Scams and Frauds Continue Affecting the Credibility of the Cryptocurrency MarketApril 15, 2018
Scams and frauds are interrelated to the cryptocurrency markets because of unregulated nature and insufficient trading guidelines. Over the years until now, there have been criticisms regarding crypto coins. Most regulators, advertisement companies, and analysts have been raising their concerns about illegal activities that are rampant in the industry.
Mark Carney consider crypto traders fools. And business magnates such as Warren Buffet and Bill Gates classify the cryptocurrency industry a market for criminals. It attracts scammers to perform fraudulent ventures.
Because of the prevalent crypto scams and frauds, many popular advertisement platforms such as Facebook, Twitter, and Google have banned all related ads. Other big internet companies think that the crypto market ads can harm the public and other people. The ban aims to stop further activities that can lead to worse scenarios in the near future.
Among the most important factors that result in the ad bans from such popular platforms are the fake ICO’s as well as misrepresentation of facts. Since the past few years, running an ICO promotes easy money. Scammers can fake one without a hard time. Despite its prevalence, individuals still fall for it at present.
Nevertheless, different regulators are still looking into the markets. In fact, they blame cryptocurrencies for various illegal activities like money laundering.
With such unlawful activities and the ban on Facebook, Twitter, and other platforms, there have been bearish comments over the internet. There are also negative market reports that have dropped anyone’s confidence towards cryptocurrencies. A lot of people are now hesitant to give the industry a try. Its credibility is expected to reach the bottom. Over the last months, the cryptocurrency market has plunged more than 60%. Moreover, it is expected to plummet along the way.
Aside from that, Altcoins have been losing its strong foundation after a rally last week. In the mid-December last year, Ripple (XLM) and Ethereum (ETH) trade at the lowermost level. On the other hand, Stellar, NEO, and Cardano have been under pressure as well.
Nowadays, the cryptocurrency markets are under substantial pressure without a doubt. The absence of regulatory guidelines for ICO’s trading has given criminals and scammers the chance to get the most out of cryptocurrency. As they get a full advantage, they bring down the positive credibility of the entire market.
Nonetheless, regulators have started presenting necessary guidelines for ICO related activities and crypto exchanges. Also, they have been taking initiatives to impede illegal movement of crypto wealth online. Some analysts think that the volatility opens a transitionary period.
Thru all these actions, the cryptocurrency industry is more likely to rebound at the end of the year. The credibility will be back to its right and perfect place. All associated benefits would come to reality. From lower fees to decentralization, taking the crypto market into account would give all people an advantage.