Foresight News reports that the Beijing Internet Finance Industry Association stated that recently, various digital currencies and related concepts represented by 'stablecoins' have attracted market attention. Some illegal institutions and individuals, under the guise of 'financial innovation', 'blockchain technology', 'digital economy', 'digital assets', etc., take advantage of the public's limited understanding of new financial concepts to issue or speculate on so-called 'virtual currencies', 'digital assets', and 'stablecoin investment projects', promising high returns and inducing the public to invest funds to participate in trading speculation. Such activities have significant illegal fundraising risk characteristics: First, lack of qualifications. These institutions or individuals have not been legally approved or filed by the State Council's financial management department and do not have the legal qualifications to absorb deposits from the public, sell financial products, or issue securities. Second, concept packaging. They use emerging and complex concepts such as 'stablecoins', 'decentralized finance (DeFi)', and 'Web 3.0' for packaging and speculation, deliberately creating information asymmetry to confuse investors. Third, false promises. There is a widespread exaggeration of publicity and false promises, such as 'guaranteed profits', 'high fixed returns', 'capital protection and interest payment', exploiting the public's pursuit of high returns. Fourth, fund pool operation. Their operating model often relies on absorbing funds from new investors to maintain operations or pay returns to earlier investors. Once the capital chain breaks or the project party runs away, investors will face the huge risk of being unable to recover their principal. Fifth, risk spillover. Such activities can easily evolve into illegal fundraising, financial fraud, pyramid schemes, money laundering, and other criminal activities, severely disrupting the economic and financial order, infringing on the property safety of the people, and damaging the foundation of social integrity.

The Beijing Internet Finance Industry Association solemnly reminds and urges consumers: Be sure to recognize the essence and remain highly vigilant against any investment projects that promise high returns and guaranteed principal and interest. Remember that 'high returns are inevitably accompanied by high risks'; before making any investment or financial management decisions, be sure to verify the legitimacy of relevant institutions and products through official channels of the national financial regulatory authorities, and choose licensed and regulated financial institutions. Fully understand the high complexity and volatility of digital currencies such as 'stablecoins' and related innovative concepts, and establish correct monetary concepts and rational investment philosophies. Consciously resist and stay away from any form of virtual currency speculation, illegal token issuance, and unapproved 'digital asset' investment projects to effectively protect personal property safety. If you discover any clues related to illegal fundraising, please report them immediately to the financial regulatory authorities, public security departments, or this association.