3 Reasons Why Tokoverse Offers the Gold Standard for Crypto Investor Protection
Since 2017, the International Organization of Securities Commissions (IOSCO) has been organizing annual World Investor Week (WIW) conferences to highlight the importance of enhancing investor protection through investor education with the fifth and latest edition of the IOSCO’s WIW having taken place from 4 to 10 October 2021. Over the years, the regulatory approach of financial investors markets have evolved from the traditional doctrine of caveat emptor (“let the buyer beware”) to adopting higher ethical standards which place primacy on the interests of investors with the focal point being on retail investors who may be lacking the necessary knowledge about financial investment products or the requisite skill sets to assess the suitability of such products for their financial standing and risk appetite.
In the specific context of the crypto market, the newfound and fast-changing nature of cryptocurrencies results in the information asymmetry between the issuers of cryptocurrencies and the providers of crypto-related services vis-a-vis crypto investors and traders being relatively wider than that in the conventional financial investment markets. This wider information asymmetry results in there being a more pressing need for enhanced investor protection for crypto investor and traders, particularly retail ones, which in turn means that there ought to be at the minimum, a certain degree of moral responsibility on the part of crypto industry players to protect crypto investors and traders from the hazards of crypto investing such as thefts, scams and the effects of market manipulation activities. As the crypto regulation domain continues to develop moving forward, this normative moral responsibility on the part of crypto industry players would more likely than not be crystalized in the form of concrete legal obligations not unlike those which are currently applicable to industry players in the conventional financial investment markets, albeit perhaps wider in scope and greater in scale.
The Rough and Tumble of the Crypto Wild West
The triple evils of thefts, scams and market manipulation have given the crypto market a bad name so much so that the domain has been referred to as the “Wild West.” In many ways, the need for crypto investor protection is at its peak as data presented by global blockchain analytics platform, Chainalysis in its “The 2022 Crypto Crime Report’’ (‘’Report”) published in February 2022 showed that the value of crypto-related illicit transactions in 2021 stood at USD14 billion which is a year-on-year (YoY) increase of 79%. Leading the way are crypto scams which resulted in losses amounting to USD7.8 billion over the course of 2021 whereby this is a 82% YoY increase. Next in line is digital larceny in the form of crypto theft which caused losses amounting to about USD3.2 billion which is a worrying 516% YoY increase whereby about USD2.2 billion i.e. 72% of the total amount of crypto theft losses in 202 was attributed to decentralized finance (DeFi) protocols. As for market manipulation activities, the Report noted that the use of fast but insecure price oracles by certain DeFi platforms resulted in the arising of points of failure which enabled market manipulators to target these platforms using flash loan attacks that resulted in losses amounting to USD364 million in 2021.
Although the amount of losses arising from crypto market manipulation activities is comparatively less than those due to crypto thefts and scams, a group of 17 crypto industry players comprising Anchorage Digital, BitMEX, Bitstamp, Circle, Coinbase and CrossTower among others have come together in February 2022 to form the Crypto Market Integrity Coalition (CMIC) with the aim of establishing and preserving “fair and orderly digital asset markets which are appropriately defended against manipulation and abuse such that public confidence and investor protection within those markets is maintained.” Members of the CMIC are required to be signatories to the Coalition’s “Public and Unequivocal Pledge” in which they undertook to constantly review and monitor activities in the crypto market to detect and eliminate market manipulation and unfair market abuses. With the market manipulation activities of crypto whales bearing at least bearing partial culpability for the periodical excessive volatility of the crypto market, the establishment of the CMIC is the pioneering step of an industry-wide initiative towards countering such activities on the part of crypto whales and other market manipulators in the crypto market.
Tokoverse, a Safe Zone in the Crypto Wild West
Given the fact that Toko Token (TKO) is the unifying thread which weaves through Tokocrypto’s crypto-based ecosystem, Tokoverse, every holder of TKO and every user of Tokoverse is effectively an investor in Tokocrypto. In this regard, we take every deposit of investment in Tokocrypto as a deposit of trust which is our ultimate currency because we understand that trust is precious as it takes a long time to build, an instant to break and possibly forever to repair. Accordingly, we have adopted a no-holds-barred approach in the development blueprint of Tokoverse to ensure that it functions as a crypto safe zone. Here are 3 features of Tokoverse which provides 3 reasons why the ecosystem offers the gold standard for crypto investor protection:-
Feature #1 — Minimizing the Risks of Crypto Thefts with Systemic Security
When it comes to security, Tokocrypto leaves nothing to chance whereby the integrity of our networks are warranted through the conducting of annual independent audits by blockchain security form Certik whereas our ISO 27017 cloud management system, which is a first for a crypto exchange in Indonesia, offers utmost protection for the crypto holdings of our users. Add in our business continuity plan (BCP) which provides for the possible contingencies in the highly unlikely event that Tokocrypto’s operational systems are affected by a critical issue and we have a foolproof anti-theft security and backup framework which minimizes the risks exposure of Tokoverse’s users to crypto thefts.
Feature #2 — Combating Crypto Scams with Crypto Education
As part of Tokocrypto’s continuous efforts to combat crypto scams, we have adopted a scholastic approach through our TokoScholars program that aims to educate the community as well as university students and the general public about cryptocurrencies in order to empower them through learning programs which curriculum, content, syllabus and assessment matrices are structured to cater to crypto communities, university students and the general public. In this regard,Tokoverse users who are equipped with the necessary crypto knowledge and the requisite skill sets would be able to identify the red flags of the warning signs of crypto scams thereby rendering them to be less susceptible to falling victim to such scams.
Feature #3 — Outsmarting Crypto Market Manipulators with Artificial Intelligence (AI)
In order to protect Tokoverse users from the effects of the unscrupulous activities undertaken by crypto market manipulators, Tokocrypto Insights provides Tokoverse users with the most optimal signal and trading thresholds using KepingAI’s Signal Long Short Time-Series Forecasting (LSTF) architecture which employs multi-layer state-of-the-art deep learning models to analyze the best price and directional predictions. In this manner, Tokoverse users can harness the computing power of AI to be one step ahead of crypto market manipulators thereby countering the effects of the unscrupulous activities of these crypto bad hats.
In line with the democratization ideals of cryptocurrency which entails the decentralization of control from a centralized entity to the masses, the onus lies on crypto industry players themselves to seize the mantle to safeguard the interests of crypto investors who in turn should seize on every available opportunity to empower themselves using the educational opportunities and technological facilities made available by the industry players. As an industry leader of the crypto market, Tokocrypto is naturally leading the way by providing Tokoverse users with the gold standard for crypto investor protection.
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