We started a brand new series of articles about „Potemkin Cryptoassets”. The concept was created by us and the term „potemkin” is used for possible forms of fake and fraudulent formations in cryptoassets. We are developing a sophisticated methodology for creating an early warning mechanism for detecting these types of cryptocurrencies beforehand. In every article, you will find one part of this mechanism. The first article of the series mentioned the components of their corporate identities like the registered location of cryptocurrency’s issuer and the legal case history of founder/s of cryptoassets.
Besides the components of their corporate identities, business plans and daily trading targets of cryptoassets should be considered as other early warning signals for investors. If extremely aggressive marketing methods are used for promoting cryptoassets, for calling investors’ attention and trying to persuade them to invest more, investors should put a red flag on. Furthermore, it has been observed many times by regulatory authorities that fake advertisements with images of celebrities, especially on social media, is most widely used during fraudulent activities. Recently, the twitter account of Elon Musk have been used for this tactic for hijacking and luring people into cryptocurrency fraud. Fake investment schemes are used for misleading victims by attaching a story from celebrities and telling they made a lot of money with mentioned cryptocurrency.
Within aggressive marketing methods, it has been observed many times that fake customer notification letters were produced with unscrupulous investment offerings with favorable but unsustainable terms. Victims can receive these documents within a URL of a well-known news website which was tailored like an authorised news portal. Regulatory authority of UK has detected a fake copy of the english newspaper Daily Mirror which was used for promoting lucrative crypto asset investment schemes. The page was banned however, the link reached to many victims and took their personal data unlawfully.
Besides individual crooked activities, cryptoasset investment market has also global crypto-powered money laundering cartels. It has been announced by Europol that with a successful operation covers 16 countries like United Kingdom, Spain, Italy, Latvia, and Bulgaria and it has been arrested 20 individuals from Australia, the U.S, the U.K, Portugal, Spain, Latvia, and Poland who are working for a criminal network. The organisation is accused of laundering millions of euros for top cybercriminals since 2016. The funds are allegedly transferred through international bank accounts, shell companies based in Poland and Bulgaria, and via cryptocurrency mixing services.
We will analyse different components of “Potemkin Cryptoassets” in the articles to be published in following weeks. For any further questions, please reach us via firstname.lastname@example.org or visit our CryptoIndexSeriesTM Platform for better analysis of the crypto market space.
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