Better Business Bureau Warns of Cryptocurrency Investment Scams on Tiktok

The Better Business Bureau (BBB) warned of cryptocurrency scams on the popular video-hosting platform Tiktok Friday. Founded in 1912, the BBB is a private, nonprofit organization that empowered people to find businesses, brands, and charities they can trust for over 110 years.

The BBB explained that ‘as Tiktok’s popularity grows, so do the con artists.’ Noting that it is seeing many new reports from its ‘Scam Tracker related to this money-flipping scam,’ the BBB described:

You are scrolling through Tiktok when you come across a video showing a pile of cash. The creator says they earned the stack of money in just a few days by investing in cryptocurrency.

Scammers on Tiktok may promise ‘to turn a few hundred dollars’ worth of cryptocurrency into thousands in no time at all,’ the BBB detailed, adding that they may even ‘have a 100% guarantee that they can triple your money in less than a week.’

The organization explained that ‘When you contact the supposed investor [scammer], likely through Whatsapp, Telegram, or another messaging app, they will be polite and professional,’ adding:

They will ask you to send money – usually, a few hundred dollars to start – through a digital wallet service like Paypal, Zelle or Venmo.

However, ‘When you try to get your money back, the scammer will claim you need to pay fees. At first, these amounts may seem harmless … They may ask for fees several times, always promising you will get much more back than what you are spending.’

‘If you question them, they may resort to scare tactics, telling you that if you don’t pay, you’ll miss out on the giant return or that they can take legal action,’ the BBB further cautioned, elaborating:

Unfortunately, any money you send will end up in the scammer’s pockets. You won’t be getting a return on your investment, and you won’t be getting your initial deposit back either.

The BBB concluded by giving some advice on how to avoid money-flipping scams. Besides using good judgment and doing your research, the organization cautioned people not to give into scare tactics and understand how digital wallet services work.

Morgan Stanley Analyst Says Crypto Economy’s Liquidity Improved, but There’s ‘No Huge Demand to Re-Leverage’

According to Sheena Shah, Morgan Stanley’s cryptocurrency research leader, the crypto winter is heating up as institutional investors have stopped the redemption of crypto’s top two stablecoins. According to the U.K.-based analyst, demand for leverage has fallen as well. Shah explained that there has been a huge shortfall in decentralized financing (defi), lending.

Shah noted in Monday’s investors’ note that there doesn’t seem like a lot of demand for re-leverage within the crypto world. Morgan Stanley’s lead cryptocurrency analyst added that it would be difficult for the crypto cycle to bottom if crypto leverage or fiat leverage does not grow.

Morgan Stanley’s Sha stated that the overall stablecoin market value, currently valued at, didn’t drop in value last week for the first time since April 20,22. According to the Morgan Stanley analyst, ‘extreme institutional debt’ has been temporarily suspended. According to current market data, the market capitalization for $153.26 Billion has increased by 2.6% over the past 30 days, while the usd coin (USDC), is down by 4.6%.

Morgan Stanley’s crypto researcher noted the USDC market value slide and also pointed out that it began in the first week July. The note Shah sent to investors explained that the USDC market cap fell before the regulatory changes and was similar to the declines seen in March and May.

Although September is traditionally a bad month for crypto, some believe that the Merge could change the 4-year trend.

This weekend, the crypto economy suffered some losses as its value fell from $1.18 trillion down to $1.06 trillion Monday afternoon (EST). As September is a historically bad month for crypto market history, people expect that the crypto economy will continue to fall. The Twitter account Bleeding crypto shared their thoughts on September’s sourness for crypto over the past four years.

“Each year, we see how terrible September is for crypto. But you want to believe that this time it’s different.” Bleeding Cyclo tweeted. Market participants believe that this September may be different despite the lower crypto prices.

It’s possible that The Merge will take place on September 15,. With the rest of crypto economy lifting, ethereum ( ETH) could see a significant increase in value. However, it’s possible that The Merge is priced inETH saw significant gains which helped to boost the crypto economy.

Huobi Becomes Latest Crypto Exchange to Receive Provisional Approval From Dubai Regulator

Huobi, an Asian cryptocurrency exchange platform has been approved provisionally by the Dubai Virtual Assets Regulatory Authority. The exchange released a statement stating that this approval allows Huobi’s United Arab Emirates-based entity to offer a complete suite of virtual asset exchange products.

VARA had issued another provisional license to OKX, a Seychelles-based cryptocurrency trading platform OKX before Huobi was given its approval. The regulator also issued licenses to Binance and FTX before this.

In a statement the crypto exchange stated that it will target professional investors. Huobi stated that OTC and spot trading services will be available to a small number of qualified investors and professionals.

Regional Headquarters

Huobi suggested that the provisional license would open the door to the establishment of the regional headquarters of the exchange in Dubai. Following the granting the provisional licence, Huobi Group CFO Lily Zhang stated:

Dubai Government has committed to making the Emirate a global digital hub and a leader in financial innovation. Huobi is positive about the city’s future potential and the opportunities it presents.

Zhang stated that her company is committed to the ‘fostering growth of the virtual assets industry there’.

Huobi stated in the statement that, in addition to the VARA license, it also has licenses in other areas such as South Korea and Japan.

Bitcoin miners shut off rigs as Texas power grid nears brink

Nearly all Texas industrial bitcoin miners have turned off their machines, as companies prepare for a heat wave which is expected to cause the state’s power grid to collapse.

Riot Blockchain, Argo Blockchain, and Core Scientific are just a few of the many crypto-mining miners who use millions of energy-intensive computers in order to secure bitcoin blockchain networks and earn token rewards. The Lone Star State’s low energy costs and liberal regulation on crypto mining attracted them to it. It has grown to be the largest crypto-mining center by computing power.

“There are more than 1,000 megawatts of Bitcoin mining load that has responded to ERCOTs conservation order by turning off their machines in order to conserve energy for grid. Lee Bratcher of the Texas Blockchain Association responded to Bloomberg via email. “This is nearly all the industrial-scale Bitcoin mining load in Texas, and allows for more than 1% of the total grid capacity to go back on the grid for commercial and retail use.”

The heat wave that keeps miners off their machines may cause a decline in profitability. This causes energy prices to soar and further stresses the state’s power grid. With bitcoin prices on the decline, miners already have difficulty repaying debt and raising capital. Public miners’ shares have fallen by 75% in the past year.

According to data from Texas’ Electric Reliability Council of Texas, Friday’s all-time energy peak record was 78,206 megawatts. This surpasses the July 5 unofficial all time peak of 77.460 megawatts. This operator is working with bitcoin miners who must turn off their machines when there are energy shortages.

Texas will likely face greater energy shortages in the near future. However, ERCOT anticipates that crypto miners will increase electricity demand by upto 6,000 megawatts mid-2023. This is more than enough to power all Houston homes.

Core Scientific CEO Mike Levitt stated that ‘Currently, all machines in Texas have been turned off to support the ERCOT grid. We have been reducing power in troubled times, including the current Texas heat wave, and we will continue to do so. He said that the company has six offices and less than 15% of its Texas production.

China Blockchain Alliance Executives: Virtual Currency the ‘Largest Ponzi Scheme in Human History’

Shan Zhiguang (chairman of the Chinese Blockchain Service Network Development Alliance) and He Yifan (executive director) claimed that virtual currency is ‘undoubtedly’ the most sophisticated Ponzi scheme in history. The Ponzi scheme is now ‘not about cash’, according to them.

The BSN chairman and his colleague start their attack on bitcoin and virtual currency in a recent opinion article published at People Daily Online newspaper. They point out that it has been ‘badmouthed’ by at most 90% of the 100 wealthiest people in the world. They also discuss the reasons they came to view Bitcoin and virtual currency negatively. They wrote:

This Ponzi scheme is classified as an “equity-type” and has three key characteristics. First, it can be denominated in equity; second, it can be traded and circulated; and finally, it cannot be Associated with any assets, productive labour, social value, or other resources. It is completely fictional.

The duo claims that the equity in virtual currency equity Ponzi scheme is not linked with any labor or real assets, so the risk is “close to infinity.” Zhiguang said that the characteristics of virtual currency are similar to those of an equity Ponzi scheme. Yifan also stated that they were consistent.

Blockchain must not be ignored

The article also includes Yifan and the BSN chairman, who use the example dogecoin as an example to illustrate how one person can control or manipulate the value of virtual currencies.

“So it’s clear that Musk can make dogecoin a cloud and turn it into rain. The duo claimed that a simple tweet could make virtual currency’s price flat.

Zhiguang, Yifan and others argued that virtual currency should not be considered. However, they insisted in an opinion piece that blockchain technology is important because it anchors many cryptocurrencies. However, the duo suggested that regulation technology was still necessary to ensure the blockchain’s’major role in different application fields.