Can Crypto Investments Be Considered As More Advanced Form Of Ponzi Schemes?

Can Crypto Investments Be Considered As More Advanced Form Of Ponzi Schemes?

2021-12-28 | Daniel Smith

Can Crypto Investments Be Considered As More Advanced Form Of Ponzi Schemes?

After being charged for relentlessly peddling false propaganda, an Indian reporting media,  NDTV, has recently been charged of convincing its readers to quit their jobs and invest in crypto, a cryptosystem that various experts regard as a more advanced form of Ponzi schemes. NDTV elevated the virtual currency system and prompted its audiences to invest in it in its new release "Coffee and Crypto," an exhibition produced in collaboration with one of the most famous cryptocurrency trade exchanges, CoinSwitch, by showcasing the storey of one crypto trader who the stream asserted had managed to earn profits and via investing in cryptos. On December 24, NDTV's main Twitter feed tweeted a clip from the show. Sonal Mehrotra Kapoor, the programme's presenter, raves in the clip regarding how a crypto trader, who uses by the Twitter account @MsCryptomom1, gone on to achieve outsized gains after quitting her job and going full-time into virtual currency trading. NDTV removes a 'paid tweet' as users accuse the station of supporting Ponzi schemes. Whereas the tweet was sent on December 24 and stayed on Twitter for several hours, it was quickly removed when social network enthusiasts noted out how NDTV had successfully urged naïve people to leave their profitable work and enter the risky realm of betting and Ponzi schemes. Academic Harsh Madhusudhan also chastised the channel for urging individuals to quit their professions in order to participate in what he described as "some pie in the sky quasi-Ponzi scam." Harsh questioned, in reference to CoinSwitch, "How much did NDTV's 'partner' spend for this plug?" He also believes that SEBI, RBI, MoF, and MoIB should examine and establish guidelines for such funding. Others lambasted NDTV and its employees for leading people down a perilous path, questioning how much money the news station received from its collaborator to so openly push cryptocurrencies. NDTV erased the 'bought tweet,' but the footage of the full event is still available on their YouTube account. In the face of uncertainties over their fate in India, cryptocurrency exchanges ramp up their public relations effort. NDTV's ostensibly paid virtual currency advancement comes on the heels of an exacerbated public relations crusade led by numerous cryptocurrency exchanges as the Supreme Court and the Central Government debated whether to ban them or implement a few sort of regulation to oversee the country's virtual currency scheme. As their existence swings in the line, bitcoin exchanges presently operating in the nation have increased their public relations efforts. They have been aggressively marketing themselves, claiming that their trading exchanges are fully safe, frequently utilized, and safeguarded for investments. Several crypto exchanges have enlisted the help of celebrities such as Ayushmann Khurrana, Amitabh Bachchan, Ranveer Singh, Janhavi Kapoor, Disha Patani, and others to increase the number of clients on their platform. Though crypto firms portray a favourable image of oneself, it is important to note that trading in virtual currency is risky since crypto swings are extremely regular and huge, capable of entirely decimating investors' hard-earned funds. Some of the difficulties that bitcoin presents are outlined beneath. Cryptocurrency's Difficulties The introduction of cryptocurrencies has brought with it a new set of issues. The most significant of them is the quandary over the legitimacy of these digital currencies. Because of the uncertainties surrounding the legality of the virtual currency market, banks have been hesitant to allow their clients to interact with cryptocurrencies. The RBI instructed banks not to use its 2018 ruling as a justification to refuse banking services to clients who engaged in cryptocurrencies, which alleviated some of the institutions' concerns. The RBI declared that the Supreme Court of India has overturned its 2018 ruling. Nonetheless, notwithstanding the Supreme Court's softer position on cryptocurrency, obstacles remain. The volatility of numerous cryptocurrencies is one of the primary issues that has a big influence on justifying the digital currency system. Cryptocurrencies have demonstrated to be exceedingly volatile in recent months, raising worries about wealth loss and other hazards associated with digital currency trading. The unauthorised usage of cryptocurrencies by fraudsters, most prominently hackers and racketeers, has also raised worries among Indian authorities about their abuse by felons. The intrinsically decentralised structure of cryptocurrencies, which makes it impossible for government agencies to control, has further contributed to the public's worry about them. Activities using cryptocurrency are irrevocable. As a result, if fraud is perpetrated, the transaction cannot be reversed. Because the government lacks jurisdiction over cryptocurrencies, it will be unable to resolve consumers' complaints. Consumers are typically well-protected when it comes to traditional financial goods. Nevertheless, if any bitcoin is misplaced or hijacked, there is no one who can restrict customer damages. This is one of the grounds why, in addition to the Indian government, authorities in other nations have been wary about crypto, anticipating their absence of central control and the implications for the nation's monetary stability. Other issues that call cryptos into question involve the security risks they provide, as well as the absence of a method for assuring successful transmission. There are also concerns of asset bubbles forming around such coins as a result of over-leveraging with potentially novel sorts of derivative goods.

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