$314,030)China is seemingly propagating several warnings over different mediums for protecting the cryptocurrency investors’ interests. After the recent issuance of a statement which trifurcated fraudulent cryptocurrency platforms into broad groups, the China Central TV (CCTV) carried out a similar agenda.
Largest TV Outlet Warns Investors
With a viewership of over 1.2 billion people, the CCTV is undeniably a major source of communication for citizens, with any broadcasted information reaching at least a few hundred million viewers.
According to China Banking News, the media mammoth ran an investigative news report on May 21, 2018, pertaining to the perils of investing in cryptocurrencies and their related products. Interestingly, the channel issued a warning that “a bubble continues to brew,” with regards to all cryptographic forms of money.
Titled “Blockchain Cryptocurrency Bubble Accumulates,” the news reported that 2017’s blanket ban on cryptocurrencies did little to deter Chinese citizens from investing in the volatile asset class. Additionally, it cited the example of a distraught investor, who reportedly lost over tens of millions of yuans in 2018, as a means of proving its agenda.
Yang Chao, a citizen of China, made “mistimed bets” on bitcoin since the start of 2018, with the report stating:
“In actuality, this isn’t the first time that Yang Chao has speculated on coins. Prior to the banning of ICO’s and cryptocurrency trading platforms, his losses already exceeded two million yuan ($314,030).”
CCTV’s $750 million office building. Source: Business Insider
Investor Blames Government for Losses
For Chao, the government has failed to protect the investments of investors like himself, adding that the ban made little effect on the cryptocurrency market in China. However, Chao believes that cryptocurrency investors are few in number, owing to the inherent volatilities of the digital asset class.
“In the less than ten years since their emergence, the price of bitcoin has exceeded 120,000 yuan ($18,838). Given such a mad increase, the allure of becoming rich overnight has attracted a large volume of investors.”
Interestingly, the news made no comments on Chao’s trading skills or expertise, solely focussing on showing cryptocurrencies in a bad light.
Cryptocurrency Scams ‘Easy to Conduct’
The report ends with a stern warning issued on the many perils related to investing in virtual currencies.
“Even if there are no projects backing coins made of air, as long as capital is willing, there is still the possibility of large-scale gains in prices.”
Furthermore, the state-owned TV network pointed out a lack of regulations and legal structures for the cryptocurrency space as being an integral factor in deceitful promoters “readily making off with the funds of small investors.”
The report concluded:
“The lack of openness, the lack of transparency, the instability of prices, as well as the expectation amongst investors that they will become rich overnight, has magnified risk on the virtual currency market.”