HW: Are Your Articles Research Articles?

Ponzi Schemes in Relation to Cryptocurrency

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Ponzi Schemes in Relation to Cryptocurrency

Proposed Research Problem 1

The rise in crypto Ponzi schemes

Cryptocurrencies have become overly popular in a relatively short time. Ever since Bitcoin came around and had massive success, several cryptocurrencies have been borne out of the efforts of individuals to mirror the success. The result is that there have been several scams in place of crypto investments. Ponzi schemes have existed with respect to traditional forms of investments. Nowadays, individuals are focusing on this new form of currency to perpetrate fraud. A significant amount of finances have been defrauded by crypto investors in the recent past.

1). People involved: Individuals with an interest in investing in cryptocurrencies

2). Link to article: https://www.nytimes.com/2022/11/11/business/crypto-ponzi-scheme-hyperfund.html

3). My research question: What are the driving factors behind the recent crypto Ponzi schemes?

Since cryptocurrencies became popular, there have been more than 10 Ponzi schemes that have involved crypto. The digital asset market continues to be ravaged by fake investment initiatives such as Morris Coin and Forsage. The increasing number of schemes and the impact they have in terms of losses that investors suffer makes this a key concern.

Proposed Research Problem 1

Preventative measures against crypto Ponzi schemes

More and more people are getting involved in cryptocurrency. There is a general assumption that virtual currencies are the future. Technological developments are aiding the continued usage of cryptocurrencies. The values of the currencies have also risen tremendously. The outlook is that these currencies will continue to play central roles in the business world. It is thus essential to direct attention toward means and strategies of preventing or avoiding Ponzi schemes when investing in cryptocurrencies. The finances which are at stake because of such schemes are substantial.

1). People involved: Individuals and entities investing in cryptocurrencies

2). Link to article: https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams

3). My research question: What strategies, guidelines, and regulations should be instituted to curb Ponzi schemes associated with cryptocurrencies?

The reliance on cryptocurrencies has been predicated on the efforts towards switching from the traditional forms of currency and the value of crypto relative to the traditional form. The emphasis on getting into cryptocurrencies and investing in them requires minimization of the risks that investors face. Protecting crypto investors from fraudsters is instrumental in the direction the currencies take.

References

Federal Trade Commission. (2022). What to Know About Cryptocurrency and Scams. https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams

Segal, D. (2022). The crypto Ponzi scheme avenger. https://www.nytimes.com/2022/11/11/business/crypto-ponzi-scheme-hyperfund.html