The decentralized nature of cryptocurrencies means that the world around it has become quite un-patrolled and at times rampant with different criminal activities. The west method of fundraising in the cryptocurrency world is known as an ICO or initial coin offering. This means that a company will offer coins instead of a traditional stock. Once investors buy the coin, they can either trade it for other coins or cash of their choice, or they can hold on to it for investment purposes.
A new report has come out showing scary figures surrounding the amount of money that has been hacked and taken from these companies in their first stages of growth. The boom that the cryptocurrency world saw back in 2017 could primarily be driven toward the high amount of initial coin offerings that occurred, which essentially flooded the market with a whole new group of investors that otherwise would not have chosen to get involved in the cryptocurrency world. The report around security, published by Ey Research stated that security has become a secondary priority for these companies, and that too often the investors are subject to scams such as phishing, where they unknowingly put their information into a website regarding passwords and so on.
Other attacks include websites that have anything to do with the tracking of the ICO and so on. One of the difficulties with the cryptocurrency world has been finding a sense of legitimacy. From its inception, the decentralized nature has allowed for a high amount of crime and illegal uses of the money transference. The hopes are high that as the market is able to grow, the amount of crime and large money thievery will slow down, leading to a more trustworthy financial system for all.