Cryptocurrency
With the growing popularity of cryptocurrencies, scams have become increasingly common. If you’ve been targeted or feel trapped in a suspicious situation, contact us immediately.
What is cryptocurrency?
Cryptocurrency is a form of digital or virtual currency secured by cryptography and powered by blockchain technology. It has become one of the most attractive—yet volatile—asset classes in the financial world.
The first and most well-known cryptocurrency, Bitcoin, was created in the wake of the 2008 financial crisis. Designed as a store of value and decentralized alternative to fiat currency, Bitcoin aims to resist the inflationary pressures caused by excessive money printing by central banks.
Blockchain—the underlying technology behind all cryptocurrencies—enables decentralized data storage and secure, transparent transactions without relying on central authorities.
Three Key Cryptocurrencies
Bitcoin (BTC)
Bitcoin is the original and most recognized cryptocurrency. It often represents 55% to 65% of the total crypto market capitalization, making it a dominant force in the digital asset space.
Key milestones:
In December 2017, Bitcoin futures began trading on CBOE and CME, signaling its entry into mainstream financial markets.
In July 2020, the U.S. Office of the Comptroller of the Currency (OCC) allowed U.S. banks to offer custody services for cryptocurrencies, further legitimizing Bitcoin as a financial asset.
Ethereum (ETH)
Ethereum is the leading second-generation blockchain platform, known for enabling smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily serves as a store of value, Ethereum functions as a foundation for thousands of other cryptocurrencies.
Ethereum’s market cap typically sits at around one-third of Bitcoin’s.
In February 2022, Ethereum futures were launched on CME, reinforcing its role as a major investment vehicle.
It’s considered the most prominent altcoin—a term for cryptocurrencies other than Bitcoin.
Ripple (XRP)
Ripple was designed to provide a faster, more efficient alternative to traditional cross-border payment systems like SWIFT. While it gained popularity between 2018 and 2020 and once held the third-largest market cap, it became the focus of significant regulatory scrutiny.
In late 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, alleging that it conducted an unregistered securities offering. This controversy highlighted ongoing concerns about fraud and manipulation in the crypto space.
Ripple executives have been accused of:
Publicly promoting XRP while offloading large quantities at discounted rates.
Creating artificial demand, leaving retail investors at risk of significant losses.
Ripple’s case has become a prominent example of the risks and potential scams in the cryptocurrency market, emphasizing the importance of investor caution and regulation.
FAQs
Yes, scammers frequently target Bitcoin and other cryptocurrencies. While the Bitcoin network itself is highly secure and decentralized, scammers exploit users—especially those who are new to crypto—through fraudulent schemes, fake investment opportunities, phishing attacks, and more. If you’re exploring Bitcoin as an investment, it’s crucial to stay vigilant and research thoroughly before committing any funds.
Bitcoin scammers operate like any other fraudsters—but often with a digital twist. Here are some red flags to watch for:
Promises of guaranteed returns or “risk-free” profits.
Urgency tactics, such as limited-time offers or pressure to act quickly.
Requests for payment in Bitcoin with no verifiable service in return.
Fake endorsements by celebrities or influencers.
Unverifiable companies with no physical address or transparent team.
If it sounds too good to be true—it probably is.
Absolutely. Like any speculative investment, Bitcoin carries the risk of financial loss due to market volatility and price fluctuations. However, it’s important to distinguish between:
Natural losses caused by market downturns.
And fraudulent losses, where your money is stolen through deception.
Understanding this difference can help you take the necessary precautions to invest wisely and avoid falling victim to scams.