Where money is concerned, scams inevitably follow. And the same is true with cryptocurrency. Scam artists know no bounds, and people have constantly been scammed. That’s nothing new under the sun.
Recently, we have faced the FTX case, and its affiliated trading firm Alameda Research has been exposed. Sam Bankman-Fried clandestinely used customer funds to bail out FTX’s sister company, Alameda Research. The collapse of FTX is definitely already slumping as one of the most relentless crypto-related frauds in history.
2022 revealed that the FTX – Alameda Research case is not particular, unfortunately. That’s why it’s more important than ever for anyone in the crypto world to double-check their information before investing.
After arguably the most earth-shattering recent deception, we identified some crucial questions you always need to ask before getting involved in any crypto investment.
Let’s see!
Is there any legislation that might prevent the project from growing?
The base feature of the crypto market is the lack of regulations. It is the most libertarian economic model to date. However, the risk of fraud and infrastructure vulnerability shows up without regulations. Thus, some countries have created a set of laws or drafted rules to protect consumers.
So, before investing, do your research and check your area’s crypto regulations. Cryptocurrency regulations can differ from one state to another. After that, check for possible legal issues the project may have or…
