The altcoin industry is a multi-billion dollar one, and many individuals have become millionaires in buying and trading these coins. However, you should tread cautiously if you venture into this investment arena.
Have you heard about the cryptocurrency scams going on in the social media platforms?
Facebook Inc. has, and that’s why they recently banned all cryptocurrencies, initial coin offerings, and binary options ads. The company called these marketing programs misleading and deceptive practices. However, even with the ban on cryptocurrency, the coin’s promotion has found its way onto Facebook.
Twitter is now joining Facebook and attempting to stop scams related to the altcoins.
Twitter is aware of “manipulation” and is putting in safeguards to “prevent these types of accounts from engaging with others in a deceptive manner,” a spokesman for the company said but did not give further details.
The new policy was exposed by Bloomberg after Twitter issued a caution note appearing on a @Bitcoin handle profile stating, “Caution: This account is temporarily restricted. You’re seeing this warning because there has been some unusual activity from this account.”
The verified @Bitcoin handle account provides service to Kraken trading platform users. One of the largest cryptocurrency exchanges in the world eventually got its ban lifted. The reason they were banned was that they were trying to alert customers to various ways thieves are stealing digital assets online.
“Crypto-spam reached untenable proportions recently,” Emin Gün Sirer, an associate professor at Cornell University told Bloomberg. “It was impossible to discuss any topic without having some spammer jump in, impersonate a crypto celebrity, and try to collect coins from people with promises of easy gains.”
There has been a crackdown by regulators in the U.S. The Securities and Exchange Commission got a court order freezing the assets of an alleged initial coin offering by AriseBank. Also, the Bank of England governor, Mark Carney, recently called for greater regulation into the industry to end the “anarchy.”