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How are Taiwan's cryptocurrency floating interest rate products performing in profit-seeking insurance?

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I have done a series of reports on cryptocurrency fixed-term investment products, introducing different types of products globally and providing brief introductions to various products in Taiwan. Additionally, we attempt to clarify the legality of such products in Taiwan.

In Taiwan, in addition to various exchanges launching cryptocurrency fixed-income products, there are also private companies that offer fixed-income products by collecting cryptocurrencies through investment strategies. Some of the more well-known companies among cryptocurrency retail investors include Qifu Investment Consulting, Steaker, and Bincentive.

Since the main products of these private companies involve raising cryptocurrencies and implementing investment strategies to provide fixed or floating returns, they may indeed incur losses due to the market's drastic fluctuations, often causing unrest or skepticism within the investment community. We have gathered recent information on various publicly traded companies in Taiwan for reference.

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Qifu Security Underwriter: Distributing 33% Performance

According to an announcement by Qifu Investment Consulting on July 13th, the "35% annualized return 26-week growth plan" launched on January 13th this year achieved a final annualized return performance of 33% (excluding the thirty percent profit charged by the company). Qifu underwrote the floating-rate product in this non-principal-guaranteed plan.

Benson Sun, the person in charge of the company, stated that due to the current unclear regulations in Taiwan, they will temporarily not launch non-principal-guaranteed floating-rate products in the future. The main products will focus on a stable type with a fixed annualized interest rate of 12%, releasing one plan every 5-7 weeks for a 26-week half-year period.

Steaker: Launches DeFi Liquidity Mining Program

Currently, Steaker still offers floating income programs, including "floating rate plans," "high-interest plans," and the recently launched "DeFi Harvesting Plan." However, high-interest plans are irregularly released. For example, the plan that started on April 7th this year for a six-month period has an estimated annualized return of 30.21%.

Additionally, there is a floating-rate plan with an expected annualized return of 17% (with the company charging a profit of twenty to thirty percent). Particularly, Steaker has joined the DeFi liquidity mining trend and introduced a DeFi Harvesting Plan with an expected annualized return of 20% (this is a floating-rate product with a -5% stop loss). Regarding the uncertainties of DeFi and the skyrocketing Ethereum transaction fees, Steaker stated that they will closely monitor market dynamics and currently have no adjustment plans. Apart from this, Steaker also offers fixed annualized products with an interest rate of 6%.

Bincentive: BinFi Coin Selection

Bincentive's BinFi products did not perform as expected this year. According to previous reports, in the third batch of products, the "Rock" and "Flame" products, the Flame product, which is a leveraged strategy (ten times), resulted in a settlement yield of -92.4% due to lower-than-expected investment performance. Although the company's product information is transparent and does not deceive investors, and the risks of the products were repeatedly emphasized during their launch, a return rate of -92.4% still caused a great stir in the community.

In response to this incident, the official statement mentioned improvements in presenting relevant information and emphasized that in the first and second batches of products, both "Rock" and "Flame" were profitable. For instance, the six-month average profit for "Rock" in the first and second batches was 5%, and the first batch of "Flame" also had a performance of 10.45%. It is worth noting that the "Flame" product allows investors to invest 0.01 BTC per unit for the right to receive 0.1 BTC in future profits, offering high returns but also involving higher risks.

Awareness of Risks in Cryptocurrency Investments

Under current Taiwanese laws, investors have limited protection in disputes arising from cryptocurrency investments. With the fast-changing and highly volatile cryptocurrency market, even though fixed and flexible savings products offer convenience to many investors, the saying "no pain, no gain" applies. In the event of significant market fluctuations, expected returns are still difficult to guarantee, and investors continue to act under the awareness of risks.