Cryptocurrency: scams and scams jumped 600%

Cryptocurrency scams and scams jumped 600

The crooks have found a new playing field, the world of cryptocurrencies, very little regulated, allows them to make juicy and illegal transactions that a report has just brought to light. Judge for yourself, in a single year, 600% of cryptocurrency losses are due to theft and scams between 2020 and 2021.

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[EN VIDÉO] How does cryptocurrency work?
Like Bitcoin, today there are more than 6,000 cryptocurrencies in the world. These currencies are based on blockchain technology.

The explosion of cryptocurrency in the year 2020 coincides with a new momentum fraud in an environment that is still very poorly controlled. a Elliptic report gives worrying figures with a more than 600% increase in cryptocurrency losses due to theft or scams between 2020 and 2021. And this is the trend of the moment in theuniverse crypto because new cryptocurrencies come out every day, all trying to make their hole and exist in a hyper competitive and profitable universe.

Unfortunately, for many investors, a certain amount of cryptoassets are actually scams disguised to steal themoney invested. Most of these scams start from a hot trend, such as a series, to give a relationship of trust or in any case knowledge.

We can cite as an example the cryptocurrency ” Squid Game “. As long as we were interested, it was clear that this investment had theair particularly obscure. A site riddled with mistakes, prestigious partnerships with Netflix, Microsoft or the support ofElon musk. In a matter of days, the cryptocurrency surged to just over $ 2,800 before seeing the creators soar with the money and drop its value to … 0. A cryptocurrency named “Mando” for the series The Mandalorian has received the approval of several American “tiktokers”. The result is another scam and the investments of hundreds of American students in the hands of the thief.

Gold rush and perfect playground for crooks

In August, the “JJR Token” was launched in an attempt to attract fans of Tolkien’s work. The beneficiaries succeeded in obtaining the removal of the cryptocurrency as well as that of its site. Every day, rather creative crooks, admittedly, are trying to take advantage of the lack of regulation ofecosystem crypto. The Gold Rush does not cause much sentiment among the ranks of the most vicious. Thanks to the decentralization of financial transactions – understand the absence of a bank – the traditional financial systems could be redefined allowing better financial inclusion for the unbanked while reducing the cost of daily transactions. Unfortunately, abuses are rife at the moment and benefit money launderers more than anything else.

The data analytics company blockchain Elliptic gives numbers in new report. According to the company, losses due to theft and crime on decentralized platforms have been valued at more than $ 10.5 billion since the start of the year. A substantial increase of 600% in one year.

The DeFi ecosystem is an incredibly exciting and evolving space, with innovations in financial services that occur at the speed of light, Tom Robinson, chief scientist at Elliptic, said in the report. This attracts large amounts of capital to projects that are not always robust or well tested. Criminal actors saw the opportunity to exploit this. “

the need for regulation is clearly felt in the universe. For crooks, it is still too easy to recover colossal sums. While they basically don’t risk much, most of these projects are completely anonymous – or with fraudulent identities – and the majority of investors don’t even take the time to consider the merits of the project. He only sees profitability through the numbers and rising curves at the speed of the light.

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