Crypto scams biggest threat to investors now, warns top US body

15

New Delhi, Jan 12 | Cryptocurrencies and digital assets will be the top investor threat in 2022 and before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds, a top US non-profit organisation has warned.

According to a new report from the North American Securities Administrators Association (NASAA), cryptocurrency scams are the number one top investor threat “by far.”

“NASAA’s securities regulators revealed that investments related to cryptocurrencies and digital assets is our top investor threat,” said Enforcement Section Committee Co-Chair Joseph P. Borg, Alabama Securities Commission Director.

“Stories of acrypto millionaires’ attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments this year, and with them, many stories of those who bet big and lost big began appearing, and they will continue to appear in 2022,” he said in a statement.

The most common telltale sign of an investment scam is an offer of guaranteed high returns with no risk.

“It is important for investors to understand what they are investing in and with whom they are investing,” said Melanie Senter Lubin, NASAA President and Maryland Securities Commissioner.

Digital assets do not fall neatly into the existing investor regulatory framework, and it may be easier for the promoters of these products to fleece the public.

All investments carry the risk that some, or all, of the invested funds could be lost.

“Investments in cryptocurrency trading programs, interests in crypto mining pools, crypto depository accounts and securitised tokens should be seen for what they are: extremely risky speculation with a high risk of loss,” said Enforcement Section Committee Vice-Chair Joseph Rotunda.

Cryptocurrency scammers netted $7.7 billion worth of cryptocurrency from victims in 2021, an 81 per cent rise in losses compared to last year.

According to Blockchain analysis firm Chainalysis, nearly $1.1 billion of the $7.7 billion were attributed to a single scheme which allegedly targeted Russia and Ukraine.

A key source of rising cryptocurrency scams in 2021 were arug pulls’, where the developers of a new cryptocurrency vanish and take supporters’ funds with them.

Source: IANS

Next Story

Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered sharply on the last trading day amid the weekend after a continuous fall. Market has managed to halt above 16000 Nifty levels after continuous losing streak. Index reacted violently, grasping Indian as well as global factors throughout the week. Simultaneously, Inflation is catching up and profit margins are taking a hit.

 

Sensex advanced 1532 points or 2.90 percent while Nifty gained 484 points or 3.07 percent in a week. Simultaneously, Bank nifty has overcome bear’s dominance ending the session with 3.49 percent gain. Sectorally,Nifty Metal saw the highest gains of 7.40 percent followed by the Realty and Auto added over 4% gain. On the flip side Nifty IT tumbled 2.82 percent on weekly basis. Midcap and Small Cap measures rising nearly 2 percent as well.

In Nifty stock, EICHERMOT gained 11.31% while TECHM lost 5.98% on a weekly basis. INDIA VIX closes at 23.10 suggests volatility driven market is going to remain intact. Coming to the OI Data, on the call side highest OI witnessed at 17000 Nifty followed by 16800 Nifty strike price while on the put side, the highest OI was at 16000 Nifty followed by 15800 Nifty strike price. Technically, Nifty has formed a Tweezer Bottom type pattern in the weekly chart suggesting a short term buying rally may drive the market until monthly expiry. On the daily chart, price has rebounded from the lower Bollinger band as well.

Momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone. However, Index is still struggling to get the support of 50 Simple Moving Average in daily chart. Short term investors and traders are advised to work with option strategies to neutralize the volatility. Overall, Nifty is having support at 15700 mark while on the upside 16700 followed by 16500 may act as an immediate resistance. While Bank nifty has support around 32500 while resistance is placed at 36000 on weekly chart.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

LEAVE A REPLY

Please enter your comment!
Please enter your name here