The famous name, who served as the Chair of Finance at Sabancı University, Prof. Dr. Ozgur Demirtas; came up with a new warning about cryptocurrencies. Demirtaş argued that investments should not be made in certain altcoin projects. Here are the details…
Özgür Demirtaş warned against these altcoin projects
Demirtaş made a post on Twitter. Pointing out that the level of financial literacy in the country is low in his sharing, Demirtaş pointed out that mistakes were made because of this. Özgür Demirtaş pointed out a mistake that investors make all the time. According to the economist, people “should not invest all their money in one product”. In other words, Demirtaş points to portfolio diversification. Demirtaş uses the following expressions in his tweet:
Dear Friends: Financial Literacy in our country is very low. That’s why we make mistakes. I ask you not to invest with the advice of a friend. Don’t put all your money into a single investment. Not investing in coins issued by people such as Türkücü, Singer, etc.
Some investors are suffering
Economist Özgür Demirtaş seems to have posted his tweet to protect investors. As we have also reported as Kriptokoin.com, some coins issued by known people can be scams. In other words, investors can buy the coin in question and incur losses. Because those behind the project can steal money with a type of fraud called “rug pull”. In Rug pull, the people behind the project take investor money and run.
Even without scams, pumps and dumps are more common with these types of coins. In other words, a coin can be traded at very high levels at first. After that, a bullish sentiment prevails. However, with the altcoin rapidly losing its value, investors may suffer losses.
Crypto scams are quite common
In fact, fraud, or rather crypto fraud, is not a new phenomenon. What has fundamentally changed is the ease with which scammers can reach millions, if not billions, at the push of a button. The internet and other technologies have simply changed the rules of the game, with cryptocurrencies representing the forerunner of these new cybercrime opportunities. A January 2022 report from blockchain data platform Chainanalysis suggests that close to $14 billion was stolen from investors using cryptocurrencies in 2021.
For example, in 2021, two brothers from South Africa managed to defraud investors of $3.6 billion from a cryptocurrency investment platform. In February 2022, the FBI announced that it had arrested a couple using a fake cryptocurrency platform to defraud investors for another $3.6 billion. For this reason, many experts, such as Özgür Demirtaş, tell investors to be careful. As we mentioned, while not fraudulent, an investment made without thinking about it can result in loss of value.
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