US SEC published fresh investor alert against crypto scams
Regulators of the US released a new alert for the crypto investors towards multiple types of risk. The new alert release is basically due to the increasing scams in crypto.
The SEC ( Securities and Exchange Commission) is responsible for the regulatory framework on the crypto and crypto market in the United States. The regulator keeps an eye on the market, which types of scams are going on and how to deal with them so that new ponzi schemes can be prohibited. A new alert for the crypto Investors, now released by the SEC.
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According to the SEC, in the present time, huge amounts of crypto scams are running which are not easy to detect.
First of all they highlighted the possible scam because of the ICOs offerings. According to the SEC, recently many crypto tokens, NFTs, have Increased with very high speed. And people can get into fear of missing the opportunity to become very wealthy with their Investment. So every crypto investor should understand the risk associated with the crypto Investment instead of seeing historical growth or any kind of promising Investment.
“Investors may be less skeptical of investment opportunities that involve something new or ‘cutting-edge,’ or may get caught up in the fear of missing out (FOMO).”
SEC also reminded that the increase in the price of any coin/token may be a part of the scammers activities, so be careful always towards such kind of scam.
Read also: A man lost $700,000 worth of btc, due to fake YouTube advertisements
Further SEC added that Crypto investors should take care about their Investment and they should see towards the signs of scams. Investors shouldn’t go with any kind of high investment return schemes, unclear license and registration status and fake testimonials.
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