Remember, we warned you back in the day the number of frauds and scams to do with ICOs, cryptocurrency, and blockchain, in general, will increase in 2018? Well, we were paraphrasing official sources, but nevertheless: the cryptocurrency market, as we said, is picking up speed, and so are the fraudsters.
MailChimp has recently issued a statement that they would prohibit everything to do with cryptocurrencies and blockchain. MailChimp is a marketing automation system that has been around since 2001 to work closely with service providers and clients with equal dedication. They have often been known for enforcing strict policies that were to ensure user protection on all levels. This goes as far as the prohibition of advertising of working from home, lead generation opportunities, MLM, credit repairs and even Facebook likes trading. They have stated for the record:
“We recognize that blockchain technology is in its infancy and has tremendous potential. Nonetheless, the promotion and exchange of cryptocurrencies are too frequently associated with scams, fraud, phishing, and potentially misleading business practices at this time…journalists and publications may send cryptocurrency-related information as long as they’re not involved in the production, sale, exchange, storage, or marketing of cryptocurrencies.”
SEC’s standpoint you will likely already know. With an introduction stating that the matter is highly complex and that “in-depth analysis is to be made” before any far-going conclusions are to be made, SEC states:
“A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation. Investors should understand that to date no initial coin offerings have been registered with the SEC. The SEC also has not to date approved for listing and trading any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies. If any person today tells you otherwise, be especially wary.”
MailChimp is obviously not the first company to ban cryptocurrency, even though they didn’t bad advertising of it like Twitter:
“We are committed to ensuring the safety of the Twitter community. As such, we have added a new policy for Twitter Ads relating to cryptocurrency,” – Twitter declared- “Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
Google also unleashed on cryptocurrency ads after a number of them were found out to be used to detect investors:
“We updated several policies to address ads in unregulated or speculative financial products like binary options, cryptocurrency, foreign exchange markets and contracts for difference (or CFDs) to combat new threats and improve the ads experience online”.
Facebook is also out for blood, promising to learn to “better detect deceptive and misleading advertising practices” after numerous incidents of fraud, one of them being PonziCoin, a cryptocurrency project that was created as a joke. This project still, despite very clear references to the legendary Ponzi Scheme (!) managed to gather so many users that the company had to shut down, stating once again for the record:
“We hope everyone had a good laugh 🙂 But we have to shut down. This was a parody art performance/joke. I did not “run off” with the money, I never sold any of my PonziCoins, and the contract was drained from other users withdrawing. Please be careful when investing in shady cryptocurrencies, especially ones that look like pyramid schemes – it’s a zero-sum game and money doesn’t appear out of thin air.”
What we think
It turns out investors today, despite numerous warnings, are very susceptible to fraud, and it is certainly understandable that companies like Mailchimp would have to refuse to have anything to do with these ads. What’s even more alarming is that technically there is no regulation that currently guarantees your funds will be safe if you choose to buy crypto.
As is the case with exchanges, which are not really governed at this point by any official regulation, everything that these days concerns virtual currency is lacking one consensus (essentially meaning there is no law).
At G20 there have been multiple attempts to reach a consensus on cryptocurrency regulation, but in the end, the only consensus to be had was that there can be no consensus. Investors basically lack protection that they would otherwise have had they used banks. There are no guarantees, besides from the way the system is set up, of integrity let alone sky-high ROIs.
Bitcoins as they are, still, are a very popular form of currency today, in a similar way to dollars and euros; simply because most people buy them and they have many, many uses.
Bitcoin is still probably the most bouncebackable cryptocurrency around if you only count the number of times it has experienced death cross and survived and became even more bountiful.
We have seen numerous times, way before it hit its peak on December 17th, when everyone was sure Bitcoin is never coming back. Still, it is still here, and although the weekly course tracking will more than likely make you depressed, if you look at the daily and yearly charts, Bitcoins are on the rise.
There is evidence that the world is getting ready for its use big-time, and the fact that there are many, many more fraudsters these days is a sign of its colossal potential.
We’re not sure whether the crypto scene will remain as it is with its many weaknesses and insecurities, but the blockchain mechanism itself with its many uses and remarkable flexibility will certainly become a part of our future in ways we can’t even begin to imagine.
Image courtesy of Derebus.
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