The perils of loosely regulated cryptocurrencies and stablecoins, which skyrocketed in value during the COVID-19 pandemic, have been brought into sharp relief, with the cryptocurrency market plummeting this month following the demise of key stablecoin terraUSD. Bitcoin, the most popular cryptocurrency, has lost more than 50% since November.
The cryptocurrency economy has been ripped to shreds in recent weeks, with the sector’s value plummeting by hundreds of billions of dollars and several currencies entirely collapsing. The scamming industry, estimated to be worth $7.8 billion last year by Chainalysis, has not given up. Scammers continue to find fertile ground on Telegram and Twitter, posing as humanitarian heroes assisting those who have suffered losses as a result of the catastrophe. The explanation capitalises on the cult-like character of cryptocurrency investing, but experts believe this is far from the case.
A widespread conspiracy theory claims that investment firms such as BlackRock and Citadel planned the crypto meltdown. According to one view, these corporations purposefully crashed Bitcoin in order to acquire into the space at a lower price.
(With agency inputs)