This time, I want to make a homework post that will answer professor @yohan2on from Steemit Crypto Academy, as the homework is to answer some questions given by our professor.

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[A] What are Crypto scams?

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Fraud is a criminal activity that often occurs in any case, this is also no exception in cryptocurrencies. Cryptocurrency fraud is a crime committed by a person or group who aims to gain profit for themselves by deceiving many people.

Cryptocurrency fraud has existed since the presence of crypto in this digital world, with this irresponsible party making the image of cryptocurrencies worse. This action must be removed immediately because it will harm many people, especially investors who have worked hard to set aside money to invest in this type of asset.

This crime should be avoided by investors by putting so caution in investing in cryptocurrencies. Maybe for some investors who already have long flying hours in cryptocurrency, they have often received news or have even experienced fraud in the cryptocurrency world. However, for novice investors, they will be very likely to be exposed to this scam because they are not experienced enough. Therefore, it is highly recommended to read some news that tells of fraudulent events in cryptocurrencies so that they can be the first shield for these novice investors.

There are several types of fraud that often occur in cryptocurrencies, namely:

1. Private Key Theft
   The thing that is most often targeted by fraudsters on cryptocurrencies is the Private Key. As we know that all cryptocurrency wallets have a private key that should not be known by anyone other than the owner of the wallet because if this key is known by others then all the funds in the wallet can be stolen easily. Fraudsters often target this private key in various ways so that they will steal funds from the victim's wallet. For you, novice investors, never give your private key to anyone because this private key has no other use than to protect the funds in your wallet.

2. Airdrop Scam
   The next type of fraud that is often done by fraudsters is the Airdrop scam. Airdrop is an event that will give us cryptocurrency for free, with this lure, fraudsters often disguise themselves as Airdrop committees and they will ask for the victim's personal information, after they get the victim's information and data, they will launch their action by taking victim's money quickly so that the victim is often deceived.

3. ICO
   ICO is an event on cryptocurrency. ICO stands for Initial Coin Offering which is the process of raising funds by the developers of a newly launched cryptocurrency, these developers try to raise money for the development of the project they are running with the promise of giving investors a portion of the coin at a very low price. cheaper than when the coin has rolled on the exchange whose value will be greater so the opportunity to make a profit. However, there are some people who use this to collect money from many people and they will just leave when the funds have been collected, and they will let the project they promise be abandoned so that investors lose money because they have invested in the project.

• Examples of Fraud On Cryptocurrency (Turtle Dex)

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One example of fraud that has occurred in cryptocurrency is the fraud committed by the developers of Turtle Dex. Turtle Dex is one of the projects on the Binance Smart Chain that was created with the aim of being a DeFi-based data repository that allows users to store all their files without the need for any device. Turtle Dex is known to raise investor funds through an IDO event held on Binanace DEX.

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The news of the Trutle Dex scam was first noticed by a twitter account named @DefiStalker 24 hours after the IDO event ended, he got a movement on March 15 where 9000 BNB was exchanged for ETH and then sent to 9 different wallets. The value of ETH that was taken away was approximately $2.5 million, they exchanged BNB coins into ETH on ApeSwap and PancakeSwap.

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After that, news spread that the website of Turtle Dex was closed and the telegram group that usually provides information about this project was muted so that there was no movement, it is as if the project never existed. With the occurrence of this fraud case, many people were harmed, in fact they had just finished an initial fundraising event by the developer Turtle Dex.

[B] To what extent have Crypto scams affected the Crypto space?

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Cryptocurrency scams have a huge impact on the presence of cryptocurrencies themselves. This fraud will have a negative impact because many investors will suffer losses and the fraud has affected all sectors in the crypto world such as markets, investors, coin prices, etc.

The first thing that becomes the impact of fraud on cryptocurrencies is regulation. As we know that regulation will foster public confidence and increase the prediction opportunities when investing. With the existence of various frauds in this cryptocurrency will make the regulation more stringent on this asset. Cryptocurrency scams will also give governments in various countries many reasons to want to regulate crypto even more stringently.

Cryptocurrency scams have damaged the reputation of crypto itself, as it has increased the mistrust of many people towards cryptocurrencies. There are many arguments that money should not be decentralized and controlled by people without regulations that cripple one of the core goals of Cryptocurrencies. Scams have also made investing in crypto risk higher by requiring investors to be prepared to accept the high risks of profitable investments.

[C] Will regulations in Crypto add value to the Crypto space?

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I personally think that regulation will add value to the crypto space, there are several that I think the impact of regulation is that the first is that regulation will help cryptocurrencies to grow faster so that many new investors know what to do when investing.

With the regulation of public safety will be prioritized on each platform, and correct information will be provided about cryptocurrencies so that it will help investors make the right decisions. Regulations will provide comfort for investors and will provide comfort in a decentralized system that helps people unite. Regulation will foster trust in the public and improve predictability when investing. If cryptocurrencies are regulated, investors will increasingly trust the expectations of high profitability.

[D] Conclusion

Fraud is something that should not be done whatever the context. Especially in the world of cryptocurrency which is an asset that was recently discovered, the existence of fraud in cryptocurrencies will make many people afraid to try to invest in cryptocurrencies. Let's together fix cryptocurrencies to be more friendly to all people, we also have to learn together how to deal with fraud in cryptocurrencies that are very difficult to contain.

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Thank you for reading my blog, hope it will be useful for readers.
I would also like to thanks professor @yohan2on for creating such an excellent study like this.
See you in the next post!!