Crypto and Scam exits.

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For as long we know, the Cryptocurrency space has been rift with scam exits and continuous scam plays that sees thousands of investors losing their hard earned money to these shady platforms. The modus operandi is usually one of good and cordial business relationship at the start only to end up worse for words and seriously heartbreaking.

One of the first hacks on a cryptocurrency platform I got to know about was one where investors lost over 700,000 Bitcoin which represented 6% of all bitcoin in existence as at them.

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I Feel Blessed!

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The Mt Gox Hack.

Mt Gox, was a bitcoin exchange based in Japan, known to be the largest bitcoin exchange in the world as at then. The exchange was responsible for handling over 70% of all bitcoin transactions worldwide. By the end of February of that year, it was bankrupt. Source

The victim of a massive hack, Mt. Gox lost about 740,000 bitcoins (6% of all bitcoin in existence at the time), valued at the equivalent of €460 million at the time and over $3 billion at October 2017 prices. An additional $27 million was missing from the company’s bank accounts. Although 200,000 bitcoins were eventually recovered, the remaining 650,000 have never been recovered.

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How much has been lost so far?

There are lots of stories about the amount of funds lost to cryptocurrency hacks and they are not wrong if you look at it from the angle they are looking at it from.
According to this report, the amount lost to hacks in 2018 alone surpassed $1.3billion. A hefty sum if you ask me and having that stolen by some group of fraudulent individuals is a shock and enough to make you not want to have anything to do with crypto.

I mean, $1.3billion lost to scam in a single year is not something that anyone should be happy about. The space is relatively young hence, it is susceptible to scams, hacks and exit scams.
Last week while I was minding my business on Telegram (which is a known platform for everything crypto), I was approached by 4 different users masking as reps of an exchange and they are so demonically smart that, they are even able to make you see them as admins in these groups.

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Don't get me started with ICOs.

Seriously, dom't get me started on this topic today. Maybe some other day, but definitely not today. Thinking about that topic leaves a very bitter taste in my tongue that seems to make me want to throw up in anger and vent.

Just so you know, ICO scam took more than $200million from innocent and gullible investors during the Ethereum ICO era.

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The Binance Hack.

Early in may 2019, Binance lost over $40million to hackers and the incidence left many talking about the state of security of the cryptocurrency space.
The hack saw many investors getting worried about the state of cryptocurrency given that Binance is known as the biggest exchange in the world as at now.

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Questions.

Should it be encouraged or should it be dumped?
Should it be regulated by the Central banks or other regulatory agencies?
Should exchanges be allowed to just spring up from anywhere and after gaining investors trust exit?
Who should regulate this industry and who should be the regulators responsible for checkmating the regulators?

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More to Come?

Last night, I heard about Cobinhood and their planned exit scam after raising $3million just last month with Dexonfoundation. Is this a false news or is it something that will turn out to be real?
Will more exchanges exit with investors money while living everyone stuck on tears and fear of the unknown?
What are we to expect from all these and is this space going to get better and self regulated or will it just keep sinking and turning many poor?

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What do you think?

What do you think?
Are we in a space that is positioned to get better by self regulating?
Are we going to keep seeing and experiencing exits for as long as can be?
Will this space get better through self regulation or centralized to governmental regulations?

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