Since cryptocurrencies broke into the mainstream, it’s always one negative thing after the other as critics and cynics have tirelessly tried to bury them. Cryptos have been labeled a scam, a bubble, a fraud, a phase and all sort of negative comments have been passed about it, including many notable figures in the world of finance.
Cryptocurrencies, regardless of this negative energy around have defied all odds and continue to change the world of finance. Although cryptos, just as a million other thing, are not perfect, naysayers have resorted to using their many flaws against them each passing day.
Public perception and acceptance are something cryptos have to work to achieve and all of that is as a result of the numerous problems, arising each day because of them.
Public cynicism to cryptos can be attributed to a lot of things, however, recent studies have found out that, cryptocurrency fraud, is the leading cause. Cryptos have always been vulnerable to fraud and scam which has contributed to the rise of public distrust for them. Cryptos have become a prime target for scammers and hackers because of their decentralized system.
Crypto fraud and scams have been around for quite some time, with hackers trying to take advantage of sloppy investors every day. However, the rate at which crypto scams has risen during the summer is unprecedented.
Globally, crypto exchanges and investors have seen over thousands of theft this year and this has prompted the attention of critics, to further embark on their journey of trying to sink cryptos. Investors are lured away by phishing emails, social media scams and a promise of huge returns on investments.
Reports I the UK suggests that over 203 cases of crypto scams were confirmed across the country in the summer of this year alone, causing them over $2.54 million in debt. Additional research shows that, between June and July this year, crypto investors in the UK reported losing exactly 10,095 GBP per individual.
With this series of troubling events which unfolded, public distrust of cryptos went up to the point where authorities had to step in and warn the public of fraudsters. Many UK citizens even took to social media to bash cryptos and express their disappointment in them, calling for investors to pull out their monies and invest in something ‘real’.
Crypto fraud is something which will be around for some time, so far as the crypto market continues to thrive, but in order to try and curb this situation, investors should be very careful and always know what it is they are doing, to avoid falling victims to these fraudsters.
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