The Blockchain industry has yet to fully escape its’ association with a wide variety of scams. This does not mean that progress has not been made, but that investor and overall market manipulation is still possible.
For perhaps two of the top examples of why this is true, check out Bitwise’s recent report that indicated that the wide majority of global Bitcoin trading volume is being faked. Secondly, check out today’s headline from CoinDesk about Enron and the Blockchain.
If you remember anything about Enron, then you’ll remember that its’ executives were involved in one of the biggest instances of fraud and insider trading in United States history. Their former CEO, Jeffrey Skilling, was just recently released from a 12-year prison sentence.
What is most notable about this is two-fold. First, Skilling and one or more of his compatriots seem to have learned nothing from what happened in the past. Second, Skilling is thinking of starting what CoinDesk has termed “a blockchain platform.”
Normally, this still would not be exactly newsworthy since fraudsters often circle back to what they know best, but according to the Wall Street Journal article that broke the news, Skilling has received the attention of blockchain professionals of some sort. In other words, some group of people who have some knowledge of how to build such a venture have taken his idea seriously.
If the Blockchain industry wants to shed the label of being an early-stage sector with a high concentration of scams and similar activities, then perhaps more should be done to discourage this sort of collusion.
One way to do so would be to encourage transparency across the space. All projects might begin to have names attached to them and not pseudonyms, but this would likely not work, simply due to how Bitcoin began. However matters turn out related to this new Enron project, which is also reportedly related to the energy sector, expect some sort of wider backlash to follow that might hit the crypto markets. The only way to stop this in its’ tracks is to make sure it never gets off the ground.
By: BGN Editorial Staff