Bitcoin
BTC$70 351.33

0.98%

Ethereum
ETH$3 563.43

1.41%

Tether
USDT$0.999988

0.03%

Binance Coin
BNB$609.39

3.66%

Solana
SOL$187.39

2.04%

XRP
XRP$0.620328

1.40%

Major Investment Threat: NASAA Bashes Cryptocurrencies


03 Jan 2020

#Bitcoin

Even though the responsible part of the global crypto community is going above and beyond in its effort to improve the image of cryptocurrencies among the general public and investors alike, various influential individuals and organizations are relentlessly insisting that cryptographic tokens pose a significant danger.

The North American Securities Administrators Association (NASAA) published a list of five biggest threats for nascent investors, which had been drawn up by the group of security regulators who work with the Enforcement Division within this organization. Cryptocurrencies, and the associated investment vehicles, were named the greatest financial menaces in the coming year.

We are here to warn you


The report, which was released on December 23, states that the compilers arrived at the corresponding conclusions after having interviewed numerous members of NASAA, as well as the representatives of national and regional securities regulators, which operate in such countries as Mexico, Canada, and the United States.

According to Christopher Gerold, the President of this organization and the Head of the Bureau of Securities in the state of New Jersey, the primary purpose of making a list was to provide investors with better insights into the pitfalls of this business and help them to secure the financial assets in the new year better. The main rule of thumb, he said, is to never buy into offers that promise high, fast, and, most importantly, guaranteed returns on the initial investment. This constitutes an outstanding feature of all scams and shady projects, especially if they are “seasoned” with an imposed sense of urgency, which is often realized through a limited time offer.

He also warned about the risks of devoting money to private offerings that don’t comply with the requirements of federal agencies that regulate the market of securities.

Crypto features in two threats on the list


Cryptocurrencies topped the list, though they weren’t singled out but placed under the category of unregistered products and unlicensed salesmen. As we all know, crypto is struggling to gain legal recognition in the United States, which significantly hampers its attractiveness to local investors. Therefore, the absence of a proper securities license, which many firms that work with crypto can’t have a priori, was classified as a major red flag by NASAA.

Digital currencies also featured in another section of that list - Ponzi schemes. Unfortunately, even the most die-hard adherents of cryptocurrencies can’t argue the fact that this space is still riddled with such pyramid scams that beguile billions of dollars from gullible investors and inflict serious damage upon the reputation of blockchain startups and cryptocurrencies in general. According to the latest stats, the passing year saw a major spike in fraud associated with cryptocurrencies, even compared to last year’s figures. Whereas in 2018, crypto holders lost $1.7 to scams and Ponzies, over the course of this year, the numbers have skyrocketed to $4.4 billion, with $2.9 billion being defrauded through the infamous PlusToken scheme.

It must be mentioned that NASAA has initiated a task force called Operation Cryptosweep, which involved 200 investigators monitoring the crypto market for potential scams. As for the other investor threats, the organization designated them as promissory notes as well as investments in real estate and oil/gas enterprises.

Author: Alex Paulson for Crypto-Rating.com

Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 77.2% 42 $70 351.33 0.98% 6.24% $1 383 616 289 179 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72.8% 50 $3 563.43 1.41% 1.23% $427 863 792 327 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.4% 1 $0.999988 0.03% -0.01% $104 503 049 622 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 62.4% 81 $609.39 3.66% 5.26% $91 126 608 949 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 56% 88 $187.39 2.04% 4.26% $83 277 925 728 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 84.8% 28 $0.620328 1.40% -2.67% $34 046 224 673 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 94.4% 2 $0.999962 -0.02% -0.02% $32 473 090 820 USDC 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 66.4% 66 $0.213486 8.10% 36.16% $30 669 747 448 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 69.2% 66 $0.647302 0.63% 1.81% $23 033 195 143 ADA 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 60.4% 87 $53.96 -0.08% -3.86% $20 364 103 953 AVAX 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 58% 94 $0.000031 1.91% 12.79% $18 233 772 220 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 59.6% 87 $4.88 1.12% 13.91% $16 940 788 238 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 73.2% 49 $9.41 -0.61% 1.32% $13 426 123 378 DOT 7 days price change
14 Bitcoin Cash (BCH) BCH Bitcoin Cash predictions 71.2% 60 $572.73 7.39% 37.54% $11 272 605 158 BCH 7 days price change
15 Chainlink (LINK) LINK Chainlink predictions 79.6% 42 $18.97 -1.66% 2.82% $11 139 217 136 LINK 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.