|
|
Edited by Samiksha at 26-12-2023 12:40 PM
Stark also believes that Bitcoin is utterly useless except for facilitating criminal activities such as money laundering, terrorist financing, and ransom schemes involving malware. He writes, "Apart from speculation, most of Bitcoin's value comes entirely from its ability to facilitate criminal activities. Need a way to collect ransom for malware? Need to fund terrorist activities? Need to hire an assassin? Cryptocurrencies like Bitcoin have become the preferred payment method for a large number of criminal enterprises."
Lacking supervision, the cryptocurrency industry has given rise to "increasingly dangerous criminals worldwide," according to Stark. He warns that retailers accepting cryptocurrency payments are risking "reputation damage," and legal, regulatory, financial, and ethical risks will follow suit.
BitMEX Research recently released a report stating that the number of Initial Exchange Offerings (IEOs) has surged, with total fundraising reaching $38.9 million. Smaller exchanges are attempting to replicate this fundraising model, leading to scandals and investor losses. Considering that blockchain technology is not yet mature and faces difficulties in implementation, the market's fund size for cryptocurrency is relatively small. Moreover, funds are gradually moving towards mainstream cryptocurrencies, weakening the profitability of IEO projects. This, in turn, increases the risks for investors participating in IEOs, drawing attention from regulatory authorities.
On the other hand, Jake Chervinsky, a U.S. regulatory defense and securities litigation lawyer, has previously tweeted that IEOs are just ICOs managed by exchanges and does not mean they are more legal than ICOs. He urges investors not to have misconceptions about IEOs. |
|
Post time 15-12-2023 12:42:39