Despite the emergence of many new technologies in recent years and the successes of globalization, one thing remains unchanged: if something suddenly becomes popular, scammers will find new ways to deceive investors. The way out, as always, is one: try to think with your head.
This also applies to crypto-currency, which is increasingly becoming the target of theft and fraud. The latest scandal in the turn of many is the breaking of the Japanese currency exchange Coincheck, as a result of which hackers received NEM tokens worth more than half a billion dollars. Thus, this is the largest theft of the crypto currency for today.
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President of Coincheck Koichiro Wada (left). The Japanese authorities said on January 29 that they had been subjected to penalties by Crypto-Exchange Coincheck, which lost $ 14 million tokens.
ICO, in which, according to the agency, “offered to retail investors to finance what was served as the world’s first decentralized Bank.”on the and Exchange Commission (SEC) of the USA has recently taken measures to block
Now in the world there is no regulated bank that would directly deal with retail sales or storage of crypto currency. The situation may change when and if regulators find a way to pursue their policy on an unregulated crypto currency market.
And although the idea of the crypto-currency technologies is generally good, the crypto-currencies are not a decentralized bank at all. They are not tied to anything other than software, and it is difficult to understand who trades them and why.that underlies and other
There is also a cult of bitcoin, which explains the irrational enthusiasm that allows its price to grow by hundreds of percent. Here is what Paul Krugman, a New York and Nobel laureate in economics writes :
As in the case of any otherin the financial market, those who do not understand what they are doing will suffer. Here are some excerpts from the SEC’s warning about companies entering the ICO:
- Some companies are not required to file reports with the SEC. They are known as “non-reporting companies”. Investors should be aware of the risks of trading in the shares of such companies, since there is no relevant and accurate information that would allow investors to make an informed investment decision.
- Investors should also conduct their own research and know that information in blogs, social networks and even on the company’s website can be inaccurate and deliberately misleading. Be especially careful with the offers of buying ICO. , including those related to new technologies, such as
- If the issue (security) is registered, you can find information about it (for example, application for registration or “Form S-1”) on the SEC.gov website through the EDGAR search system .
In other words, you have to do your own research. One or more new technologies may make crypto currency a viable alternative to the existing banking system, but it is difficult to say which of them will survive. In the meantime, you need to protect your savings.
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