Cryptocurrency industry is growing faster than the internet era of the 1990s.
And anything which is new comes with its own pros and cons. In the Blockchain and Cryptocurrency market, unfortunately, it’s more of Cons because today the internet is available to even babies but during the Internet era, the Internet was not widely available on handheld devices!!
Frauds in the Crypto and Blockchain Industry
All you need to do is Type “Blockchain” or “Bitcoin” on LinkedIn and you will find at least 100 thousand people (I find 435000+ depending on the network and the number of connections). How is it possible to have so many experts in the field in just 3-4 years? There were no courses till 2017, who thought what Bitcoin or Blockchain was, very few publications and a lot fewer YouTube channels giving you random “Crypto Crap”.
I realized that most of them jumped in this industry during the boom of 2017 and had no clue what all that was about.
I found out that approximately 99% of people had just 1 year or no experience at all in the industry and yet became advisors for tech projects for raising funds via ICOs.
Unfortunately during the ICO boom, the biggest requirement for an ICO was having a few white faces as advisors. A lot of the lucky ones made money and got in a few friends as well who have had a dapper man’s profile picture on LinkedIn but on finding out about them further, we realised they had no experience in technology or finance.
As a result, there were plenty of flop & scam projects and the investments were gulped down without burps! The innocent investor lost a lot of money, and in rage, all that lead to a spread of negative news about Cryptocurrency, and how it is used for Money laundering and for terrorism. But very few talked about the good ones and the problem Bitcoin was solving. It was the anger of the people who lost money and the need for spicy news for the journalists which was talking.
Those who paid for the frauds were genuine projects with great ideas to change the world using encryption, coding, and algorithms. The problem these techies face is lack of knowledge in Finance and marketing which makes them end up with inexperienced or fraud professionals.
Cryptocurrency is a mix of Finance because it deals with money or exchange of value directly. Along with that, one must know the fundamentals of trading, exchange systems, buying & selling, bid price and ask price, and several other terms from the traditional financial markets. But that makes the finance professional in pressure as well as he must know the basics of coding, algorithms, cycles, APIs, smart contracts etc. so that he can make the both of them work together.
An interesting incident had happened for an ICO in mid-2017 during the crypto bull run. A good project with a genuine team of entrepreneurs planned an ICO to raise capital for their project but they had no or very less idea of the technology used so they hired a freelancer to make the smart contract for the ICO. What the freelancer did is he made the smart contract with a bug which used to forward the funds received during the ICO to his own wallet. The ICO was sold out in less than 24 hours but the founders did not get any money because the freelancer who made the smart contract already run away with the money. Only if the team had got their smart contract audited or had the basic knowledge of the smart contract, they could have saved their project.
We are not saying that one needs to master both Finance and Technology but to know the fundamental basics that make the entrepreneur more capable of handling situations.
As far as my information and statistics go, there are less than 50,000 experts in this industry. The remaining which you see on LinkedIn and other websites are either outsourcing their work or are faking it and trying their luck.
Our time needs more learned FinTech and Crypto Specialists to make the decentralised economy go further ahead in the right direction.