news4global
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

    If You Understand THIS About Crypto, You're In The 0.0001% Of People That Get It | Gary Vee

    If You Understand THIS About Crypto, You're In The 0.0001% Of People That Get It | Gary Vee

    ETHEREUM HISTORY REPEATING? (Watch THIS)!! Ethereum Price Prediction 2022, Ethereum News Today (ETH)

    ETHEREUM HISTORY REPEATING? (Watch THIS)!! Ethereum Price Prediction 2022, Ethereum News Today (ETH)

    WARNING: BITCOIN GAUSSIAN COLOR CHANGE! (be ready)

    WARNING: BITCOIN GAUSSIAN COLOR CHANGE! (be ready)

    URGENT!! THIS BITCOIN CRASH IS TELLING ME SOMETHING BIG HAPPENS BY TOMORROW!!

    URGENT!! THIS BITCOIN CRASH IS TELLING ME SOMETHING BIG HAPPENS BY TOMORROW!!

    Bitcoin BLOODBATH as Crypto's Drop 10% (Former SEC Chairman WARNING to XRP Holders)

    Bitcoin BLOODBATH as Crypto's Drop 10% (Former SEC Chairman WARNING to XRP Holders)

    BITCOIN DUMPING – What's NEXT?! | Bitcoin News Today & Bitcoin Price Prediction after Bitcoin Crash

    BITCOIN DUMPING – What's NEXT?! | Bitcoin News Today & Bitcoin Price Prediction after Bitcoin Crash

    Baby Dogecoin News Today | Rajeev Anand | Crypto News today | Crypto Marg | Cryptocurrency News

    Baby Dogecoin News Today | Rajeev Anand | Crypto News today | Crypto Marg | Cryptocurrency News

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

    If You Understand THIS About Crypto, You're In The 0.0001% Of People That Get It | Gary Vee

    If You Understand THIS About Crypto, You're In The 0.0001% Of People That Get It | Gary Vee

    ETHEREUM HISTORY REPEATING? (Watch THIS)!! Ethereum Price Prediction 2022, Ethereum News Today (ETH)

    ETHEREUM HISTORY REPEATING? (Watch THIS)!! Ethereum Price Prediction 2022, Ethereum News Today (ETH)

    WARNING: BITCOIN GAUSSIAN COLOR CHANGE! (be ready)

    WARNING: BITCOIN GAUSSIAN COLOR CHANGE! (be ready)

    URGENT!! THIS BITCOIN CRASH IS TELLING ME SOMETHING BIG HAPPENS BY TOMORROW!!

    URGENT!! THIS BITCOIN CRASH IS TELLING ME SOMETHING BIG HAPPENS BY TOMORROW!!

    Bitcoin BLOODBATH as Crypto's Drop 10% (Former SEC Chairman WARNING to XRP Holders)

    Bitcoin BLOODBATH as Crypto's Drop 10% (Former SEC Chairman WARNING to XRP Holders)

    BITCOIN DUMPING – What's NEXT?! | Bitcoin News Today & Bitcoin Price Prediction after Bitcoin Crash

    BITCOIN DUMPING – What's NEXT?! | Bitcoin News Today & Bitcoin Price Prediction after Bitcoin Crash

    Baby Dogecoin News Today | Rajeev Anand | Crypto News today | Crypto Marg | Cryptocurrency News

    Baby Dogecoin News Today | Rajeev Anand | Crypto News today | Crypto Marg | Cryptocurrency News

No Result
View All Result
news4global
No Result
View All Result
Home Latest news

Bitcoin news – latest: Crypto prices collapse as investors say they have lost fortunes

May 12, 2022
Reading Time: 4 mins read
0
Bitcoin news – latest: Crypto prices collapse as investors say they have lost fortunes
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

Hot Stocks: Fintech plunges; U, WEN fall on earnings; ELY rallies; SWCH jumps to new high

Hot Stocks: Fintech plunges; U, WEN fall on earnings; ELY rallies; SWCH jumps to new high

May 11, 2022
How to avoid ‘rug pulls,’ the latest cryptocurrency scam

How to avoid ‘rug pulls,’ the latest cryptocurrency scam

May 11, 2022

Experts warn about ‘crypto rug pull’

Here’s a warning, from Associated Press, about the “crypto rug pull” and how it could lead to yet more pain in the cryptocurrency markets:

A new type of scam has emerged in the hype-filled world of cryptocurrency: the “rug pull.”

The scam, which gets its name from the expression “pulling the rug out,” involves a developer attracting investors to a new cryptocurrency project, then pulling out before the project is built, leaving investors with a worthless currency. It’s part of a long history of investment schemes.

“This isn’t a crypto-only phenomenon. This is a people phenomenon. Crypto is just the latest way to do it,” says Adam Blumberg, a Houston-based certified financial planner who specializes in digital assets. But cryptocurrencies have particular risks due to loose regulations for fundraising and their emphasis on decentralization.

Cryptocurrency projects often use “smart contracts,” agreements that are governed by computer software, not the legal system. This setup can be a benefit when it reduces transaction costs, but it also leaves little recourse if things don’t work out.

Rug pulls have been particularly common in decentralized finance, or DeFi, projects that aim to disrupt services such as banking and insurance. NFTs, or non-fungible tokens, that provide digital ownership of art and other content, have also been involved in rug pulls.

Investors can protect themselves by choosing established cryptocurrency projects, making sure the code of any new project has been reviewed and verifying the developers’ identities.

Rug pulls are most common with new projects that haven’t gotten the same scrutiny as more established cryptocurrencies.

Bitcoin has its risks, but countless people worldwide have used it and reviewed its inner workings, which are readily available online. Newer projects don’t have such a track record, which means there may be vulnerabilities that make it possible for their organizers to siphon value away from investors and keep it for themselves.

If you’re struggling to break through the hype, one way to find established projects is to look at centralized exchanges such as Binance, Coinbase and FTX. While the presence of a cryptocurrency on a large exchange is by no means a guarantee of its quality or investment potential, these businesses often will review assets before listing them for sale.

The trade-off of investing primarily in more established assets: While cryptocurrency, in general, has seen periods of rapid price appreciation, the highest rewards may come from new projects where the risk is also higher.

These are often listed on “decentralized exchanges,” which don’t rely on any centralized authority that would prevent unproven projects from joining.

Rex Hygate, founder of DeFiSafety, a company that reviews projects in the field, says scammers can prey on the fear of missing out that’s generated by rare but true stories of mind-blowing returns. “It is seductive. People have made a lot of money. That is a fact,” Hygate says.

“The hope is real, albeit small, (and) therefore criminal organizations in an organized and regular manner are making these rug pulls.”

The fate of any investment in cryptocurrency or blockchain projects rests on the integrity of the project’s computer code. You may not be a computer programmer, but you should at least understand how a product works before investing in it.

One way to evaluate a potential investment without going under the hood yourself is to see if it’s been audited by a professional organization that is respected in the industry. Projects that have gotten good marks from auditors will often promote the results themselves.

Some of the biggest red flags in the cryptocurrency world come down to human factors.

While it’s not unheard of for people to use pseudonyms in cryptocurrency, reputable developers often have websites and references that can establish their credentials.

But even if you do your homework, there’s no guarantee of success. For example, the founder of Rugdoc.io, a service that reviews new projects, says she wound up getting scammed herself on an NFT that was supposed to be a ticket for an event.

Diversification is as important in cryptocurrency as anywhere else in finance. Projects can fail due to technical glitches or business blunders, even without malicious intent.

“Assume whatever you’re investing in is going to have a problem,” says Leah, the Rugdoc.io founder, who asked that her full name not be used to protect her identity from scammers seeking retribution. “If you plan for failure, if it doesn’t fail you’re going to have a very good day. And if it fails, you’re probably not going to be ruined.” 

Share76Tweet47

Related Posts

Hot Stocks: Fintech plunges; U, WEN fall on earnings; ELY rallies; SWCH jumps to new high

Hot Stocks: Fintech plunges; U, WEN fall on earnings; ELY rallies; SWCH jumps to new high

by admin
May 11, 2022
0

A hotter-than-expected reading on inflation and intense selling in the cryptocurrency market led to another day of losses on Wall...

How to avoid ‘rug pulls,’ the latest cryptocurrency scam

How to avoid ‘rug pulls,’ the latest cryptocurrency scam

by admin
May 11, 2022
0

A new type of scam has emerged in the hype-filled world of cryptocurrency: the “rug pull.” The scam, which gets…...

2022 Bitcoin Obituaries List Outpaces First 3 Years, Schiff Says Its ‘Highly Likely Bitcoin Will Crash Below $10K’ – Featured Bitcoin News

2022 Bitcoin Obituaries List Outpaces First 3 Years, Schiff Says Its ‘Highly Likely Bitcoin Will Crash Below $10K’ – Featured Bitcoin News

by admin
May 9, 2022
0

While bitcoin’s price has dropped to levels not seen since January 2022, a number of detractors think bitcoin is on...

Decentralized Finance Loses 17% in Value Locked Latest Blockchain & Cryptocurrency News

Decentralized Finance Loses 17% in Value Locked Latest Blockchain & Cryptocurrency News

by admin
May 9, 2022
0

Decentralized Finance, popularly known as DeFi, lost 17.77% in the last 30 days of value locked in the protocol. The...

AS IT HAPPENED: All the action from the 2022 Miami Grand Prix – Formula 1

AS IT HAPPENED: All the action from the 2022 Miami Grand Prix – Formula 1

by admin
May 8, 2022
0

AS IT HAPPENED: All the action from the 2022 Miami Grand Prix  Formula 1

Load More
  • Trending
  • Comments
  • Latest

Bitcoin Is ‘Definitely Not a Fraud,’ CEO of Mobile-Only Bank Revolut Says

March 2, 2022

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

March 3, 2022
How online shopping has changed over the last 30 years | National

How online shopping has changed over the last 30 years | National

April 6, 2022

India: Bitcoin Prices Drop As Media Misinterprets Gov’s Regulation Speech

March 4, 2022

US Commodities Regulator Beefs Up Bitcoin Futures Review

0

Bitcoin Hits 2018 Low as Concerns Mount on Regulation, Viability

0

India: Bitcoin Prices Drop As Media Misinterprets Gov’s Regulation Speech

0

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

0
Bitcoin news – latest: Crypto prices collapse as investors say they have lost fortunes

Bitcoin news – latest: Crypto prices collapse as investors say they have lost fortunes

May 12, 2022
Global Crypto Regulation Body Likely in Next Year, Top Official Says | Technology News

Global Crypto Regulation Body Likely in Next Year, Top Official Says | Technology News

May 12, 2022
crypto: ET Smart Talks: Kichee a crypto with a cause, will help reduce carbon footprints: Shailendra Singh Rao

crypto: ET Smart Talks: Kichee a crypto with a cause, will help reduce carbon footprints: Shailendra Singh Rao

May 12, 2022
Bitcoin ‘kisses’ $24K realized price after 2nd highest seller losses in history

Bitcoin ‘kisses’ $24K realized price after 2nd highest seller losses in history

May 12, 2022

Latest News

Bitcoin news – latest: Crypto prices collapse as investors say they have lost fortunes

Bitcoin news – latest: Crypto prices collapse as investors say they have lost fortunes

May 12, 2022
Global Crypto Regulation Body Likely in Next Year, Top Official Says | Technology News

Global Crypto Regulation Body Likely in Next Year, Top Official Says | Technology News

May 12, 2022

Categories

Site Navigation

  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services
  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services

© 2022 Designed by news4global

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • Videos

© 2022 Designed by news4global