Stay away from Crypto Scams
Feb 05, 2018 Posted / 18451 Views
Talking about the current scenario, Virtual tokens are attracting a lot of investors and as it has happened in the past – where there is an investment there is a scam. The biggest and eye-catching cryptocurrency heist till date is the hacking of Bitcoin exchange platform – Coincheck. According to the reports, the incident happened due to the negligence of Coincheck and swindlers acquired more than half a billion dollars. To the incident, the company tweeted that they are working on the security checks to regain the trust of customers and economy.
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Reportedly, United States of America based Security and Exchange Commission(SEC) recently closed down an ICO of a company that claimed to be first ‘decentralized bank’. In an interview with Forbes, the spokesperson of SEC stated that ‘AriseBank’ referred them first of its kind and were allegedly selling various banking products and services using more than 700 cryptocurrencies. Until now no bank has been authorized to hold or directly retail cryptocurrency.
"AriseBank’s sales pitch claimed that it developed an algorithmic trading application that automatically trades in various cryptocurrencies." – SEC
Talking about cryptos and the technology behind them, it can be said that virtual currency is not decentralized rather they are linked to a network only where you can not ascertain about the sender and the receiver.
Recently a novelist in economics stated in New York Times that in last six weeks, Bitcoins has depreciated by 40% of its value. Considering it a currency if it existed in the real world it would have affected economy badly with approx 8000% inflation. This unbound nature of virtual currency attracts investors and manipulates the market.
Noticing the trend of investment in digital currency, SEC has suggested some guidelines for investors in order to protect them from scams and swindlers.
- Some companies are free from filing reports and thus called ‘non-reporting’ companies. Before investing one should consider the risk factor involved as there is no certainty of provided information to be current and accurate.
- Before investing their money, investors should conduct their research and should not rely on Blogs, social networking sites and company’s websites as well as it can be framed to mislead investor to scams. One should invest after conducting entire research based on facts and should be aware of the new technological promotions called ICOs.
- You can find information about all registered ‘offerings’ on ‘SEC.gov’ through ‘EDGAR’.
From all of the above guidelines, it can be concluded that an investor is responsible for his investment and should conduct an in-depth research for being on the safe side. With few amendments, crypto will become part of our banking system but its hard to tell which one would stay in the market. Till then stay aware, stay safe
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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