Canadian Money Forum banner

141 - 160 of 190 Posts

·
Registered
Joined
·
6,794 Posts
No, we shouldn't. Which is why simply getting my phone number will not let you wire all my money to Nigeria overnight. Crypto does away with all the other layers of security so of course it needs bulletproof authentication. It's as much as flaw as it is a feature.
It has bulletproof authentication.
The feature is that you don't need to trust anyone else
 

·
Registered
Joined
·
5,039 Posts
No, we shouldn't. Which is why simply getting my phone number will not let you wire all my money to Nigeria overnight.
SIM porting has indeed caused money to be drained out of Canadian banks. Just google "SIM swapping scam" for many example in Canadian news and warnings from authorities

The banks have written that it is your responsibility to protect your password and personal details. So besides the hassle of dealing with a bank, it is in good faith that they cover your loss

Someone stole your cell number? Acting fast is critical, this industry expert says

Fraud Prevention How to protect your bank accounts from the SIM swapping scam
 

·
Registered
Joined
·
22 Posts
SIM porting has indeed caused money to be drained out of Canadian banks. Just google "SIM swapping scam" for many example in Canadian news and warnings from authorities

The banks have written that it is your responsibility to protect your password and personal details. So besides the hassle of dealing with a bank, it is in good faith that they cover your loss

Someone stole your cell number? Acting fast is critical, this industry expert says

Fraud Prevention How to protect your bank accounts from the SIM swapping scam
Same with credit cards.. The banks are willing to accept some losses in order to encourage their use (especially online) and have done this for years. But it would be silly to say that we have not heard of credit card scams (theft), interac transfers used to steal peoples funds from a bank and a ton of other things that can happen when someone has breached your main email account and other services (paypal, etc).
 

·
Registered
Joined
·
6,794 Posts
Any thoughts if the Trump administration will be able to push through the new crypto currency regulations or not?
The delisting of "privacy coins" by many brokerages is a bit concerning.
 

·
Registered
Joined
·
22 Posts
Any thoughts if the Trump administration will be able to push through the new crypto currency regulations or not?
The delisting of "privacy coins" by many brokerages is a bit concerning.
It's possible, but once that's done it could push the more "legit" and open coins higher as the institutions will be less afraid that they will go after those.
 

·
Registered
Joined
·
6,794 Posts
It's possible, but once that's done it could push the more "legit" and open coins higher as the institutions will be less afraid that they will go after those.
Sorry, I consider the coins which are fully traceable and tracked by the government suspect.

I also don't know what you mean by "legit"
 

·
Registered
Joined
·
22 Posts
Sorry, I consider the coins which are fully traceable and tracked by the government suspect.

I also don't know what you mean by "legit"
They may be suspect to me and you, but to the average investor they will appear more trust worthy as the government is less likely to shut them down over privacy coins. By "legit" I mean anything they are not actively attacking with legislation (privacy coins, previous ICOs/unregulated securities offerings, foreign controlled coins perhaps).
 

·
Registered
Joined
·
6,794 Posts
They may be suspect to me and you, but to the average investor they will appear more trust worthy as the government is less likely to shut them down over privacy coins. By "legit" I mean anything they are not actively attacking with legislation (privacy coins, previous ICOs/unregulated securities offerings, foreign controlled coins perhaps).
Well if I take money from my wallet and give it to you, there should be no need to report it to the government.
It's none of their business.

Also "foreign controlled" is an interesting definition.
 

·
Registered
Joined
·
22 Posts
Well if I take money from my wallet and give it to you, there should be no need to report it to the government.
It's none of their business.

Also "foreign controlled" is an interesting definition.
Depends.. are you saying you are giving me a gift or what is the reason for that money transfer? Even barter is a taxable event which means we must report.. Gifts can be given (In Canada) tax free (but that's an exclusion they allow for).
Also, large amounts must be reported to the government with a reason (even if you are transferring from one of your own accounts to another in a bank).
 

·
Registered
Joined
·
6,794 Posts
Depends.. are you saying you are giving me a gift or what is the reason for that money transfer? Even barter is a taxable event which means we must report.. Gifts can be given (In Canada) tax free (but that's an exclusion they allow for).
Also, large amounts must be reported to the government with a reason (even if you are transferring from one of your own accounts to another in a bank).
I don't want to live in a police surveillance state.
 

·
Registered
Joined
·
13,790 Posts
No you don't, that's actually the point, you don't need to hold it in an exchange, it's just "convenient".

I personally have some crypto, I've never held it on an exchange.

If you buy cryptocurrencies, for the advantages of cryptocurrencies, trusting or holding them on an exchange is dumb and defeats the point.
It's like owning physical gold by ETF.
I said you have to:

trust an exchange

OR

trust your own security precautions

Most people are overconfident with their ability to secure their holdings.
 

·
Registered
Joined
·
22 Posts
I said you have to:

trust an exchange

OR

trust your own security precautions

Most people are overconfident with their ability to secure their holdings.
Absolutely. But there are some trust worthy exchanges now (Coinbase, Gemini) and some "relatively easy" ways to store coins safely (Ledger, Trezor).
 

·
Registered
Joined
·
20,456 Posts
Discussion Starter · #153 ·
It will be very interesting if it turns out that the actual scam (the fraud) is the "stable coins".

Apparently a lot of BTC/ETH speculators swap their coins for "stable coins" to exit their positions. What if BTC/etc were just speculative vehicles -- the exciting hook -- to suck the money into the ecosystem. And then the stable coins (where people believe they are storing cash) are the actual fraud.

The way that scam would unfold is that things seem normal for a while, until there is a sudden big failure in the stable coins, where -- poof -- the money disappears. It would not be any fault of BTC/ETC and those vehicles would be perfectly fine, in this scenario.

So many ways this scam can unfold. I can't wait to find out! Scam artists are very ingenuous people.
 

·
Registered
Joined
·
22 Posts
It will be very interesting if it turns out that the actual scam (the fraud) is the "stable coins".

Apparently a lot of BTC/ETH speculators swap their coins for "stable coins" to exit their positions. What if BTC/etc were just speculative vehicles -- the exciting hook -- to suck the money into the ecosystem. And then the stable coins (where people believe they are storing cash) are the actual fraud.

The way that scam would unfold is that things seem normal for a while, until there is a sudden big failure in the stable coins, where -- poof -- the money disappears. It would not be any fault of BTC/ETC and those vehicles would be perfectly fine, in this scenario.

So many ways this scam can unfold. I can't wait to find out! Scam artists are very ingenuous people.
Could be the case for USDT.. Unlikely the case for USDC (which is regulated).

Also, coins like DAI are done with liquidity and code.. could be a scam, but also they are being monitored and checked constantly.
 

·
Registered
Joined
·
6,794 Posts
It will be very interesting if it turns out that the actual scam (the fraud) is the "stable coins".

Apparently a lot of BTC/ETH speculators swap their coins for "stable coins" to exit their positions. What if BTC/etc were just speculative vehicles -- the exciting hook -- to suck the money into the ecosystem. And then the stable coins (where people believe they are storing cash) are the actual fraud.

The way that scam would unfold is that things seem normal for a while, until there is a sudden big failure in the stable coins, where -- poof -- the money disappears. It would not be any fault of BTC/ETC and those vehicles would be perfectly fine, in this scenario.

So many ways this scam can unfold. I can't wait to find out! Scam artists are very ingenuous people.
I don't think ETH is a scam.

I do think crypto is a great place for scammers to try and profit from legitimate technologies.

Tulips aren't a scam, they're my second favourite flower.
That doesn't mean there weren't scammers during the tulip bubble.
 

·
Registered
Joined
·
6,794 Posts
I don't see how it could be a scam. It is a speculative bubble.
Some are scams, they preassign themselves a lot of coins, then list them and simply cash out.

The thing about established coins is that they aren't massively premined so that specific scam won't work.
 

·
Registered
Joined
·
20,456 Posts
Discussion Starter · #158 ·
I don't see how it could be a scam. It is a speculative bubble.
Sure, it's a speculative bubble, but it could also be a pump & dump scam.

The way it could be a scam is that BTC, ETC, and many of these other "coins" have concentrated ownership. There are few people who hold large amounts of them. The active trading volume is just a small fraction of total coins.

That opens the door for manipulation. Many coin exchanges have also been caught doing wash trades and manipulating prices, so we have lots of reason to believe that coin prices are manipulated by big players. There are many fake trades happening which aren't real market trades -- but they move the ticker upward.

The way it could all be a scam is that a relatively few number of large players could be orchestrating a pump & dump fraud. It's possible that there are very few coins in active circulation in true public trading. If the actual trading volume is low... very possible and no way to confirm... then it's easy to manipulate the prices. And easy to run a pump & dump scheme.

The price manipulation and ticker manipulation causes the pumping, which excites more people and draws more money in. That's the pump. Next would come the dump, as large holders sell to the gullible latecomers.

That's what you get with unregulated securities. We don't know for sure whether it's a pump & dump scam but I think it's possible.
 

·
Registered
Joined
·
200 Posts
I'm having such a strong early 2018 déjà vu right now. It was only 3 years ago but somehow people haven't learned. Nothing has changed by the way, this is still a virtual "currency" that has no use in everyday life and will never be adopted by governments. The shitshow will be spectacular when it starts trending down.
 

·
Registered
Joined
·
6,794 Posts
Sure, it's a speculative bubble, but it could also be a pump & dump scam.

The way it could be a scam is that BTC, ETC, and many of these other "coins" have concentrated ownership. There are few people who hold large amounts of them. The active trading volume is just a small fraction of total coins.

That opens the door for manipulation. Many coin exchanges have also been caught doing wash trades and manipulating prices, so we have lots of reason to believe that coin prices are manipulated by big players. There are many fake trades happening which aren't real market trades -- but they move the ticker upward.

The way it could all be a scam is that a relatively few number of large players could be orchestrating a pump & dump fraud. It's possible that there are very few coins in active circulation in true public trading. If the actual trading volume is low... very possible and no way to confirm... then it's easy to manipulate the prices. And easy to run a pump & dump scheme.

The price manipulation and ticker manipulation causes the pumping, which excites more people and draws more money in. That's the pump. Next would come the dump, as large holders sell to the gullible latecomers.

That's what you get with unregulated securities. We don't know for sure whether it's a pump & dump scam but I think it's possible.
For the big coins the few people is several thousand accounts.

For small coins (or sh!tcoins) sure, lots of pump and dump.

I agree this is the issue with unregulated markets. You likely don't know what is going on, and disclosure is weak.
But if you still choose to invest... that's your choice.
 
141 - 160 of 190 Posts
Top