Crypto Academy / Season 3 / Week 6 - Homework Post for @yohan2on || Scams in The Crypto Space

The lesson brings up the concept of Crypto scams including its types and measures that could end in avoiding the scams alternatively. I hope to express my understanding of the lesson through my assignment below

What are Crypto scams?

Make your research on any Cryptocurrency scam.

In the presence of the digital world we are into today, we see crypto currencies to be a huge source of income, benefiting several people institutions and the society at large.
This aspect of currency holdings, involves rise and drop in values of assets but majorly sees more profit than losses and so some set of individuals would want to maliciously take advantage of crypto currency holders through scam activities which bring up the concept of "Crypto Scams".

Crypto Scams could be defined, as the malicious activities of individuals, scammers through fake applications, websites, emails etc geared towards depriving crypto currency holders /traders of their assets unwillingly.

This is better explained as an undercover plan and action taken by hackers to implement scams on Crypto users and in the process, taking their crypto coins.

This is a development that has been taken up since there is progress in the crypto market and most people are desperate to level up their crypto assets and so the scammers, hide their activities under the cover of normal crypto activities like :The ICOs,(Initial Coin Offerings), and manipulation of original URL addresses to a point where its difficult to be discovered by the users who falk victim to them

We understand that there are several forms, that the scams are implemented with which include :fake websites and phishing sites which involve redirection of users to scam sites where they give out their delicate information and are stripped of their assets, Email scams which that possess linking trails to the scam points and Scam Apps that are still used for the process.
There are further more, disadvantages to this Crypto Scams as :

• The crypto Scams, deprive legitimate traders and crypto currency users of their hard earned crypto currencies bringing regrets to the traders

• Secondly victims who have invested a lot in this crypto assets and lose them in the process, find it hard to trust blockchain activities anymore

• We are doing to be considering a major case of a crypto scam and ill be talking on a Bitcoin scam issue that occured in July 2020 which would not be forgotten in a hurry.
  The basis of this scam, was that hackers, managed to creep into Twitter's administrative system and manipulated the account of notable Companies, entrepreneurs and public figures like : Warren Buffett, Elon Musk, Floyd Mayweather including the almighty Apple and Uber and tweeted that Bitcoin funds that were sent to the blockchain address that was provided on the Twitter accounts would be doubled and sent back as a charity move.
  Within minutes, millions of dollars worth of Bitcoin was sent to the address and the victims upon not seeing the doubled results, begun to tweet as to, asking why before a tweet from the Twitter's CEO Jack Dorsey brought it to knowledge that it was a hack and SCAM. It's true that a young UK citizen was rumored to be the perpetrator of the acts but no funds, were given back

To what extent have Crypto scams affected the Crypto space?

I'll be explaining in this part of the assignment, how crypto scams have affected the crypto space.
Firstly we should understand that irrespective of the fact that the Crypto currency means to do a world of good to its users, the impact of scams would be detrimental as there would be less trust and demotion of the values the assets have to offer

• Firstly the effect of these scams are seen to affect the crypto space of country-relations with the crypto assets ie countries tend to reduce their assent given when it comes to the use of these cryptocurrencies
  For example due to the involvements of several scams in Nigeria, the use of the legal tender, naira has been prohibited in the performing of crypto currencies transactions and so its a huge minus to the Cryptocurrency factors ie people who feel that using it is illegal or don't have the stress to follow the rigorouss steps involved in its transactions
  Another example too is China who has made crypto currency transactions illegal too and its rumored that the huge loss in market cap could be responsible for the reduced prices in crypto assets value. All this are due to the effects of crypto scam globally

• Secondly its a discouragement to up coming traders and also makes it difficult to trust the actual brokers, websites etc since a victim of cryptocurrency scam would rarely involve in another crypto activity no matter how legitimate it would look like.
  We should also see that it would affect local exchange rates with respect to the relative standards of the assets

Will regulations in Crypto add value to the Crypto space?

Regulations, in the crypto will utmostly add value to the crypto space in the sense that :

• There would be more enlightenment and knowledge of scam sites and avoiding of them :
  When there are regulations made in crypto, and they are cyber installed, there would be blockage /anti-scam apps following the crypto rules meant to avoid crypto Scams.

• Also there would be a drastic reduction in scam activities at least since there would be instillation of fear and awareness to scammers about the knowledge of crypto users of the regulations which would make them no more fall victims to the crypto Scams