Source: pixabay.com

Source: pixabay.com

The cryptoassets market has become since its emergence an opportune space for fraudsters, especially because it is a market that even today is not well known or understood by most people, in this case education in the cryptocurrency exchange market is the key to fight against scams, because in a large percentage these crypto scams are based on ignorance of the use of the mechanisms of exchanges, investment and use of cryptocurrencies. These scams use cryptographic codes that are encrypted in the blocks of transactions to divert people's funds or investment. Another case occurs when hackers decrypt the passwords of the wallets of users of different platforms and manage to empty them and direct investments and funds to other wallets.

Likewise, we find false investments and flashy offers in the cryptocurrency market where you are supposedly offered a very attractive investment package or smart contract where you place your resources in a specific portfolio that in the end does not exist as such. In this case, you have for example the ICO scams Initial Cryptocurrency Offerings these initial offerings assume as a measure of attraction the initial projects of the new tokens that will be released to the market whose value will be backed in the future with that initial investment project, This type of scam is very common because anyone can offer an ICO package without it really existing and there are even cases where the figure of a famous person is used to make the offer more striking, these reach all users through advertising or directly to our emails and networks where easily through the Big Data fraudsters can get our information. The most important thing is to always be attentive and verify before making the transaction or transferring our assets to these investment projects.

Among the crypto scams there are also the P2P exchanges in this case it is a scam where through a fake exchange house the user is instructed to deposit their cryptocurrencies before to receive others of higher value or in this case that are striking forms of investment, in this case the fraudsters disappear with the investment. In the case of public blockchain, which are highly scalable, it has been tried to establish parameters to reduce scams and bifurcations of the system that can generate the loss of confidence in investors.

Source: pixabay.com

Among the outstanding cases in the field of cryptocurrencies is the use of Cloud Mining, in this is cited the remembered company MininMax a platform that supposedly offered its mining services for different cryptocurrencies in Seoul this company requested payments to investors to start work but according to information provided by the company as these were not enough to keep collapsed and administrators were left with $ 250 million for 18.000mil investors from 54 different countries.

Also, there is the fraud of fake exchange rates for this fraudulent exchange houses offer compensation bonuses for deposits or bonuses simply for joining them and then do not allow the withdrawal of user funds here is the case of BitKRX of South Korea, which claimed to be a regulated exchange house and related to the Korean Stock Exchange, which was false.

Fake wallets are another of the most used and famous crypto scams, among those investigated the most remembered and that has become an example of this scam is the MyEtherWallet this was so well designed that even appeared as a google paly store app and managed to embezzle more than 5,500 users before the online store discovered the fraud. In June 2021 another of the big scams was unveiled which was called Africrypt the biggest was in bitcoin made by two South African brothers 3.6 billion dollars in Bircoin owned by the investors of the platform designed by them.

One of the most dramatic scams that the crypto world has experienced this year corresponds to the Great Turkish Scam where even currencies such as Bitcoin and Dogcoin plummeted by 10% this scam consisted in the fact that the Turkish platforms stopped paying investors and its founder fled the country with 1.7 billion dollars.

As can be seen, crypto scams make investors and future investors lose faith in the exchange market and cryptoassets because they consider them to be risky projects that can leave them bankrupt. Another negative consequence of these scams that also become viral news through the networks is that they cause the crypto-assets market to suffer a destabilization by increasing the rate of sales by investors who wish to withdraw their funds from the platforms in this sense causing a collapse in the value of assets that is reflected in losses for large and small investors.

Source: pixabay.com

Regulations from my point of view are not a guarantee that scams will stop happening or that the value to the cryptoassets space will be higher, I consider that at this time the platforms hand in hand with developers are generating internal strategies either through smart contracts or some regulations on investment processes and security of transactions for people to feel safer.

For example, within these systems is the double approval system implemented by some platforms and exchange houses in which only when both parties agree and authorize the transfer or exchange of funds is executed, others are the clearing funds that are also striking because they offer a certain stability when thinking about an investment. Many times the regulations obey more to the economic policies of the country where they originate than to the benefit or security of the investors. The fact is that for all this to become a reality, a deep study of the crypto-assets market is needed and that all people can understand their use and operation in order not to fall into scams.

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