Since they are reborn, they must be supported by the school beauties.

Chapter 165 How could the price increase so much?

With photos showing real money being distributed, Renren.com became a god-like presence in the minds of college students throughout Jiangcheng.

It's fun, easy to use, free, and incredibly generous.

This isn't building a website, this is clearly doing charity.

Chen Cheng was also very confident.

Yesterday we acquired tens of thousands of new users at a cost of only a few thousand yuan, which translates to a mere ten cents per user.

This rounding is equivalent to getting it for free.

For later internet companies in their startup phase, the cost of activating a single user was at least a few dollars, and for e-commerce and social products, it could even be tens of dollars.

Compared to that, what is a penny?

Moreover, Chen Cheng had the confidence to back it up.

The rate at which money is being burned is not particularly fast; it's definitely not as fast as the rate at which taxi license fees are increasing.

As he predicted, the people of Wenzhou went on a killing spree that afternoon.

At a price of 52,000, it's already difficult to acquire many quotas.

Many people feel that the price of this indicator has risen so fast that selling now would result in a huge loss, so most people have decided to hold on and wait and see.

As a result, Wenzhou residents raised prices several times that afternoon in order to drive up prices and attract more buyers.

Nobody's selling it for 52,000, right?
Fifty-three thousand!
Even at 53,000, no one is selling it, right?

Fifty-four thousand? Forget it, let's just go for fifty-five thousand!
Even though most people hold onto their shares, as prices continue to rise, some savvy investors eventually realize that the peak has been reached.

So the people of Wenzhou didn't work for nothing that afternoon; when the price reached 55,000, they bought dozens more vehicle license plates.

Before the vehicle management office closed, some locals realized that taxi license plates were likely to be speculated on by out-of-towners, so they rushed in to ride in and make a quick buck.

In order to gain leverage, they set the price even higher than that of the Wenzhou people, and the actual transaction price reached around 56,000.

The people of Wenzhou now have competitors.

But they weren't worried at all; on the contrary, the emergence of competitors excited them even more.

Without competitors, their hype is just a castle in the air, destined to collapse sooner or later.

Competitors are there to help them make money.

From now on, every retail investor who chases the high prices will be harvested as韭菜 (a metaphor for easily exploited investors) by the people of Wenzhou.

The difference is that some people here are able to get a taste of the good fortune by entering and leaving at the right time, while most others are kind-hearted people who come running in with the meat to treat others.

For Wenzhou residents, they have already acquired nearly a thousand shares at low prices, which forms the basis for their profits from this speculation.

From now on, they will aggressively drive up the price and accumulate shares as they go. Even if the cost of the shares increases, their actual profits will continue to grow based on these nearly a thousand low-priced shares.

If we can reach 200,000, with these nearly 1,000 targets, and each one earns 150,000, then everyone will have earned over 100 million.
If they can acquire another thousand quotas in the price range of 50,000 to over 100,000, then those thousand quotas would generate a profit of tens of millions.

Finally, if everything goes smoothly, these Wencheng residents who banded together to speculate on indicators in Jiangcheng could make a total profit of over 200 million yuan.

When the scalper sent Chen Cheng the price of 56,000 yuan via text message, Chen Cheng was not surprised at all.

At the speed of the previous life, the price would reach over 200,000 in just over a month.

Once it surpasses 200,000, the index price will likely consolidate in the 200,000 range for a period of time.

Chen Cheng didn't quite understand this in his previous life, but now, based on his analysis, the sideways trading period should be a phase in which Wencheng people slowly unload their shares.

Once they enter the shipping phase, they have two options: either ship aggressively or ship slowly.

Aggressive selling can generate quick returns, but it can also lead to rapid price drops. A few hundred indicators released in a single day can cause prices to plummet significantly.

Although slow distribution is slower, it allows for a subtle and gradual exchange of shares, maintaining the price from falling while distributing shares to buyers in a distributed manner.

Unlike the stock market, retail investors cannot see the specific details of share turnover or the flow of funds by major players in this type of trading.

While they continued to buy into the indicator during the sideways movement, the indicator had actually already undergone a change of hands.

However, the people of Wencheng were not so lucky in their previous lives.

The price of the indicator was quickly driven down by a policy.

That policy was to reduce the starting price from eight yuan to three yuan.

This immediately raised serious questions about the revenue potential of taxis in Jiangcheng, and the price of license plates also dropped accordingly.

When SARS hit, the price plummeted to 30,000.

Therefore, Chen Cheng warned himself again that he must not be greedy for chasing high prices and must not wait until the people of Wencheng start selling before selling, otherwise he would easily be trampled by the people of Wencheng.

Before reaching 200,000, all funds must be cleared out.
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After the afternoon classes ended, Chen Cheng went to the electronics market and purchased a batch of office desks, chairs, computers, and network equipment.

The internet is now connected on the second floor of the Sichuan restaurant. Chen Cheng plans to have the equipment delivered and installed by the supplier tomorrow morning, and hold the first employee meeting at the startup base tomorrow noon.

Yan Chengbin, who lives far away in southern Jiangsu, is not only keeping track of his daughter's recent activities, but also paying attention to the prices in the taxi market in Jiangcheng.

Starting yesterday, he had his subordinates inquire about the price of the day's target transaction before dinner every day, wanting to see if Chen Cheng's all-in bet on this thing had any chance of making money.

Yesterday, Chen Cheng bought forty units in one go, but it didn't cause any market fluctuations. The Wenzhou people who followed suit and rushed in to buy at low prices also didn't try to drive up the price in order to get as many low-priced shares as possible.

The market only started trading this morning.

Therefore, Yan Chengbin did not take the price feedback of 46,500 yuan he received yesterday seriously.

I just got home today when my subordinate called to report: "Chairman Yan, the price of taxi license plates in Jiangcheng has reached 56,000 today."

"Oh."

As Yan Chengbin entered the house, he took off his trench coat and handed it to the housekeeper, saying casually, "It's dropped another five hundred since yesterday."

The person opposite carefully reminded him: "Mr. Yan, it's 56,000, not 46,000. The last transaction price before the vehicle management office closed yesterday afternoon was 46,500."

"What did you say?"

Yan Chengbin was stunned and couldn't come to his senses for a moment.

The other party repeated: "The last transaction price before the vehicle management office closed today was 56,000, which is 9,000 more than the same time yesterday."

"I rely on!"

Yan Chengbin looked incredulous: "What kind of medicine did you take to make your price rise so fast? More than 20% in one day?"

The other party explained, "We inquired and found out that a group of people from Wencheng came yesterday. After Chen Cheng and the young lady finished collecting those forty quotas, the people from Wencheng started collecting quotas on a large scale. Today, the price jumped directly to 48,000, and it has been the people from Wencheng who have been constantly raising the price."

Yan Chengbin's expression was extremely solemn: "Is this kid some kind of fortune teller? How come the speculators from Wencheng arrived just as he invested all his money?"

After saying that, without waiting for a reply, he instructed, "Continue to follow up. Starting tomorrow, report to me twice a day, once at noon and once in the afternoon."

"Okay, Mr. Yan."

Yan Chengbin hung up the phone and hurriedly prepared to go upstairs to find his wife, Chen Min.

Chen Min happened to hear him come back, so she came out of the room to greet him. Seeing him running upstairs, she quickly told him, "Don't run up the stairs. It's bad for your heart and knees. You have to be more careful as you get older."

Yan Chengbin looked up at her and said excitedly, "The number of taxi licenses in Jiangcheng has increased!"

Chen Min laughed and said, "What's so strange about the price going up? Chen Cheng himself bought forty in one day, so the market has to give some feedback."

After saying that, he asked curiously, "How much did it go up?"

Yan Chengbin uttered three words: "Nine thousand five."

"Take the young master?!"

Chen Min was also stunned by the number. She originally thought that since Chen Cheng bought forty indicators in one go yesterday, even if the market was stagnant, it would give some feedback today. She thought that if each indicator rose by a few hundred yuan, there would always be a chance.

However, an increase of 9,500 is simply unbelievable; it's clearly impossible to achieve with just forty indicators.

She asked in great surprise, "How can this thing have increased in price so much?"

Yan Chengbin said, "The speculators from Wencheng went there, arriving right after Chen Cheng. Chen Cheng had just finished building his position when they came to carry him away. Isn't that a coincidence?"

Chen Min nodded, frowning as she said, "This is too coincidental. Does he possess some kind of divine foresight?"

At this point, he started calculating again: "Chen Cheng now has eighty quotas, and the price of his first forty is even lower, so doesn't that mean he already has a floating profit of eight hundred thousand?"

"Correct."

Yan Chengbin reminded her: "You need to know that the market has only been going on for one day. If it can rise so much in just one day, it could double in a few more days."

Chen Min's expression became even more serious: "In that case, the profit would be four million."

Then, she quickly asked Yan Chengbin, "Under normal circumstances, how much do people in Wencheng usually drive up the price?"

Yan Chengbin thought for a moment and said, "At least double, double is the minimum."

Chen Min was startled: "Double the amount, then Chen Cheng could potentially earn eight million, and if it's even higher, it might break ten million!"

Yan Chengbin nodded and said with admiration, "The younger generation is truly formidable; they made such a big bet in one go."

Chen Min asked, puzzled, "How can he keep such precise control of time?"

Yan Chengbin was also curious about this. After thinking for a moment, he said seriously, "This must be because he has a keen sense of smell. Didn't you hear what Xuanxuan said before? He discovered this business opportunity while chatting with taxi drivers. He must have felt that the price of taxi license plates in Jiangcheng was underestimated."

“As long as the price is at a level that is undervalued by the market, it is likely to be a good investment target. It just so happens that the people of Wencheng are in this business. They will definitely select suitable speculative markets across the country. So, like Chen Cheng, they also found that the market in Jiangcheng is undervalued and has a lot of room for operation.”

"Great minds think alike."

Chen Min also felt that her husband's analysis was the most reasonable explanation, and couldn't help but sigh, "It seems that I really underestimated this kid before."

As the two were chatting, Yan Chengbin's phone suddenly rang. He looked down and saw that it was his daughter calling.

He quickly greeted his wife and then pressed the answer button.

On the other end of the phone, Yan Ruoxuan asked sweetly, "Dad, can I ask you for a favor?"

Yan Chengbin's heart skipped a beat: "Xuanxuan, you're not going to borrow money again, are you?"

Yan Ruoxuan quickly clarified: "No, no, I don't need money anymore. I just want Dad to help me promote a website at the company. Ideally, all your company's employees should register and follow me on the website."

"Oh, and by the way, remember to tell them that after registering, they should search for my name and follow me as the first person they see. Only then will they be considered users I brought in!"

(End of this chapter)