CryptoWatch is here to give you a round-up of the hottest news in the cryptocurrency industry and digital coins, with this week centering on the fears regarding a possible industry collapse amidst the many issues behind it. One of the most feared events for cryptocurrency now is its collapse, especially with the many scams operating and tarnishing its name, with the Palantir co-founder issuing a warning regarding it.
The world is still hung on cryptocurrency's current trends, especially as it centers on the many challenges it faces now amidst failing companies behind it.
Cryptocurrency Scams to Be Its Downfall, Says Palantir Co-founder
Palantir co-founder Joe Lonsdale said that one of the reasons behind the entire cryptocurrency industry's downfall would be the scams propagating in the current market. There are still many people engaging in scams to get money from unsuspecting users, and some do not see this as a part of the Ponzi scheme, also known as the pyramid scheme.
According to a recent interview by Fox News with Lonsdale, the entire industry is basing its value on market demand rather than cash flow, driven by the current state of cryptocurrency.
He states that this is the reason why cryptocurrency remains in a bubble, and while it worked for the past years, it will not be good for the industry in the long run, especially in sustaining the many coins and ventures in the world.
Hackers Focus on Crypto Scams Using SIM Swapping Tool
Hackers and online thieves are getting more clever in their quest to steal money from the public, especially those engaging in cryptocurrency trading and unsuspecting of what is happening behind it. Some think they are getting more money for their investments, but in reality, they are not.
One scammer used a SIM-swapping tool to steal as much as $20 million in cryptocurrency to do, and it is a good thing that authorities have already apprehended this individual.
Engadget's report said Nicholas Truglia is the lead on the massive operations behind this cryptocurrency scam, centering on luring victims to convert Trigger tokens to Bitcoin.
Truglia already pleaded guilty and is the only one charged in this cryptocurrency scam, as per the DOJ.
US CFTC Wants to Regulate Crypto and Avoid FTX End
United States Finance department wants to regulate cryptocurrency under the Commodity Futures Trading Commission (CFTC), especially as the lax regulation in the current industry would have led to people still investing in the company, FTX.
The recent downfall of the famous crypto exchange is a massive example of Finance's push for the need to regulate cryptocurrency, especially in its current significance among the public.
According to Reuters, there is a need for a swift answer to this problem. It centers on legislation for digital assets and the entire cryptocurrency industry centering on its regulation.
The goal is to avoid further money loss from the public and the companies' investors, especially in the current state of cryptocurrency now, with many companies already declaring bankruptcy.
Related Article: CryptoWatch: Binance's Proof of Reserves for BTC, FTX's Former CEO Apologizes, and Genesis' Debt
