Fraud Stamp Bulletin — January 2021

An Overview

Crypto News

XRP is Dead!

Stable Coin Developments

In January 2020 Tether had a market cap of $4bn. That figure now stands at $24B commanding 76% of the stable coin market. Facebook announced in November 2020 that it was changing the name of its own stablecoin project from Libra to Diem. It plans to launch this year subject to gaining approval from the Swiss financial regulator as the organisation behind the coin is based in Switzerland. This however is only the first step, they will still have to obtain all the necessary licences in the US before they can allow US customers to buy. It does appear that the government is taking an extra interest in stable coins with a new bill presented to congress which would require stable coin issuers to secure bank charters. Legislation is a few years away yet. Investors should ensure they are not holding Tether when that time comes because with their current problems and history it is highly unlikely the US or any other developed world regulator would grant them a stick of candy not alone a licence! It is interesting to note the regulated exchange Coinbase do not offer a market in Tether although they did offer a market in XRP which was a big mistake.

The Next Big Thing?

Photo by Manish Panghal on Unsplash

Too Good to be True

The days of the stock scam didn’t die when the infamous Jordan Belfort was wrestled to the ground by the FBI. No, it is alive and well. But with most things in life the scammer must adapt or die. No longer does he run boiler rooms out of Long Island or Bangkok. He has to be a whiz on social media for this is his new weapon. Social media and online marketing through the likes of Google and Facebook has been a blessing for our enemy the scammer. His overhead is a fraction of his predecessors and his geographic reach is only limited by his willingness to use Google translate. Investing in a startup or a company with exciting prospects has always been tempting from the days of The South Sea Company back in the 1700s. The challenge now for the scammers is to get the ‘target’ on the phone to close him or her. The way he does that is by advertising through various channels to generate leads which he then calls up with the intention of closing the target or making the sale. The leads and the close are the essential part of any scam. So when we spotted the words ‘A 10,000% Return on Investment Opportunity’ on a Google ad it confirmed our thinking. The scammer is still alive and well and probably busier than ever with everyone sitting at home with time on their hands and money to burn. Especially in the times of the pandemic don’t be tempted by these attention grabbing headlines.



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Fraud Stamp

Fraud Stamp

A wise investor is a well informed investor. We aim to identify and help investors manage risk. From cryptocurrency to property, from stocks to fine wine.