Crypto is the dream of technology geeks, social innovators, and decentralization idealists, but it is also undeniable that it is a haven for gray and black industries. Recently, I have seen many friends in the circle getting their cards frozen. Here are three points about the black market, black stablecoins, and black KYC to help us better protect ourselves:
1 - The black industry still occupies a large part of Crypto. According to Reuters, it is conservatively estimated that last year there were $20 billion in cryptocurrency transactions related to illegal activities (the total circulation of USDT is only $76 billion). This includes transactions in the black market for people and drugs, terrorist fundraising, transactions with sanctioned individuals, fraud, and hacker attacks.
2 - Discount stablecoins are all scams. Stablecoins purchased at a price 5% below market value fall into two categories: black stablecoins and fake stablecoins. Black stablecoins are dirty money marked by Tether or subject to government regulation, used to let investors buy at low prices for cashing out or money laundering, leading to frozen accounts when detected. Fake stablecoins release their own tokens, using special symbols to resemble USDT but are not actually USDT, essentially worthless coins. Some won't even give you worthless coins, they will test with a small amount to lure you in and then disappear with the funds.
3 - Do not trust KYC, do not sell your identity. Selling one's identity is actually quite common in the crypto world. From buying a full set of KYC verification for opening a bank account in underdeveloped countries for $8, to paying $500 a month for a white person's face project, to helping friends withdraw funds on exchanges. These are all very risky activities.