US Busts Crypto Scams But, Investor Losses Still Keep Mounting

There are few angles to the issue of crypto legislation and security. While details into these could require an entire book of their own, we highlight a positive trend here. The US authorities have managed, to bust quite a few crypto scams in recent months. This has generally happened using conventional laws, probably with crypto specific legislation chipping in on a few occasions.

Glitzkoin has repeatedly stressed the importance of crypto investor protection. The year 2022 alone has seen crypto investors lose billions of dollars – this with little chance of making any recovery. The LUNA project which, had all the flavors of a scam, has been allowed to carry on and continues, to hoodwink investors. More such cases exist.

We see crypto projects with business models that, are ridiculous and super high risk. Promoters launch such ideas often knowing that, there would be only a short but very lucrative run for the project. Funds are siphoned out and routed through complex routes – this to ensure that tracking the flow of funds would be next to impossible. Projects ultimately crash and investors bear losses. We have seen promoters trying to run away in the past, the recent practice is to file for bankruptcy. Backed by powerful lawyers and business advisors, the focus remains on saving the bosses. An approval of a bankruptcy application, invariably means that the losses borne by investors would never be recovered.

Agreed that crypto based transactions can be made very complicated, tracing the origin and destination of the funds can often seem impossible. Crypto legislation is a topic that, requires intense brainstorming and a high level of understanding. This explains why many malpractices and ‘shady’ activities, do not ring any alarms with the law. It is often way too late by the time that, the true intentions of the promoters become clear.

This report would be incomplete without, talking about crypto price ‘pumping’. This is the practice where paid media content containing severe exaggerations or even downright lies, is aimed at misleading investors. The whole operation is undoubtedly controlled and financed by, crypto investors with high stakes in specific cryptocurrencies. With little chance of being pulled up by the law, these operations have caused financial losses to a large number of crypto investors. At higher risk are new or fairly inexperienced crypto trade participants.

Crypto legislation is not something that, Glitzkoin or even the authorities can formulate in isolation. It would be ideal if representatives from the crypto sector, investor groups and the government would evolve legislation as a combined effort. Until that happens, crypto investors would need to be double cautious when, making any crypto transaction.

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GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token. 

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.

 

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