The widespread impact of cryptocurrency investment scams that have hit the headlines in recent weeks highlights the need for improved financial literacy among investors, especially the young, as well as tougher regulations to prevent these financial crimes.
After a number of incidents like the high-profile Luna crash, which saw a 99.9% drop in the price of the currency, public confidence in these digitally mined cryptocurrencies has plummeted. In Thailand quite a few scams have emerged involving famous people, with accumulated losses surpassing billions of baht, triggering alarm bells about this kind of business.
Moreover, a large share of the victims are young. Some are students who are not yet able to earn their own income, but rather chose to gamble with their parents or grandparents’ money or savings which were intended for their education. They fall for these scams as a result of the prevailing “get-rich-quick” attitude, ignoring the risks accompanying these investments, some of which are run like a chit fund similar to the infamous Mae Chamoy shares that exploited the tactics of speculators.
Reports from the National Economic and Social Development Council (NESDC) show that more than half of cryptocurrency investors are under 30 years of age. About 47% are aged 21-30 while 3% are teenagers or younger. According to a study by Mahidol University study, the…
