Avoiding Crypto SCAMS

Welcome to OurDecentralizedFuture podcast where we talk about avoiding crypto scams

Hello hello!

So this happened 2 days ago...

Source

The story is that American billionaire entrepreneur Mark Cuban got caught up in a Decentralized Finance project called Titan from a company called Iron Finance. Here is what happened according to Iron Finance...

Around 10am UTC on 16-June-2021, we noticed some whales began to remove liquidity from IRON/USDC, then sold TITAN to IRON and then IRON to USDC directly to liquidity pools instead of redeeming IRON, which caused the IRON price off-peg. TITAN dropped from 65$ to 30$ in 2 hours, which later recovered in 1 hour to 52$ and IRON fully recovered its peg.
Source

Unfortunately for Mr Cuban and thousands of others invested in this space, this is how it now looks on CoinGecko:

Source

The current price of this stable coin at the time of writing is $0.000000094734.

Podcast

Andrew and I talk about what happened here in episode 3 of OurDecentralizedFuture podcast called Avoiding Crypto SCAMS: Is Mark Cuban right about government regulating crypto?

Here is the Spotify link to our chat:

https://open.spotify.com/episode/4K2CUp83xdLT5T17mxHTlO

Source

You can also watch it on YouTube if you want to see the outcome of Andrew's time with his Crypto Barber:

Avoiding Crypto SCAMS

I totally understand Mark Cuban's call for government regulation to protect people from the losses he just suffered... but the problem is that government regulation isn't always the perfect solution. Government regulation often protects companies by blocking new entrants from particular industries or protest by citizens, incorrectly harms investors (see: SEC vs Ripple) and can stifle innovation (see: India and China cryptocurrency/mining bans)... which could be damaging to global innovations like blockchain.

At this juncture though, we're lucky enough to be able to see some pretty obvious red flags that will help you avoid crypto scams... which Andrew goes through on the podcast.

The best way to avoid crypto scams, in my mind, is to stop trying to gamble on coins and tokens that you think are get rich quick schemes. Yes, people have made a lot of money by being early on a token... but often that's at the expense of many, many others that lost money in those trades.

Instead invest your time, knowledge and money you're willing to completely lose on projects that are going to enhance your life. You can't ever be scammed by a project that makes your life better.... the benefits don't have to be financial at all.

Andrew (@andrarchy) and I have been chatting for a while before we created this podcast. If you’re interested in learning more about Koinos, here are some of the previous chats with Andrew …