The year 2019 was a pivotal moment in the evolution of the cryptocurrency and blockchain industry. From explosive market trends to groundbreaking policy developments, a series of buzzwords captured the spirit of innovation, speculation, and transformation that defined the space. These terms weren’t just jargon—they represented real shifts in technology, finance, and public perception. Let’s revisit the most influential crypto buzzwords of 2019, explore what they meant, and understand their lasting impact.
IE0: Instant Exchange Offerings Take Center Stage
One of the first major trends of 2019 was the rise of IE0, or Instant Exchange Offering. Unlike traditional ICOs (Initial Coin Offerings), IE0 bypassed the fundraising stage entirely—tokens were listed directly on exchanges, often through platforms like Binance Launchpad.
This model gained massive traction when BitTorrent (BTT) launched via Binance Launchpad on January 3, 2019. The $7.2 million token sale sold out in just 18 minutes, setting the tone for the year. The speed and accessibility of IE0 made it a favorite among retail investors, though it also raised concerns about fairness and long-term project viability.
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Platform Tokens: The Rise of Exchange-Based Cryptocurrencies
Platform tokens—native cryptocurrencies issued by exchanges—emerged as one of the most successful asset classes in 2019. These tokens, such as BNB (Binance), HT (Huobi), and MX (MXC), offered utility within their ecosystems, including fee discounts, voting rights, and access to exclusive token sales.
The momentum began in January with the surge in IE0 activity and peaked when MXC’s MX token skyrocketed by 380 times in two months. This phenomenon highlighted investor confidence in exchange-backed assets and demonstrated how platform loyalty could be monetized.
Zero Loss Sharing: Marketing Strategy or Risk Shift?
Zero loss sharing, or "zero分摊," became a popular marketing term among derivatives exchanges. It promised users protection from "loss-sharing" events—where losing traders are forced to cover deficits from failed margin positions.
Huobi Global promoted its "zero loss sharing" model after adjusting its BTC contract parameters on January 25. While this improved user trust, critics argued it merely shifted risk to traders through earlier liquidations. Still, the term became a competitive differentiator in the crowded futures market.
Resonance Mechanism: Innovation or Pyramid Scheme?
The resonance model gained attention in early 2019 through projects like VDS (Value Distributed System). Users could deposit BTC into a "V Pool" and receive VDS tokens through a multi-layered distribution system—up to 12 levels deep.
Within two months, VDS reportedly attracted over 30,000 BTC, with its value surging 40x and briefly ranking among top cryptocurrencies. However, many analysts compared the mechanism to a Ponzi scheme due to its reliance on continuous new investments—a cautionary tale about innovation blurring ethical lines.
Mode Coins: The Speculative Frenzy
Mode coins referred to low-cap cryptocurrencies that surged rapidly due to clever marketing, referral systems, or complex reward structures—often resembling China’s “monster stocks” or meme-driven assets.
A prime example was SHE (Shanlian) in April 2019. Marketed as a "full-industry ecological community," it used a combination of MLM (multi-level marketing) and capital pool tactics to inflate its price nearly 50x in one month—only to crash 70% within three days. These volatile tokens underscored the risks of unchecked speculation.
Staking Economy: Earning Passive Income
The staking economy, or staking economy, gained traction as more blockchain networks adopted Proof-of-Stake (PoS) consensus models. Users could earn rewards by locking up their coins to support network security.
However, the promise of “passive income” came with risks. In June 2019, TokenStore, an app promising monthly returns of 40–80%, vanished with hundreds of millions in user funds. This incident served as a harsh reminder: high yields often come with higher dangers.
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Dutch Auctions: Fair Launch or Price Manipulation?
Dutch auctions, where prices start high and drop until all tokens are sold, were popularized by projects like Algorand (ALGO) in June 2019. Algorand sold 25 million tokens at $2.40 each—48 times its private sale price—amid claims of fairness and decentralization.
While touted as a democratic way to distribute tokens, critics labeled it a “Turing Award-level Ponzi” due to the extreme markup. Still, the model influenced future token distribution strategies across Web3 projects.
Buyback and Burn: Creating Scarcity
To increase token value, many exchanges implemented buyback and burn programs. By repurchasing their native tokens from the market and permanently removing them from circulation, they aimed to create deflationary pressure.
Binance led the charge in July 2019 by burning over 2 million BNB tokens, worth around $37 million at the time. More significantly, Binance announced it would include its team-held BNB reserves in future burns—a move that boosted long-term investor confidence.
DC/EP: China’s Digital Currency Emerges
DC/EP (Digital Currency / Electronic Payment), China’s central bank digital currency (CBDC), became a global talking point in 2019. Unlike decentralized cryptocurrencies, DC/EP is state-backed and designed to replace physical cash.
On August 21, official media including People’s Daily confirmed that China had filed 74 patents related to digital currency. This marked a turning point: a major economy was moving toward digitizing its monetary system—potentially reshaping global finance.
K-Line Optimization: Transparency or Deception?
In September 2019, Binance JEX admitted to "optimizing" K-lines—removing abnormal price spikes during volatile periods. While framed as a user experience improvement, many saw it as data manipulation that obscured true market conditions.
This incident sparked debate over transparency in crypto trading platforms. True decentralization demands accurate data—even when it looks messy.
1024: A Historic Day for Blockchain in China
October 24, or "1024," became legendary after China’s national leadership endorsed blockchain technology as a strategic priority for innovation. Within 12 hours, Bitcoin surged over 40%, and blockchain stocks rallied worldwide.
The day is now celebrated unofficially as “China Blockchain Day,” symbolizing institutional recognition of blockchain’s transformative potential.
AMA: Engagement or Evasion?
AMA (Ask Me Anything) sessions became standard for crypto projects to engage communities. However, many devolved into scripted PR events where tough questions were ignored.
A notorious example was Biss Exchange’s AMA with Guo Hongcai (“Bao Er Ye”) on October 29—followed by the platform going dark the next day due to regulatory issues. It highlighted the gap between hype and accountability.
Soft Exit: When Teams Quietly Leave
Soft exit describes projects where founders officially step back, claiming to “return control to the community,” while effectively abandoning development.
HPB Chain did exactly this on November 10, announcing its core team would leave while keeping the network online. Investors were left holding depreciating assets—a trend that eroded trust in community-governed projects.
DeFi: The Future Begins
DeFi (Decentralized Finance) emerged as one of the most promising trends of late 2019. Built primarily on Ethereum, DeFi enabled permissionless lending, borrowing, and trading.
On November 18, MakerDAO launched multi-collateral DAI, allowing users to back its stablecoin with various assets. DAI supply exceeded $100 million, cementing DeFi’s role as the foundation of open finance.
The First Crypto Stock Goes Public
November 21 marked a milestone when Canaan Creative, the second-largest Bitcoin mining hardware maker, listed on NASDAQ under ticker CAN. Raising $90 million at $9 per ADS, it became the first publicly traded crypto company, bridging traditional capital markets with blockchain innovation.
Frequently Asked Questions (FAQ)
Q: What was the most influential crypto event of 2019?
A: The most impactful moment was on October 24 (“1024”), when China announced strong support for blockchain technology—triggering a global market rally and institutional interest.
Q: Are platform tokens still valuable today?
A: Yes. Leading exchange tokens like BNB continue to offer utility and value through buybacks, ecosystem growth, and staking rewards—especially on secure platforms.
Q: Is staking safe for beginners?
A: Staking can be safe if done through reputable platforms with transparent protocols. Always research risks like lock-up periods and market volatility before investing.
Q: Was DC/EP released in 2019?
A: No. While development accelerated in 2019 with patent filings and policy announcements, DC/EP entered pilot testing later—in 2020.
Q: What happened to mode coins after 2019?
A: Most collapsed quickly due to unsustainable models. However, their legacy lives on in meme coins and speculative trading trends seen in later years.
Q: How did Dutch auctions influence later token sales?
A: They inspired fair launch movements like those seen with Yearn.finance and other DeFi projects aiming for equitable distribution without VC dominance.
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