Cryptocurrency is so much in trend these days. They have come a long way, and now lots of people are involved in dealing with cryptocurrencies. But there are still so many things about cryptocurrencies you probably do not know. Do you agree with this?
We are going to list a number of things down below that you probably do not know, so let’s learn something new about cryptocurrency. Here we go:
Bitfinex has been hacked a couple of times. The most recent update regarding this Hong Kong-based cryptocurrency exchange is that a massive amount of money approximately 65 million dollars’ worth of bitcoins were stolen from here! And the company ended up compensating for this loss by stealing money from its users. Not only this, but Bitfinex also expelled this person who was associated with Bitfinex’s Taiwanese banking partners.
Ransomware, Ponzi’s, Zero-fee and AML-less exchanges
A recent report stated that Huobi and Huobi and OKCoin, the popular exchanges of China, invested 1 billion yuan ($150 million) that belonged to idle client funds into “wealth-management products.” It depicts that the only reason behind why these exchanges were able to operate so smoothly is that they used deposits of customers and invested that money in other financial stuff and that too without telling the customers! The same thing has also been done by other exchanges such as BTCC (formerly BTC China).
Initial coin offerings (ICOs)
A user needs to have bitcoins or ether from cryptocurrency exchange if he wishes to enter into ICO. The wallet address gets ICO coins in return once this whole process takes place. Sometimes, these organizers make a pre-ICO sale, which tends to give some sort of discounts and offers to the investors. But these discounts and offers are not disclosed to the investors by these organizers. These days, we can notice a tremendous increase in the exploitation of the coins.
There are so many good prestigious companies that seemed to engage regular active users, and there are countless reasons for the same. As per some reports, 5 lac users were there in Coinbase, and out of all the total accounts, 14,355 accounts invested approximately $20,000 in business, it happened between the years 2013-2015. So what happened? Most of the users had an account, got only little coins, and only a few of them used them as real money.
People have less understanding of Bitcoin transactions. It seems that we don’t have proper insights about what is going on, and transaction growth is undoubtedly slowing down. It states that there should be someone who should be regularly updating regarding slicing data, but no, instead of that stuff, we mostly see memes and gifs! The term Market flow refers to the assets and cash flows of a company. But it doesn’t make any sense in the world of cryptocurrency.
The data, as mentioned above, does not imply that you should stop trading and investing cryptocurrencies. The main objective of this information is to make you aware of what the industry lacks and how there is a need that investors should remain cautious and avoid risks that are not visible in the industry. This also doesn’t imply that cryptocurrencies are either good or bad. They can be used both ways, depending on someone’s intentions and motives. They can be beneficial as a reward for safe transactions and can also serve as payment for the hostage of data.
Neha Bawa is a Proud daughter to an Indian Army official, A Mother, and a wife, Graduate in Bachelors of Business Administration, She has also done Diploma in Aviation, Hospitality, and Tourism Management. She has vast experience as a blogger in the travel and tourism industry. Recently her interest in technology drove to write articles on Blockchain and Cryptocurrencies. Now she is an author and researcher for the cryptocurrency industry-related many articles.