Multiple incidents in the crypto market recently have added to public doubts and increased dissatisfaction regarding crypto exchanges and digital assets, fuelling fresh calls for regulatory action from finance and investment watchdogs, including the UK’s Financial Conduct Authority. However, over in the US, where the two linked crypto assets Luna and TerraUSD recently crashed, many have warned of potential scams and schemes related to cryptocurrency to come.
Among them, US billionaire entrepreneur Mark Cuban has commented that crypto fraud and scams were likely to increase this year in 2023. In a recent interview with investment journal The Street, Cuban commented that everyone can be prone to becoming victims of cryptocurrency scams from, active participants in the sector to celebrities.
Many UK consumers with concerns regarding digital assets or fears of scams to part them from their funds seek out investment advice in Chester, Liverpool, London and other financial centres across the country. Wealth managers are independent financial advisors and can offer an impartial view of investment opportunities to help their clients side-step fraudulent schemes.
A simple crypto scam known as “The Wash” involves a fraudster or trader buying and selling tokens to exaggerate a cryptocurrency’s trading activity. The token is promoted on social media in a positive light, to give the impression to dealers that it has achieved popularity and is now in greater demand. When interest grows in the coin, so does its price. However, when the asset reaches peak value, the scammers liquidate all their holdings.
