Scams and Frauds Continues Impacting Cryptocurrency Market Credibility

Crypto Scams

Crypto scams and frauds are tightly connected to the cryptocurrency markets due to their unregulated nature and lack of trading guidelines. Regulators, analysts and advertisement companies have been criticizing crypto coins with concerns related to illegal activities. Mark Carney thinks crypto traders are fools while Business magnates like Bill Gates and Warren Buffet call it a market for criminals.

The most popular advertisement platforms, including Facebook (NYSE:FB), Google (NYSE:GOOG), and Twitter (NYSE:TWTR), have banned cryptocurrency related ads – the big internet companies consider crypto market ads harmful to the general public. Fake ICO’s and misrepresentation of facts are among the most significant factors behind ad bans from the advertisement platforms.

However, regulators are looking deeper into cryptocurrency markets; they are blaming cryptocurrencies for money laundering and other illegal activities.

Declining Google searches and fumbling trading volume shows bearish comments and market reports have successfully dropped trader’s confidence in cryptocurrencies and related activities.

Cryptocurrency Selloff Intensified

The cryptocurrency market plummeted more than 60% in the last three months. Bitcoin price fell sharply by more than 7% in early trade on Tuesday before paring losses later in the session.

Altcoins have also been tumbling at a robust pace after a brief rally at the beginning of last week. Ethereum (ETH) and Ripple (XRP) currently trade at the lowest level since mid-December, while Cardano (ADA), Stellar (XLM) and NEO (NEO) have also been under substantial pressure.

The Downside Volatility Could Extend in the Short-Term

Cryptocurrency markets are under pressure at present. The lack of regulatory guideline for ICO’s and cryptocurrency trading has allowed criminals and scammers to take full advantage, and this is further impacting the credibility of the entire crypto market.

Nevertheless, regulators started presenting guidelines for crypto exchanges and ICO related activities – they are also taking initiatives to avoid illegal movement of wealth. Analysts believe the current volatility is a transitionary period, and the cryptocurrency market is expected to rebound sharply by the end of the year.

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