Crypto Scams continue unabated

It is truly shameful that thieves and scammers have ruined the prospects of blockchain creating a fundamental sustainable shift towards democratic money. Having a decentalized trust method to exchange digital assets does nothing to prevent criminals from operating illicitly on the edge.

The problem being that in order to potentially benefit from the blockchain, at some point real people with real money (fiat currency) must buy Crypto assets . This “edge” is the chasm between historic or what we might refer to as normal monetary systems and the new age crypto systems. Having a decentralized, anonymous, low friction and fast means to move digital money fails us miserably because once in digtal form digital money has no reliable auditable method to track and recover stolen weath. It can simply disappear into thin air as just happend to my Ethereum holdings.

While comtemplating how to use the blockchain for Ayodo Foundation’s altruistic intentions of providing non-profit payment and money transfer processes and thus enhancing financial inclusion (Remittance Services) to help alleviate poverty, I needed to learn about blockchain through perosnal experience. I therefore was caught up in Quadrigacx “flame out” having lost my entire Ethereum holdings on this Vancouver exchange. Fortunately for me, unlike this poor victim who lost more than $500K QUADRIGACX my entire holdings represented about $10 worth of crypto.

If you read my earlier posting below on what a terrible year 2018 has been for most holders of Crypto currencies, I failed to mention the ModernTech fradulent ICO which neted the backers more than USD 600 million, which was stolen as the organizers disappeared with the funds. That scams of this magnitude can be perpetuated from jurisdictions, or regions (Singapore & Dubai) who are encouraging the Fintech industry and are adopting more “Open Banking” due to human greed is truly discouraging. These bad actors, through their criminal actions and their human greed, are preventing the evolution of digital money which could serve humanity well. Note these dangers occur at the “edge” – either on an Exchange where cryptos are traded with either a data breach by unknowns or when the backers themselves disaapear with the money or via an ICO . If regulators really wanted to protect society then they would accept the blockchain for what it real is and focus on passing new legislation to control the Exchanges and the ICO and in particular Cash In and Cash Out (CICO) and if you also have read any of my previous posts this shouild not be through stronger or more KYC regulations, as when criminals walk away with $660 millioin dollars from 32K purchasers, the accounts are NOT balance limited. On average each purchaser, or each account represented $20,625.


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