China Rare Earth Group’s nuclear-level statement exploded the cryptocurrency circle!
The official has categorically denied any involvement in any "rare earth RMB stablecoin", which is tantamount to declaring that all digital currency projects on the market under the banner of "national team rare earths" are all scams, air coins, and pig-killing schemes under the guise of such names!
Rumors of rare earth yuan trading have caused a stir in the cryptocurrency market! The central bank has stepped in to regulate the market, putting a damper on the multi-billion dollar speculation bubble.
The cryptocurrency world is in turmoil tonight! A statement released by China Rare Earth Group, like a bombshell, has sent shockwaves through the crypto market: "We have never collaborated with any institution on the rare earth RMB stablecoin."
Following the announcement, related cryptocurrencies plummeted. Some public blockchain tokens (such as mining chains and resource-based tokens), previously hyped due to their "rare earth" backing, saw their prices plummet by over 40% within 10 minutes. Contract liquidations exceeded $320 million, and many retail investors suffered heavy losses due to leveraged trading.
Why is this incident so significant? The truth behind it is worth noting:
National strategic resources are being exploited: Rare earths are crucial to the military and high-tech industries, and China controls over 60% of the global supply chain. Some market makers are exploiting the concept of "rare earth yuan" to create the illusion of sudden wealth, which is essentially a malicious overdraft of national credit.
The Central Bank's clear stance on the Digital Yuan (DCEP): China Rare Earth Group's statement is seen as an official move to completely dismantle "wild stablecoins." Any attempt to circumvent the central bank and privately issue a "RMB-pegged currency" will be subject to regulatory oversight.
In fact, there were already signs that the market maker was running away. On-chain data showed that a mysterious whale address had continuously transferred 180 million "rare earth concept coins" to the exchange 72 hours before the announcement was released, which was clearly an insider sale!
Next, the market may face a series of chain reactions:
Altcoins backed by “resources” may collapse across the board: all tokens that capitalize on the popularity of physical resources, such as lithium, tungsten, and gold, may face indiscriminate sell-offs.
The regulatory storm for stablecoins may escalate: the United States, the European Union, and others may follow suit, and the global crackdown on "non-compliant stablecoins" will intensify.
The process of DCEP going overseas is expected to accelerate: China is demonstrating through practical actions that the promotion of RMB internationalization only recognizes "official channels"!
How should retail investors respond? Remember these three principles:
Clear all "resource concept air coins" immediately: the dealer has withdrawn, don't harbor illusions and wait for it to return to zero.
You can turn to relatively compliant targets such as BTC and ETH: Against the backdrop of global liquidity fluctuations, mainstream currencies have more safe-haven properties.
Pay close attention to the dynamics of the central bank's digital currency: When the DCEP cross-border settlement pilot is expanded, it may bring real market opportunities!
Market volatility? Pay attention to industry trends and make rational decisions to survive!
