioned YEX exchange will give ETH to the user who ruined YEX more than 1500. During the event, the YEX destroyed by the user will be given back to ETH at 0.1RMB per YEX.
“Since the user destroys YEX, he gets the reward of ETH. It’s like he selling YEX in market price.
It’s not a loss to the user, and we are going to do a lot more destruction. This prevents everyone just waiting for other people to destroy. Only reach the maximum of destruction pool, the official destruction can be largest.”---YEX Director of Operation Mr Wang
Now we know what is “Black Hole Project”. What’s the benefit of that? After analysis, I think there are several benefits to users:
TO RAISE THE VALUE OF YEX
Official destruction of YEX is a great boon to users. Similar to stock market buybacks and write-offs. Buybacks and write-offs would boost the share price of the company, reduce the amount of shares outstanding, make it harder for acquirers to buy . Destroy YEX is also a balance of supply and demand controlled by reducing the amount of virtual currency in circulation. With an official maximum destruction of 236 million, it's a half the amount in circulation. The value of YEX is up 7.93%, the quote is 0.1RMB/YEX, according to official data.
BOOST USER CONFIDENCE IN THE BEAR MARKET
The biggest long-term worry is not the bear market, but confidence. The BCH community is break apart,, make the people panic. The YEX stand out to set the example. They try to give users confidence, give market confident.
YEX had just released “mining project”. As a reward, the miner gets YEX and some bonus. And if any new coin want to join YEX exchange, they only require 200 ETH or other equivalent coins. In addition, there is no other costs. And those coins will give to their users by airdrop. Thus it can be seen, the YEX exchange’s circulating mechanism of transaction in virtual currency is a complete system. Some coins like BTC, they have much more complex models and system, that’s why YEX is more manageable than other well-know coins in a bear market. This project’s benefits are obvious. But I still worry about it long-term development. The highest amount of destruction in this event is 1/4 of the total amount of YEX. However, the amount of YEX remaining is still large compared with BNB or other coins. If the YEX exchange can continue to destroy or increase the destruction efforts will make the prospect of the currency price more clear.
In conclusion, for the first time the YEX exchange destroyed YEX coin with their users. Due to the impact of exchange’s buybacks, and investor’s psychology anticipation, I believe that the YEX are widely optimistic about market prospects and development potential. The best way embody this is that YEX will rise and distribution of profits also increases. At the same time, we also hope that YEX will continue to launch activities and new strategies to stabilize the price.
I wish the cold winter will pass soon.