Cryptocurrency can be baffling for many when they see it as a store of value or for trading. It does not follow the normal rules and laws of the economy, except for one supply-and-demand law. The crypto market has its own sets of rules and regulations, which was one of the prime reasons to survive when the entire world was engulfed in a pandemic.
We, at Financial Money Recovery Specialists, aim to educate our readers to avoid traps within the crypto space should they wish to experience and make substantial profits in it.
What makes cryptocurrency unique?
Unlike the traditional financial markets that revolve around PEST (Political, Environment, Social, and Technological) that determines the appreciation and depreciation of the underlying assets, the crypto market is highly volatile.
The price of a single crypto may appreciate or depreciate 1000X within a matter of a few seconds. This high and unstable price movement within the crypto market is what attracts many to take a chance to make substantial amounts of profit.
As there are chances to make profits, so are there losses if not interpreted correctly.
Online Trends Affecting Cryptocurrency
As we have already mentioned, cryptocurrency has its own rules and laws that are responsible for the price fluctuation in the crypto market. It can be challenging for some to interpret and respond to the news that is currently running on the internet.
It has been observed that news and comments regarding cryptos on the internet play a major role in price fluctuations. Any celebrity comments or news regarding crypto technology are responsible for the price fluctuation.
Thus, any online trend regarding the crypto industry or cryptocurrency plays a vital role that can appreciate or depreciate the price by 1000X.
Online Traps Affecting Cryptocurrency
Although the internet is a good source of information, reaching several countries across the world, it can also create havoc if the news is fake. Fake news can cause a huge disruption within the crypto market. Since any message or comment by a celebrity on the internet can fluctuate the price of the cryptocurrency, it can be a recipe for disaster.
There are several instances where social media celebrities have rug-pulled or pump-and-dumped their audience and fanbase. In recent years, there has been a massive explosion in online crypto scams.
How does it impact the end-user, mostly the crypto users?
Crypto transactions are immutable, so recovering or reversing any crypto transactions is next to impossible. It is not that you cannot recover them, but as a crypto user, you may not have the necessary hardware or software. Again, you need to be on the right side of the law while recovering them. There are a lot of things to consider while recovering crypto assets.
Scammers know this fact, and that’s the reason why many indulge in such activities.
How do crypto scams perpetuate?
Everyone wishes to have a huge amount of wealth to upgrade their lifestyle, and their daytime job can only provide a limited amount of funds. Many live from paycheck to paycheck and find themselves in financial burden. And these are the same crowds that fall for crypto scams.
Whether impersonating an online love interest or offering bogus crypto investments, scammers will push the already financially burdened victims into further financial chaos.
Many social media influencers with no financial background will preach to their audience about obscure cryptos that are not trending in the crypto market. They will recommend these cryptos through fake promises that the price of that crypto will appreciate.
They use a pump-and-dump scheme to artificially inflate its price. In the end, these scammers will sell off their crypto holdings only to leave their audience with worthless cryptos.
There have been instances where these social media influencers would promise their audience to create a new non-fungible token (NFT), a cryptocurrency, or even a crypto-based online game. These con artists promote crowdfunding projects where their crypto users will spend their money in the hope of a successful project.
However, these scammers fail to deliver on their promises and keep the money to themselves. But the part also lies with these crypto users, since these scammers will again create a fake project that is again funded by these same victims.
Scammers also create dubious crypto exchanges that offer unrealistic returns. These are elaborate Ponzi schemes or pyramid schemes. However, the number of victims is higher since these scammers officially run their shady businesses only to fill their own pockets.
Final Thoughts
Many would wonder how these scammers run away scot-free without the fear of getting caught. The reason is that these cryptos were not regulated, and any criminal caught would eventually be released with a light slap on their wrist.
However, new regulations are being implemented to regulate these cryptos and the crypto market. It won’t be long before these criminals are locked behind bars.
For further clarification, if you have fallen victim to an online crypto scam, then feel free to contact our experts at Financial Money Recovery Specialist, a firm with financial asset recovery experts who will help you recover your stolen financial assets from a scam.
