The blockchain space continues to grow in popularity and relevance. It is now a bonafide sector of global finance, with terms such as ‘crypto’ and ‘DeFi’ becoming mainstream topics on global news networks.
It gained one of its most iconic nicknames, ‘the Wild West of Finance.’ because of its similarities with the frontiers of the wild west. These areas were synonymous with poor regulation, lack of consequences for raucous behavior, accompanied by characteristic cut-throat vibes and broad daylight shootouts.
While these scenarios make for great classic movies, it is not ideal for financial systems that hold more than one trillion dollars of users’ funds in different smart contracts, wallets, exchanges, etc., at the time of writing.
The crypto space has always been exciting, and it continues to churn out juicy stories that keep hundreds of crypto news platforms in the business. However, it is not always good news, especially since bad news draws a larger audience and makes for better reading.
According to the Federal Trade Commission (FTC), more than 46,000 people reported losses of over $1 billion in crypto in 2021. This figure does not include unreported transactions. Considering the amount of money flowing through DeFi platforms, the actual statistic may be more than double the reported figure.
It does not take a genius to figure out that the current status quo is unsustainable. Users cannot continue to hemorrhage hard-earned funds to faceless scammers, and in some cases, silver-tongued founders that hang around like a bad cold and leave an unpleasant sore when they eventually disappear.
Fighting Scams in the Crypto Space
Scams in the DeFi space are multi-faceted, ranging from rug pulls, to insider trading, payments for illegal activities, wasting investors’ funds, hacks, etc., and they are one of the biggest headlines out of the DeFi space. Users can get done in multiple ways, and on many occasions, it feels like there’s no…
