Cryptocurrency Risks, Fraud Cases, and Financial Performance
In this study, we examine major cryptocurrencies, present notable fraud cases, describe fraud risks, and analyze cryptocurrency financial performance. People debate whether cryptocurrency is an investment opportunity, the new Dutch Tulip Bubble, or a giant Ponzi scheme. There have been a number of h...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-02-01
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| Series: | Risks |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-9091/11/3/51 |
| _version_ | 1797609121340456960 |
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| author | David S. Kerr Karen A. Loveland Katherine Taken Smith Lawrence Murphy Smith |
| author_facet | David S. Kerr Karen A. Loveland Katherine Taken Smith Lawrence Murphy Smith |
| author_sort | David S. Kerr |
| collection | DOAJ |
| description | In this study, we examine major cryptocurrencies, present notable fraud cases, describe fraud risks, and analyze cryptocurrency financial performance. People debate whether cryptocurrency is an investment opportunity, the new Dutch Tulip Bubble, or a giant Ponzi scheme. There have been a number of high-profile fraud cases associated with cryptocurrencies, such as the FTX scandal in late 2022, thereby making fraud a real concern to current and potential future investors. Regarding financial performance, cryptocurrencies experienced a major collapse in value in the most recent period of the study, about three times worse than the major stock market indices. While in prior periods, cryptocurrencies have significantly outperformed stock market indices, recent fraud cases and the extreme volatility of cryptocurrencies indicate that investing in cryptocurrencies comes with much higher risk than traditional stock market investments. The debate over the investment potential of cryptocurrencies continues, whether they have long term value or are simply the new Dutch Tulip Bubble. The study’s findings will be useful to investors, regulators, and academic researchers regarding the cryptocurrency industry. |
| first_indexed | 2024-03-11T05:57:04Z |
| format | Article |
| id | doaj.art-33e0d171416749a5b5d8b120f3ec71a1 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-11T05:57:04Z |
| publishDate | 2023-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-33e0d171416749a5b5d8b120f3ec71a12023-11-17T13:41:41ZengMDPI AGRisks2227-90912023-02-011135110.3390/risks11030051Cryptocurrency Risks, Fraud Cases, and Financial PerformanceDavid S. Kerr0Karen A. Loveland1Katherine Taken Smith2Lawrence Murphy Smith3Turner School of Accountancy, Belk College of Business, University of North Carolina at Charlotte, Charlotte, NC 28262, USADepartment of Management & Marketing, Texas A&M University-Corpus Christi, Corpus Christi, TX 78412, USACollege of Business, RELLIS Campus, Texas A&M University-Corpus Christi, Bryan, TX 77807, USADepartment of Accounting, College of Business, RELLIS Campus, Texas A&M University-Corpus Christi, Bryan, TX 77807, USAIn this study, we examine major cryptocurrencies, present notable fraud cases, describe fraud risks, and analyze cryptocurrency financial performance. People debate whether cryptocurrency is an investment opportunity, the new Dutch Tulip Bubble, or a giant Ponzi scheme. There have been a number of high-profile fraud cases associated with cryptocurrencies, such as the FTX scandal in late 2022, thereby making fraud a real concern to current and potential future investors. Regarding financial performance, cryptocurrencies experienced a major collapse in value in the most recent period of the study, about three times worse than the major stock market indices. While in prior periods, cryptocurrencies have significantly outperformed stock market indices, recent fraud cases and the extreme volatility of cryptocurrencies indicate that investing in cryptocurrencies comes with much higher risk than traditional stock market investments. The debate over the investment potential of cryptocurrencies continues, whether they have long term value or are simply the new Dutch Tulip Bubble. The study’s findings will be useful to investors, regulators, and academic researchers regarding the cryptocurrency industry.https://www.mdpi.com/2227-9091/11/3/51cryptocurrencyBitcoinfraud riskfinancial investmentPonzi scheme |
| spellingShingle | David S. Kerr Karen A. Loveland Katherine Taken Smith Lawrence Murphy Smith Cryptocurrency Risks, Fraud Cases, and Financial Performance Risks cryptocurrency Bitcoin fraud risk financial investment Ponzi scheme |
| title | Cryptocurrency Risks, Fraud Cases, and Financial Performance |
| title_full | Cryptocurrency Risks, Fraud Cases, and Financial Performance |
| title_fullStr | Cryptocurrency Risks, Fraud Cases, and Financial Performance |
| title_full_unstemmed | Cryptocurrency Risks, Fraud Cases, and Financial Performance |
| title_short | Cryptocurrency Risks, Fraud Cases, and Financial Performance |
| title_sort | cryptocurrency risks fraud cases and financial performance |
| topic | cryptocurrency Bitcoin fraud risk financial investment Ponzi scheme |
| url | https://www.mdpi.com/2227-9091/11/3/51 |
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