On the day of this Saturday, December 5th, the Crypto Night 2020, a panel entitled “Fraud in the Crypto Industry” was held that It was moderated by Joaquín Simonetti, a lawyer specializing in cryptocurrencies, attended by the President of the NGO Bitcoin Chile Miguel Klagges, the influencer MAD and the fintech entrepreneur Moisés Zambrano.
First of all, they defined what fraud is, and there each speaker described the frauds and mentioned that they are those who continuously promise money, who insist that their users add more people to the company or make this their main economic strength.
They added that later These types of scams usually use “attractive” names to attract the public, and they further explained that it is often found that this type of scam lacks social networks or unique contact points, implying that they are not trying to get the public across clarify. They also stated that, unlike the blockchain’s transparency in handling investors ‘money, they are usually quite opaque and fail to show how users’ investments are being managed.
“Fraud outweighs legitimate developments”
To continue the discussion, Simonetti assessed that fraud certainly has an impact on the industry and asked what impact these scams have had on the ecosystem. Everyone agreed that this type of scam creates a very bad reputation for the industry as those affected tend to have a very bad experience for the money lost.
Likewise, They also mentioned that this type of scam can accumulate a certain amount of cryptocurrencies on the part of those affected and this gives them the opportunity to later negatively influence the market.
How can you fight fraud?
Later on, Simonetti also talked about how the fight against fraud should be carried out, and there he gave space to his experience and added this He found that the legal steps to fight fraud are very limited from a legal point of view and asked the exponents what tools are available to combat these regulations.
The exponents stated that the Education is urgently needed in the communityBy doing this, we aim to educate people about the real motivations behind these programs and the consequences they can have for investing their money in them.