Blockchain and Cryptocurrency Beginner - About Crypto Scams the Extent Which Crypto Scams Have Affected the Crypto Space
In my opinion, the crypto scams have affected the crypto space in a variety of ways. Some of the ways in which crypto scams have affected the crypto space are;
Missing out on legit projects and great opportunities due to fear of rugpull or exit scam
This is one of the extents which crypto scams have affected the crypto space. A lot of investors are now scared of investing in new projects because of rugpull or exit scam. Because of the past experiences of heavy loss of funds on scam projects, investors and general users become very cautious and sometime miss out on great investment opportunities.
Negative government regulations
Because of the scams and perceptions many have for cryptocurrency, some countries have put out regulations that is negative in the crypto space. Some countries have banned the use of cryptocurrencies because of the perception of cryptocurrency being used as a way to scam citizens. Some governments claims that they are banning the use of cryptocurrencies so as to protect its citizens from being scammed. While it is not a bad thing for governments to look out for the wellbeing of its citizens, banning the use cryptocurrencies means slow rate of adoption in these countries.
Heavy loss of investment capital
This is also another extent in which crypto scams have affected the crypto space. The aim of scam projects is to steal investors funds. This means that anyone who invests in these scam projects will mostly incur heavy loss of investment capital when the projects rugpulls or uses the exit scam strategy. This has become a big issue in the crypto space in recent times especially since the rise of blockchain and cryptocurrency. Some investors lose all their funds to scam projects that they don’t have any more funds to invest in good project opportunities. This sometimes hinders the rapid growth in the crypto space since more buyers lead to increase in price.
Slow adoption rate
Due to the increase in the rate of crypto scams, it has greatly slowed down the adoption rate of cryptocurrency by people outside the crypto space. A lot of persons know about crypto but are not making use of it because of the perception they have about crypto. Some see crypto as a scam, some are scared to have anything to do with crypto because they see it as an easy way for scammers to get away with scam since transactions are anonymous and can be traced to the persons behind the scam.
