The cryptocurrency industry has become a very dangerous place for investors. The trend has been seen since the inception of this innovation, but in 2018 it has worsened, accompanied by a major collapse that same year.
Only in 2018, about $ 1.5 billion are lost in the crypto market.
Several factors are responsible for the loss, one of which involves hacking on exchanges.
However, there is an increasing trend of real coins being traded on exchanges. Losses from such exchanges are probably greater than hacking losses. For example, some coins that can not easily be exchanged with fiat, such as Billion Coin (TBC), which require investors to convert them into ordinary coins as a bitcoin before turning into fiat, such as US dollars.
Disappearing without a trace
The problem is finding a reliable exchange to make such exchanges. There is a case of a investor who recently lost over $ 42 million in TBC, which magically disappeared without a trace.
They provided email and phone number but never sent a single bitcoin as promised, even after they raised more than the stock exchange fee because TBC had no market capitalization. This may not sound like a valid argument, because TBC is not exactly a crypto asset, but caution should be taken, as such exchanges can begin to penetrate the core industry and the funds of investors can be lost.
Regulations are needed
If the alleged exchange can simply take the investors money and disappear without a trace, it won’t take long before the industry crashes because investors cannot distinguish the sheep from the wolves.