Cryptocurrencies are prone to censorship by default which allows their users, owners, and holders exclusivity over their crypto assets. The controlling power is exclusive to the owner or possessor of the cryptocurrencies and does not require any third-party supervision. But there are only two issues with cryptocurrencies which are serious and major issues.
For example, these two major issues are firstly the volatility and secondly the security and safety of crypto assets. While “volatility” is an event over which the crypto owner has no control, yet the issue of security and safety is the sole responsibility of the crypto owner.
Currently, the crypto industry is riding over a considerably long journey i.e. rallying since the end of 2019 to date. The Crypto industry is made up of cryptocurrencies and the market capital of cryptocurrencies. Since the end of 2019, all three segments of the crypto industry have been surging with exponential growth. For instance, the entire crypto industry has surged by more than 900% while the number of crypto users has increased to above 100 million. In addition, from January 2021, till 31st March 2021, there has been an increase of users @ 14 million.
The increase in the numbers of crypto users is good as well as bad. It is good because cryptocurrencies have been adopted worldwide and resultantly their value surges are brought profits to their owners. But bad in the sense because in the presence of more than 14 million newest crypto users, this means huge opportunities for scammers.
Because these 14 million users are new, therefore, they are not accustomed to crypto thieves and scammers. Every crypto-using nation of the world has informed recently that they have failed to mitigate crypto-related frauds. Instead, all of them have apprised that crypto frauds haven’t only increased from the past year but this year they will be doubled. As they are newbies, they can be easily targeted by the perpetrators for extracting money from them illegally. Therefore, the risk of losing crypto funds is the ultimate responsibility and burden of the owner to bear.
Last year the crypto industry saw hacks, scams, and thefts which resulted in the loss of approximately US$ 1.9 Billion. However, considering the crypto amount loss in 2019, US$ 1.9 Billion was nothing as in 2018, the industry lost US$ 4.5 Billion. But this year, authorities all over the world, have warned their citizens to be extra careful and do not engage in any crypto offering until they are 100% sure. If there is a tiny bit of sense of disbelief then the people have been advised to keep their distance from the crypto offerings.
The most notorious types of scams seen working actively these days are crypto Ponzi schemes and exit scams. Both are very effective modes of looting the newbies as well as pro-crypto users and time and again have caused losses into billions.