By: Ranim Elgabakhngi
The digital currency known across the world as ‘cryptocurrency’ has captured public imagination, as it was born with the simple promise of financial freedom and unprecedented returns, before it grew into something more complex, a volatile ecosystem under no government control. They are not physical, but rather digital, and come in forms such as: utility, security, payment, and stable coins.
A Rising Tide
Cryptocurrency has always represented a good fundamental shift in finance with positive investments tied to projects with genuine utility, robust technology, and strong development teams, as they offer a stable, long-term investment, and a hedge against inflation.
First Of Many
Bitcoin made its first appearance around 2009, creating a stable ground for the upcoming coins. It’s a real utility similar to Ethereum that provided genuine positive investments exist in projects that are worth investing for, offering potential for significant returns for investors who believe in the long-term vision of the project.
A New Kind
Later on, meme coins made their appearance, such as dogecoin, and many more. They dominated the digital financial space with speculative risks, making it an online breeding ground with scams by malicious anonymous users who came into play to fill their scheme which is ‘get rich quick.’
Bait And Switch
As meme coins grew in popularity by online hype, despite their lack of value, the drama surrounding it grew as well, as famous influencers began ‘rugpulling,’ where a project’s developers abandon it and steal all the investors’ money; ‘pig butchering,’ where fraudsters build trust before convincing victims to invest in fake platforms; and lastly ‘pump and dumps,’ where traitorous influencers promote their followers to misleading projects they’re secretly profiting from.
While cryptocurrency offers potential for innovation and gains, it can be a digital minefield landscape littered with risks here and there, so investors need to proceed with caution and keep their guard up while remaining a high degree of skepticism of who they’re dealing with when putting their money on the line, considering that ignoring red flags such as unverified sources due to the hype of quick profits can lead to a chain of financial losses.
