Steemit Crypto Academy |Season 3 week 6 - Crypto Scams and how to avoid them. @dulce2
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This is my task on crypto scams and the regulation of cryptocurrencies, you are welcome and I hope that it will serve you a lot to take into account each point of this task to be cautious in your next investment.
1. What are Crypto scams?
Cryptographic scams are regularly activities or deception methods commonly used to commit criminal activities on or off platforms for the exchange or purchase and sale of cryptocurrencies, these deception methods catch one or many investors making them give at their own will or without having knowledge of witnessing a scam.
There are many deception methods that can be presented in a scam but the main ones will be mentioned below.
1. Theft by fraudulent websites
2. Cheating on business opportunities.
3. Theft by fake applications.
In addition, even investing in a legal but centralized project is afraid of being a victim of scams by an internal hack.
Knowing that someone has lost a lot of money in a scam is a very bad thing, because many times it is savings that they have worked on all their life.
The main victims of scams, are in the area of social networks, fake web pages or a bad investment made through an ico, this directs us only to one word, (little wisdom in the cryptographic part), when a person You are ignorant of many aspects of crypto and you have money but you do not know where to invest, many times you fall into the hands of scammers because of their misleading advertising and the thousands of great opportunities they offer.
There is currently a large scope for cryptocurrency scams around the world, and now more than ever that a large part of the world's population is entering the cryptocurrency market, more scams are being seen.
Make your research on any Cryptocurrency scam. (Attach a few references to the news surrounding that scam crypto project).
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It was inaugurated in 2010 in Shibuya Tokyo as a cryptocurrency exchange or cryptocurrency exchanger for Fiat currencies, since it previously provided services only for closed exchanges in the game The Gatering, in 2010 its programmer Jed McCaleb decided to invest in the area cryptocurrency because it was the topic at the time as the crypto market was bullish across Tokyo.
In 2011 his Exchange was sold to the French programmer Mark Karpeles who would later become CEO of the exchange.
Since then, due to the reliability it generated, it managed to retain in its market around 127 thousand users from all over the world, who made exchanges in its Exchange.
In that same year, its system was compromised when a group of hackers saw an opportunity to enter the system through false credentials, managing to acquire the private key, which cost the Exchange hundreds of bitcoins, with a value of 8.7 million $, in that year the btc had a value of $ 17 within the Exchange and happened to cost only pennies on the dollar.
In that same year, the security measures on the platform were increased, but in February 2014, without prior notice, about 850 thousand bitcoins disappeared, where thousands of users within the platform were left with their accounts blank, the CEO of the Exchange announced about the possible theft and alerted investors.
A short time later a total of 200 thousand bitcoins was found in a hardware, where it was made public but investors were still waiting on the remaining 650 thousand bitcoins that were missing, a short time later users had login problems, slowness problems and withdrawal of your cryptocurrencies within the Exchange.
As a result that days later, the Exchange suspended its operations, and the Exchange was closed, the CEO of the exchange announced his resignation and deleted all his official accounts from social networks, which caused thousands of people around the world to be scammed. .
Mt. Gox exchange hack victims have until October to vote on repayment plan
Mt. Gox exchange hack victims have until October to vote on repayment plan.
Victims of the iconic Mt. Gox exchange robbery might have a chance to get some funding after all these years. But more than 50% will have to vote for the severance plan to take place.
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There were so many complaints before the Japanese court, that the CEO of the Exchange was captured and sentenced to 10 years in prison for improper manipulation of funds,
where shortly after he was released on bail, and months later he was found not guilty of all charges . But many allege that an internal complicity of both CEO Mark Karpeles and the first owner Jed McCaleb.
The exchange Mt. Gox presented a plan to return 150,000 bitcoins to victims of the hack, The release of 150.00 bitcoins could affect the price of the asset.
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2. To what extent have Crypto scams affected the Crypto space?
While more cases of scams are exposed, more regulations are placed, many are given by regulating their use, in many countries they are legal and in others cryptocurrencies are not allowed, but in legal countries, they are regulated under entities and entities financial institutions in charge of supervising and maintaining order in a large part of the platforms in those countries, in itself without a doubt is a very good thing because it largely avoids scams by fraudulent entities.
Apart from this we see scammers scamming in many countries and fleeing to countries that are not legal or tax havens that are free to do business with stolen money, in addition, this greatly affects the market, when a large flow of cryptocurrencies is negotiated the volatility of the cryptocurrency is affected by the sale of great magnitude.
Due to scams, commercial psychology is being affected, when false news spreads through social networks, many investors find themselves wondering whether or not it is a scam, because history has thrown a different truth, this makes new cryptocurrencies or those that have an initial rank, it is very difficult to take value because of their remote origin and false news.
In addition, many of these scams greatly influence the market at the level that a large flow of cryptocurrency is injected and this causes a certain percentage stolen to manipulate the value of the cryptocurrency, when carrying out operations with it, but this whole issue is very important, because many people are affected by being scammed but at the same time they learn to expect caution for their next investment.
3. Will regulations in Crypto add value to the Crypto space?
Many of the cryptocurrency entities have been regulated by the securities commissions of each country that these are legally legal, especially the centralized entities that have physical agencies in cities and the finances of thousands of people depend on them, for this reason especially states United States and Asia, there are commissions that investigate each of the cryptographic entities, this in order to avoid manipulation in the market and prevent a cryptocurrency from running financial risk.
We have seen throughout history that regulations lower the value of cryptocurrencies, because many people are used to conducting free negotiations without regulations, especially that no one has the power to manipulate investments.
But the cryptocurrency market is changing more and more and for this reason, more and more we will be adapting to the regulations exposed by the commissions of each country, this will help the cryptocurrency reach a point of equilibrium and on the cryptographic system and the financial system, since it gives users a certain level of credibility and control over their investments, and if something happens on one of the platforms, it has to respond with the payment of each of the stolen crypto assets.
Conclusión.
I really liked this class, it gave a great example about the precautions that we must bear in mind before investing, in all cryptographic activity on the network a scam may be behind, that is why we must be in the eye of those small details, the regulations each day they are changing in the cryptographic space but more and more investors adapt more, I think that in the future we will have a very clean and very safe cryptocurrency market, thanks for reading my work @yohan2on, it was incredible.
Hi @dulce2
Thanks for participating in the Steemit Crypto Academy
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Fairly done. Thanks for taking the time to learn about the various forms of Crypto scams. I need you to research on Crypto scam projects like Onecoin, Bitconnect, Pincoin..etc Otherwise, thanks for the effort.