The Biggest Cryptocurrency Scandals That Rocked the Industry in 2021
Cryptocurrency has been gaining more and more traction as a mode of payment and transfer in recent years. As with any industry, there have been scandals, mishaps, and missteps. The following are some of the biggest cryptocurrency scandals that rocked the industry in 2021.
1. Blow to Dogecoin promoters
Dogecoin has been one of the most talked-about cryptocurrencies since its inception. In early 2021, high-profile supporters such as Elon Musk, Mark Cuban, and Snoop Dogg expressed their admiration for the cryptocurrency, leading to a steep rise in its value. However, a tweet from Musk later in the year stating that he would no longer be supporting Dogecoin led to a significant loss in the coin’s value, leaving many of its promoters in turmoil.
2. Binance in regulatory hot water
Binance, one of the most prominent cryptocurrency exchanges globally, found itself in regulatory hot water in 2021. The exchange faced restrictions in countries such as the UK, Japan, and Canada, citing issues such as non-compliance with regulation and security concerns. Binance’s legal troubles serve as a reminder that even the largest exchanges are not immune to regulatory action.
3. Problems with Tether
Tether, a cryptocurrency pegged to the US dollar, has been a topic of controversy since its inception. In 2021, Tether found itself in the middle of a legal battle, with allegations of several improprieties. The outcome of the legal dispute is still unknown, but the controversy surrounding Tether has raised larger questions about the regulation of cryptocurrencies.
4. Crypto hacks and scams
Crypto hacks and scams have been a menace to the industry since its inception. In 2021, cybersecurity experts highlighted several notable incidents, including the $600 million cryptocurrency heist of Poly Network and the $50 million hack of THORChain. These events serve as a reminder that adequate security measures and protocols are vital in the cryptocurrency industry.
In conclusion, the cryptocurrency industry continues to grow and evolve at a rapid pace. While there are undoubtedly risks associated with investing and trading in cryptocurrencies, it is also an industry that has enormous potential. As investors and regulators continue to navigate the increasingly complex world of cryptocurrencies, it’s clear that the industry will continue to experience both triumphs and setbacks.
