Hong Kong strikes hard! Qian Fenglei's stablecoin empire collapses, your 'principal-protected' investment is on the road to zero
"When stablecoins begin to become 'unstable', the thunder in the crypto world has always been a silent explosion!"
Core of the incident: Hong Kong Securities and Futures Commission + Police joint action, stablecoin project suspected of 'selling investment products without a license'
According to Caixin's revelations, the stablecoin investment and financing project under Qian Fenglei has been targeted by Hong Kong regulatory authorities for allegedly selling unapproved collective investment schemes to the public, in simple terms, it is 'operating investment without a license'! The Hong Kong Securities and Futures Commission, in collaboration with the police, directly froze the project's assets, with the amount involved possibly exceeding 1 billion HKD.
Personal opinion: Stablecoins are not a 'lawless land', this operation had long been foreseen
Compliance alarm sounded:
Stablecoins have always lurked in a regulatory gray area, but Hong Kong's new regulations this year clearly state that any cryptocurrency project involving public funds must be licensed! The investigation of Qian Fenglei's project precisely indicates that the model of 'boarding first and paying later' will not work in 2025.
Historical case comparison:
Before the collapse of Terra in 2023, its pegged stablecoin UST was similarly questioned for 'lack of transparency in the fund pool', ultimately resulting in a disaster that evaporated 40 billion USD. Although Qian Fenglei's project is not directly related to this disaster, the essence of 'unregulated collective investment' is akin to UST, attracting retail investors with high yield promises, while the flow of funds remains a mystery.
Qian Fenglei's 'gray label':
As a well-known businessman who once participated in Ant Group's IPO, Qian Fenglei's business map has always been controversial. This involvement in the stablecoin project raises suspicions of using personal credibility to endorse a 'funding scheme', making it difficult for ordinary investors to discern authenticity.
Must-read for investors: How many traps have you stepped into with stablecoins?
Misconception: 'Stablecoin = principal-protected'?
The 'stability' of stablecoins only refers to their peg to fiat currency, but if project parties misuse reserve funds for trading, a crash could still lead to zero, referencing the 2022 UST de-pegging event. The Qian Fenglei incident proves that celebrity endorsements do not equal project compliance, and may even become a 'scythe for harvesting retail investors'.
Conclusion: Is your stablecoin really stable?
This investigation in Hong Kong has torn away the 'fig leaf' of the stablecoin market; the so-called 'stability' may just be an illusion before a disaster!
Interactive topic:
Have you ever bought stablecoin investments? Have you stepped into any traps? Share your story in the comments section
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