University of North Carolina Charlotte Researcher Illuminates Research in Risk Management (Cryptocurrency Risks, Fraud Cases, and Financial Performance): Insurance – Risk Management

NewsRx Policy and Law Daily

2023 MAR 10 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- New study results on risk management have been published. According to news reporting out of Charlotte, North Carolina, by NewsRx editors, research stated, “In this study, we examine major cryptocurrencies, present notable fraud cases, describe fraud risks, and analyze cryptocurrency financial performance.”

The news reporters obtained a quote from the research from University of North Carolina Charlotte: “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.”

According to the news editors, the research concluded: “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.”

For more information on this research see: Cryptocurrency Risks, Fraud Cases, and Financial Performance. Risks, 2023,11(3). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks11030051.

Our news journalists report that more information may be obtained by contacting David S. Kerr, Turner School of Accountancy, Belk College of Business, University of North Carolina Charlotte, Charlotte, NC 28262, United States. Additional authors for this research include Karen A. Loveland, Katherine Taken Smith, Lawrence Murphy Smith.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the authors of this research: Karen A. Loveland (http://orcid.org/0000-0002-1460-7052), Katherine Taken Smith (http://orcid.org/0000-0001-5954-5935).