Why have cryptocurrencies lost their value?
The world of cryptocurrencies is too free. That is, in my opinion, why these new assets have lost their value.
Pic Source : https://pixabay.com/photos/bitcoin-money-decentralized-virtual-2008262/
That is a free financial system that authorizes everyone to make their own money. At first glance, the system is good, but it will cause hyperinflated tokens and coins.
Today, there are hundreds or thousands of developers who create tokens and coins. Their goal is to get fiat. The investors do not know whether the developers are trustworthy or not. When they buy the new tokens, they expect a high return, but the reality will be different.
There are a lot of developers who scam their investors. Those cases make people lose trust in cryptocurrencies. This causes resistance from people who do not like cryptocurrencies.
Regulators seem to have no power to control naughty developers. They have little involvement in this world because the transactions are peer-to-peer.
Scammers use this gap to trick investors and steal more money. Though the basic concept of crypto is based on trust, many developers deceive their investors with this crypto feature. That is very bad.
The cryptocurrency developer committed to corrupting the asset with their authority to sign in to the main wallet. The developers also bail out their tokens or coins to take more profit in the open market. One question: why do some coins or tokens have CEOs if cryptocurrency is decentralized?
In the end, there are many chinks in cryptocurrencies for naughty developers to exploit to steal investors money. When more people lose trust in crypto, they will not put their money in this world. This will cause cryptocurrencies to lose value.
