ChainCatcher reports, according to Jinshi data, recently, some illegal institutions have been using the "stablecoin" concept to promise high returns through issuing or hyping so-called "virtual currencies," "digital assets," and "stablecoin investment projects," inducing the public to invest funds and participate in trading speculation, which appears to be conducting illegal financial activities.
In fact, such activities have significant characteristics of illegal fundraising, with their operational model often relying on attracting new investors' funds to maintain operations or pay returns to early investors. Once the capital chain breaks or the project party runs away, investors will face enormous risks of being unable to recover their principal.
In response, financial regulatory authorities in multiple regions have issued risk warnings, reminding the public to avoid being deceived.
