Wednesday, May 27, 2020

Shone Anstey Explains How To Curb Scams To Ensure The Healthy Growth Of Cryptocurrencies

Cryptocurrency has seen immense growth since its invention in 2009. The growth has however been stagnated with scams and price manipulation that has hindered institutional acceptance of the cryptocurrency. Speaking on the ways out of the menace that is militating against the growth of cryptocurrency, Shone Anstey, President, and co-founder of Blockchain Intelligence Group talk about the way forward out of this menace in a mail chat with coingeek.

The tool For Scammers Doom

Tackling the menace of scammers in the cryptocurrency ecosystem, the President and the co-founder of Blockchain Intelligence Group stated that the firm has two tools that can give cryptocurrency scammers their Waterloo. The trend of cryptocurrency scams has made the criminal activities suitable for the culprit, as many get away with committing these atrocities.

However, the end is near for them with the two tools described as “…QLUE and BitRank that can help authorities track the scammers. QLUE’s advanced proprietary search algorithms assist law enforcement to track and investigate suspicious and illegal activity so that they can successfully prosecute these scammers.” While he described BitRank as “…a proprietary ‘risk-scoring’ tool that investors can use for risk mitigation so users can try and check if ICO wallet address they are sending funds to has been used by a criminal element before a transaction takes place.”

On Combating Scammers Beyond Borders

Scam beyond border is a type of frauds perpetrated by a company registered in another country. This firm scam citizens of another country that invested in its project. On how to fight the trend he noted that the onus of this rests on the government of each nation through MLATs (Mutual Legal Assistance Requests). Shone stated that “Where possible the government will use MLATs (Mutual Legal Assistance Requests). MLATs are used by law enforcement agencies around the world to make official requests.”

He further speaks of his admiration of the Japanese government’s mode of regulation for virtual currencies, which has made the citizens more safer in cryptocurrency transactions.

Necessary Tool For Investors

Many in the cryptocurrency community want to get rich quickly, which makes them dabble into the wrong ICO. To guide against this scams in the crypto space, Shone noted some basic rule to follow to ascertain the authenticity of any ICO.

“• Does the coin solve a problem that is prescient, as opposed to solving a problem that does not exist?

• Does the coin have a product beyond the White Paper?

• Do the management team members have real identities? Are they contactable independently of the internet? Have they been recycled through various ICO’s

• Are the private keys to your ICO tokens yours to hold?

• If you wish to have a say in the appointment of board members, how much weight does a token-holding give you, exactly?”

Crypto Regulations Key For Growth

The same thought echoed by the SEC on the subject of Bitcoin ETF approval that the applications have no proper regulations and are highly volatile, Shone re-echoes this in his opinion as for the key for the growth of the cryptocurrency market. Shone said that “a new cohort of businesses and investors are wishing to enter this rapidly evolving space. But they can easily decide not to do so if they see an absence of robust regulations.”

This infers that tackling price manipulation and the cryptocurrency scammers activities would go a long way in accelerating the growth of the cryptocurrency industry.

Latest News

Bitcoin Transaction Fees Decline as Network Congestion Eases

After facing a heavy load of transactions earlier this month, bitcoin's network has returned to a more normal level,...

Bitcoin News Roundup for May 27, 2020

While the yuan weakens against the U.S. dollar, Coinbase makes an acquisition to grow its institutional trading infrastructure. It's another episode of CoinDesk's the...

This Cryptocurrency Is Up 260% and It Seems to Have More Gas in the Tank

Ever since Coinbase Pro revealed that it will be listing OmiseGO on its retail platform, this ERC-20 token has done nothing but shoot up....