Eight Things Cryptocurrency Enthusiasts Probably Won’t Tell You


Contrarian views are foundational to a well-informed understanding of any subject, and this article is an excellent compendium of reasons why the crypto industry is in a highly irrational and turbulent state. The author isn't trying to disparage the crypto space broadly (like we've recently seen from certain Wall St. incumbents), but provides specific points such as the high prevalence of scams, crime, theft, deceit, ignorance, and irrationality that reinforce each other as millions of retail investors pour money into tokens with no understanding of their underlying functionality. 

One former insider at an exchange who reviewed this article summarized it as the following:
The cryptocurrency world is basically rediscovering a vast framework of securities and consumer protection laws that already exist; and now they know why they exist. The cryptocurrency community has created an environment where there are a lot of small users suffering diffuse negative outcomes (e.g., thefts, market losses, the eventual loss on ICO projects). And the enormous gains are extremely concentrated in the hands of a small group of often unaccountable insiders and “founders.” That type of environment, of fraudulent and deceptive outcomes, is exactly what consumer and investor protection laws were created for.


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