Cryptocurrency is still a relatively new investment option with the most well known being Bitcoin only having been created in 2009. Crypto is an unregulated market meaning anything can happen. That is part of the reason that coins can rise out of nowhere like Dogecoin has with an incredible 132,978% increase in value from 2016 to now. It is also the reason that this scam and many like it take place. Anyone can create alt-coins with the right knowledge and as the “creators” they have the ability to crash their creation hence the sudden shift from “$2.8k to $0” the creators cashed out their coin into its real money valuation meaning anyone who had owned coins at the time lost everything because all of the coins were “converted” into real money. Crypto won’t be regulated anytime soon and the uncertainty of the market is one reason that I don’t partake in it. There is no safeguard in the stock market to protect against losses but stocks and other traditional invest options lack the direct volatility that seemingly spontaneously occurs in the crypto market. It is important to conduct research in all investments but even more so in crypto due to its complete lack of regulation. There can be great gains or there can be great losses and absolutely no way to tell due to crypto not being backed by anything as it isn’t tied to any concrete real currency like traditional stock markets are. Crypto’s value is inherently a supply and demand game. More people wanted the currency and so they invested. When the creators essentially deleted the currency they kept all of the investors money and since there’s no way to track a fraudulent company and crypto is in essence a “dark web” investment the criminals who swindled people out of their hard earned money got away.
