I hate to be the bearer of bad news, but it seems that regulation might be hitting the crypto space very very soon.

The amount of rug pulls going on now is alarming. There are the major ones we all hear about, but then there are the ones we never hear about.

I personally decided to join as many telegram groups as I saw advertised for presales and fundraising. I successfully joined about 15 in just two days. Out of those, only 1 was somewhat legitimate because they still have their liquidity intact. 5 of the projects never made it past the presale, and disappeared with investors money. The rest made it past the presale to launch, but abandoned the project in just a day, or completely removed the liquidity and set shitposts to the group.

This kind of behaviour from the crypto project creators is what will lead to regulation.

What regulation might mean for crypto

While it might not seem like a big deal at first, regulation will be a pretty big deal for DeFi in general. First off, yield farming might be stopped, because regulated asset classes that beat the stock market are a sin. In addition, many DEXs will be shut down, and so will bridges that swap to centralised chains (like BSC).

Of course, the regulation will reduce the rate of scams in the space and will ensure scammers pay for their crimes, but it will also adversely affect the space in general.

How can we prevent regulation then?

Well the first step is for users to do their own due diligence. Does the project want to raise thousands of dollars but doesn't have a website? It's a scam

Do they not have a decent logo? Scam.

Are their group admins always talking about prices and how the token will moon? Scam.

Are they promising ALL the features of their roadmap after the sale? Big scam.

There are ways to do due diligence instead of wiring them your crypto instantly.

Also, I believe that scammers should be actively tracked down and taken care of when they are found. If a few are caught after their actions,it will scare the others to behave well.

What do you think of the upcoming regulations? Do you think there will be regulations at all? Let me know down below!

Thanks for reading!