The issues current in crypto are diverse when it extends to investing in new and upcoming projects.
Mostly, it must go on trust and gut instinct, at times even if it seems legitimate from the outset, it still ends up being the wrong investment.
There are external tools available that can provide some safety measures in terms of basic warnings, but these can also be false flags as additional research needs to be carried out to pinpoint the catalysts to make it a safer investment.
Even so, it is still a gamble and investors end up losing their funds, at times, amounting to exponential amounts.
There is no real mechanism or deterrent, nor a safeguard of users’ funds if the project is illegitimate, to either retrieve the said funds, an investigation to take place, record information of the event for reference, support for the victims, and many other aspects that have a negative impact when these incidents take place.
The service providers, be it the swap exchange or wallet handler, practically do nothing after the fact, simply provide a generic response to be “more vigilant next time” and various comments from community members consisting of “it is a decentralised system“, “you are your own bank” or “you failed on basic OPSEC“.
Though this is somewhat true, it is either too late, acts as a deterrent to potential new investors and it is not clear moving forward what can be done and specific information on avoiding the security risks involved in the future.
Moreover, there is lack of development and security protocol on the part of the service providers, there is no follow-up with the victims.
It is on many occasions simply “brushed under the carpet” without the adverse effect taken into consideration on the individuals concerned, parts of the community, and the wider new investor entrants that sometimes have fear to take the leap into the crypto space for these specific reasons.
Whether crypto communities, service providers, the wider crypto media relations, and beyond, accept or disagree, and lack of coverage of the problems in terms of security, regulation may be imminent and only a matter of time.
One of the main reasons for this is the missing link to security of investors‘ money by organisations that rake in profits from the same investors that are not assisted when circumstances take a wrong turn and no support is presented thereafter.