Avraham Hinoch, VP of Marketing and Strategy at WeCcelerate, on the Connection Between the Global Recession and the Crypto Market Crash — and How Investors Can Be Protected in a Volatile Market Trying to Avoid Institutional Regulation. Watch the TV Interview
“The market already took a hit six months ago. It started with the collapse of the NFT world, which was based on the Ethereum currency, and continued with the war between Russia and Ukraine. And now we’ve reached the third drop — the global recession. It’s important to understand: this is a very new and immature market, and there were many scams and fraudsters trading in it, simply because this market lacks regulation,” says Avraham Hinuch, VP of Marketing and Strategy and Head of the WEB3 Division at WeCcelerate.
— At the end of the day, we’re talking about something in which we put money, information, and technology. There needs to be an agreement that protects this field.
“It really is that kind of market. The financial services sector in the digital world — crypto currencies — emerged after the 2008 crisis. People lost trust in the establishment’s ability to manage money properly and wanted self-control. That’s how a community arose, saying: we want to control our own investments and our financial portfolios. So naturally, it went against regulation.
But there still needs to be some kind of entity that balances the market to prevent the entry of scammers and the artificial inflation of coins, which has happened quite a lot in the past two years. In the stock market, we have the Securities Authority, which can prevent stock manipulation by companies. But in the crypto market today — you have no such safeguard.”
“There must be some form of community agreement to block these scammers from entering the market. There’s no doubt the market must go through this. In the end, it’s an innovative technology — just like the early days of the internet in the 2000s when there was a lot of phishing and fraud. The same is happening in this world — it’s a new and very important technology for the market. But we must still prevent those scams and deceptions from entering.
That’s the main conflict: how do we block bad actors without subjecting the market to the standard regulations that exist in the financial world today.”
Watch the TV Interview