One common story around the threats to mainstream adoption is that regulators will revoke their legality. It has to become much more accessible for ordinary people to use and it must be controlled by the volatility.
These are all true. There’s another possibility that could be just as important: scams and hacks, fraudulent trades, dumps, and the like. Why? Every attack leaves scars. The scars are growing fast.
Chainalysis found that scammers stole $14 billion worth crypto in 2021. This is according to hundreds of thousands, if not millions, of victims in a community in which every negative experience has an echo chamber.
Today, scammers and attackers are commonplace.
The root of the urgency to stop the dark web is behavioral economics. Loss aversion is the basis for this. Most people in the mainstream will lose “significant” amounts of money to scams or hackers, and then they’ll likely be done with their entire asset class, if not for ever. The fear of losing can drown out the possibility for gains.
Unfortunately, almost every crypto trader and/or user is at risk of being scammed today. (Even Vitalik Buterin was a victim of a scam. This is detailed in The Cryptopians. The bad guys are just as good.
One example. Reddit informs you that your favorite token will be giving away an airdrop. You have heard of others getting these “free gifts” so you click the link to see a page that shows you what appears to be a trade book. It states that for every 500 tokens you send, you will receive two rewards. There’s a timer that indicates how much time is left to complete the event. You should hurry to get your tokens. So you do. You soon discover that the Reddit channel from which you received the “offer”, wasn’t legitimate. The timer kept restarting itself, and the airdrop was fraudulent.
Exemple 2. Enter the URL “coinbase.pro.com”. A screen appears stating that your account has been compromised. You are given a phone number. You are asked for your date of birth, your email address, and your account information in order to reset your username/password. You feel a little suspicious and pressured. You give them what they want, but a knot in the gut tells you that you gave way more information than you should. Soon, your account was empty of coins. It turned out that pro.coinbase.com was the correct URL.
Three. Example three. You jump at the chance to invest in SQUID coin, which will be part of an online pay-to-play game that is based on Squid Game. You discover that the project’s developers, whose names are not listed, have abandoned it and created an exit trap called “antidumping mechanism”. Your coins are now worthless. This is the moment you’ve had the floor taken from under your feet.
Imagine these scams and many others being repeated 24/7.
Related: 4 smart crypto scams to avoid — Dubai OTC trader Amin Radi
Each day brings a loss of momentum and enthusiasm.
High-profile attacks add to the doubts. Take Axie Infinity’s hack of Ronin Bridge for $650 million, Beanstalk Farms’ $182-million loan attack and Crypto.com’s hack of user wallets worth $33 million. These attacks all occurred in the last year.
Soon, the lawless narrative will dominate. The ongoing mainstream adoption presents new dangers as the “newbies”, who are simply not paying attention to best practices for safeguarding their money, are further victimized. Millions of potential participants are now sitting on the sidelines, preaching “I told You So” to the latest victims.
This brings me to my central point: We must be on the offensive. Marketing offensive.
Yes, it is a good thing to search for new security and safeguarding features. It’s not enough.
Related: Why digital currencies merit a better reputation
A Manhattan Project, Marshall Plan or any other analogy that can be used to mobilize large resources quickly and produce a solution to a problem is what’s required now. Let’s face the facts, tech revolutions can be messy. It’s only going to get worse before it gets better.
To realize its incredible potential, crypto needs a rallying cry and a manifesto. Let’s say it simply: Get involved in the story, facilitate safe adoption, and support the community’s newest members to grow together with their creators. Crypto requires a coordinated, member-funded campaign.
The Crypto With Confidence Project:
Here are my suggestions:
The top 25 largest projects in terms of market capitalization, top 10 centralized exchanges and top five prime brokers joined forces to form a foundation. A decentralized autonomous organization or another entity in which consumer education is all that it does to ensure people can Crypto With Confidence. Treat “crypto” as a verb. Why not? The group’s members, who provide funding and market leadership, are promoted as “sponsors,” which helps them to promote their brands and assert their commitments to security. It promotes unity. Job 1: To create the equivalent of public service announcements or “how-to” content for consumers to make them more aware of the dangers they are facing. The idea lies somewhere between “You can do this!” and “Watch out!” with “Isn’t new technology awesome!” in the middle. It is designed to educate and train an activist public to stop crypto crime and give them the confidence and calm to participate in crypto and web3. Example: “Before putting a transaction in motion, shift into PAK — Pause, Assess Request, Keep.” This will allow you to ask the question, “Is it too good to believe?” Do you find it unusual? Evaluate the company, project, and/or people with whom you are interacting. Are you familiar with them? Are they aware of you? Do you know them well? Ask questions and request information to ensure you are being responsible. Ask questions, keep your keys safe, and make sure you behave responsibly. Imagine Marvel characters defeating the punkscammers, or a rotating cast playing Satoshi Nakamoto. This is not a one-and done thing. It must be a big start, then it should become a ongoing campaign. Reward them for taking the time and being more aware of — you got it — cryptocurrency.
It’s a simple idea: The Crypto With Confidence Project will not only accelerate safety and security best practices, but it’ll also help to mitigate the central argument of regulators that consumers and investors cannot protect themselves.
Web3 is still very young. Web3’s perceptions, attitudes, and behaviors today will likely have a lasting impact on the future. Venture capitalists may be able to raise billions of dollars to finance new protocols and projects. The community can make a big statement about how it is looking out for the best interests and welfare of all its members.
So, let’s go. I’m in. Are you?
This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their research before making any decision.
These views, thoughts, and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.
Rich Feldman leads the marketing for Finario, a global enterprise capital-planning software-as-a-service provider. Rich is an adjunct professor at Western Connecticut University where he serves as an advisory board member for the Ancell School. He has also lectured on strategy at New York University. The Association of National Advertisers published his book, Deconstructing Creative Strategy.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.