bitcoin price drop

The financial regulator known as FINRA, which provides testing and licensing for registered brokers. The organization recently put out a statement warning investors who want to get into the cryptocurrency market, and stated that they should be cautious when approached by these businesses. The regulating agency stated that “Especially in today’s ‘hot’ cryptocurrency environment, it’s easy for companies or their promoters to make glorified claims about new products, services and other cryptocurrency-related connections.

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And, even when legitimate companies flock to a hot, new sector, fraudsters almost always follow suit, exploiting the news to launch their latest frauds du jour.” Among one of the groups is the company known as the Long Island Tea Corporation, who recently announced that they were changing their name to the Long Blockchain Corp after stating that they are “shifting its primary corporate focus towards the exploration of and investment in opportunities that leverage the benefits of blockchain technology.” This was reported in a recent article, stating that the stock price for company after the name change went up over 200%. The SEC recently warned investors back in August, that they should be aware of the recent schemes for pump-and-dump by these cryptocurrency marketing companies.

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They stated that “These frauds include ‘pump-and-dump’ and market manipulation schemes involving publicly traded companies that claim to provide exposure to these new technologies,” the agency said at the time.” With an emerging market such as cryptocurrency taking the world by storm every day, it is clear that some companies will enter the market and become fraudulent. As an investor, it is always important to know and be able to spot these companies to avoid becoming a statistic for fraud research as time goes on.


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