What are the major events in the "black March" cryptocurrency industry?（part 1）

By Willson-D | Willson-D’s BlockChain Channel | 1 Apr 2020

"Black March" left a strong mark in the history of cryptocurrency.

When we review the key nodes that affect the development of cryptocurrency industry in the future, many important events in this month will be mentioned repeatedly.

In this month, we saw the decline of cryptocurrency market and traditional financial market. The U.S. stock market broke four times in the month, and many global stock markets fell into a technical bear market. Bitcoin fell 58% to $3800 from a high of $9100 in the month, and the total value of cryptocurrency market fell nearly 49%.

The collapse of currency price affected many subdivisions of cryptocurrency industry. We can see that in the extreme market, the mining industry, defi and stable currency market are facing storms: multiple mining machines are broken through the cost price, the vulnerability of defi is exposed, and the usdt premium of stable currency is as high as 9.86%.

However, we are also pleased to see that the industry did not issue a question about the bitcoin due to the downturn. On the contrary, practitioners began to think more rationally about the attributes of bitcoin and its value in the financial market. On the other hand, we have also witnessed the efforts made by India and South Korea in promoting the development of cryptocurrency market, which will also provide impetus for the acceleration of maturity of the entire cryptocurrency industry.

At this moment, select the top 10 hot events in the blockchain industry in March to help you quickly understand the great changes in the industry in the past month.

1. U.S. stock meltdown and bitcoin crash

Influenced by the continuous spread of the new crown epidemic and the black swan events such as the oil price war, the traditional financial market and the cryptocurrency market suffered heavy losses.

In the traditional financial market, the U.S. stock economy has broken the circuit for the fifth time in history and the fourth time this month. The stock markets of Thailand, Thailand, the Philippines, South Korea, Pakistan, Indonesia, Brazil and other countries have broken the circuit, and the world has fallen into technical bear markets. In the cryptocurrency market, bitcoin dropped 58% to 3800 US dollars from the peak of 9100 US dollars in the month; the global cryptocurrency market value once fell below 130 billion US dollars, down nearly 49%.

In order to avoid further economic downturn, the Federal Reserve launched a number of quantitative easing policies this month, including reducing the benchmark interest rate to 0.00% - 0.25%, launching the commercial paper financing facility (CPFF), primary dealer credit facility (PDCF), unlimited bond purchase, etc.

2. Several mining machines hit the shutdown price and bitcoin mining difficulty is the second largest decline in history

In the extreme market, the mining market has been impacted. Several mining machines touch the shutdown price, and some mines have to shut down and close down. A large number of miners face a dilemma. Industry insiders same that "from mining machine makers, dealers, miners, mines and even mining pools, the entire mining trade chain is facing nice challenges."

From the data point of view, due to the shutdown of miners, the difficulty of bitcoin mining has been greatly reduced. Btc.com data shows that at around 10:51 on March 26, bitcoin adjusted the mining difficulty to 13.91t at 622944 block height, with a decrease of 15.95%, which is the second largest decrease in bitcoin history, after 18.03% on October 31, 2011.

In this case, the saying of "mine disaster coming" is endless. However, according to Shang Silin, general manager of Mars cloud mine, "large scale mining accidents will not happen. With the adjustment of calculation power and mining difficulty, the mainstream mining machine will still start." In his view, if we look at the value of bitcoin in the medium and long term, the bear market is the entry time for mining, not the bull market.

According to Wu Shuo's blockchain news on March 18, jiangzhuoer, the founder of laibit mining pool, has ordered the latest S19 miner worth tens of millions to bitcontinental, and is expected to deliver goods in late May. Despite the current market downturn, Jiang believes that with the global epidemic under control and bitcoin halved, the price of the currency will pick up in a few months.

3. Defi vulnerability exposure, makerdao auction MKR governance token to repay more than $5 million of bad debts

Due to the sharp fall in eth price on March 12, a large number of loans of makerdao fell below the mortgage threshold, triggering liquidation procedures. The liquidation process is in the form of mortgage auction. Users can obtain the mortgaged Ethereum by bidding for Dai. However, due to the market collapse, some liquidators won the auction of Ethereum mortgage liquidation process with Dai with a price of US $0, which resulted in the outstanding loan debt of US $5 million of makerdao.

In order to repay the "bad debt", makerdao held the "debt auction" of MKR governance token at 22:28 on March 19, Beijing time. The auction activity is open to anyone. Participants need to run the open-source software auction keeper to participate in the auction.

In addition, in order to deal with the zero bidding risk in the process of collateral auction, makerdao further reduces the auction risk by adjusting the auction parameters and adding the circuit breaker mechanism. At the same time, when the market fluctuates violently, the auction of collateral can be suspended so that the liquidators can have a longer time to raise capital and participate in the auction liquidation of collateral.

4. Usdt premium of 9.86%, total market value of tether increased by 22%

On the day of bitcoin's collapse, usdt at one time showed a 9.86% premium, and maintained a positive premium for the next trading day. As of March 30, coin data showed that the positive premium rate of usdt reached 2.08%. In response to the surge of usdt premium, Yang haipo, CEO of viabtc mining pool, said in his micro blog, "many people have a misunderstanding that the high premium of usdt is due to many people entering the market to copy the bottom, but in fact, it's just the opposite because too many people sell for usdt, reducing the high premium caused by the number of usdt circulating in the market."

On the other hand, according to beep news, "according to incomplete statistics, since March 12, usdt has issued at least 18 additional times in half a month, with an average of 1.1 additional times per day. According to coingecko, the market value of usdt is more than $4.2 billion, up 22% in a month, and tether is printing money faster than the Federal Reserve.

5.New development of compensation case of Mt. GOx exchange

On March 25, according to trustnodes, on the eve of the annual general meeting of creditors held by Mt. GOx (Mentougou) exchange, relevant documents revealed the exchange's plan to pay debts. The information shows that creditors can choose the form of compensation they receive, for example, they can choose to receive compensation in a mixture of Fiat / Fiat, bitcoin and bitcoin cash.

Most creditors are strongly opposed to this because they mostly want to be paid through bitcoin. Alex Ortega, managing director of Iverson capital group, said many creditors were unhappy with the draft liquidation compensation and believed that the trustee should not be allowed to sell bitcoin to settle the French currency debt first.

At present, the submission time of Mt. GOx settlement compensation scheme has been extended again from March 31 to July 1. Previously, the exchange's compensation plan was planned to be submitted in October last year and later extended to March 31 this year.