Abstract
Ponzi schemes have had a profoundly negative impact on the cryptocurrency market, eroding investor confidence, attracting stringent regulatory scrutiny, and contributing to significant market volatility. High-profile scams such as BitConnect have led to substantial financial losses, fostering skepticism towards new and legitimate cryptocurrency projects. The increased regulatory scrutiny resulting from these schemes has led to stricter regulations, potentially stifling innovation and growth within the market. Additionally, the negative media coverage associated with Ponzi schemes perpetuates the perception that the cryptomarket is rife with fraud, deterring mainstream adoption and fostering a biased public view. This paper explores the multifaceted negative impacts of Ponzi schemes on the cryptomarket, highlighting their role in undermining trust, instigating legal repercussions, and causing market instability. The findings underscore the need for enhanced regulatory frameworks and investor education to mitigate the risks associated with Ponzi schemes and restore confidence in the burgeoning field of cryptocurrency.
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