β€‹β€‹πŸŽ­ Chainabuse platform or how to battle crypto scam 🎭

According to the latest research, one of the main reasons people still do not invest in crypto is the lack of market regulation and legal framework. Retail investors are justifiably afraid of losing their funds irrevocably on scam projects, which became especially relevant after the collapse of UST and LUNA.

βœ… To protect users from fraud, crypto market giants have announced the launch of the Chainabuse service, allowing to report hacker attacks or scam projects. Binance.US, Circle, Solana Foundation, The Aave Companies, Hedera, TRM Labs, and Civic are the project’s founders. Chainabuse is designed as a one-stop platform where crime victims in the crypto market can report, discuss, and issue warnings about illegal activity to reduce fraud effectiveness.

TRM Labs added that it is common for crypto projects today to post disclaimers and warnings on social media like Twitter and Discord, but such messages usually get lost in the news feed. Chainabuse public forums will become a solution, where participants will be able to vote, leave comments, and communicate with others. A database of illegal activities is also available on the platform, which can save you from investing in scam projects. The broader goals of the initiative include forming a conscious crypto community that works together to fight fraud for the industry’s benefit.

βœ… It is vital to understand that illegal activity and scam projects are severe barriers to mass adoption. In 2021, cybercriminals stole more than $14 billion worth of cryptocurrencies, most of which came from the DeFi sector, according to Chainalysis. There is no doubt that UST and LUNA investors have lost millions of dollars. The leading South Korean law firm, LKB & Partners, already intends to sue Terraform Labs CEO Do Kwon.

Interestingly, the only exchange that protected its users from the UST collapse was OKX. The platform released funds from UST staking and allowed to exchange them at an acceptable rate. Analysts believe that such a mechanism became possible due to the OKX centralization: the company had a task force that monitored the LUNA dynamics and evaluated the risks.

We also want to emphasize that you should rely only on your skills and knowledge regarding the crypto market. Do not neglect the security measures on exchanges, diversify risks, and do not invest all your savings in crypto to “get rich fast”. Only a systematic and regular approach can give a positive long-term result.Β 

πŸ€” What do you think about the new initiative? Would you use the Chainabuse platform to fight scams in crypto?