Crypto investment is maturing and despite being seen as risky investment, there is now a solution that minimises your risks – Escroco.
In economics and decision theory, the term ‘loss aversion’ refers to the tendency of consumers to prefer avoiding losses to acquiring equivalent gains. Some studies have shown that the psychological impact of losses is twice as powerful compared to equivalent gains.
It therefore implies that someone who loses $1 will lose more satisfaction than another person will gain satisfaction from a $1 pay-out. At the same time, behavioural economics suggests that investors are generally risk averse and that when faced with a choice between two investments that have the same expected return, they will choose the one with the lower risk profile.
While the above might be true, what happens if the investment scheme one decided to invest in fails to achieve the expected return not because of changes in economic conditions but because the scheme was fraudulent or a Ponzi scheme? There have been numerous cases over the years where regulators, alongside police investigators have uncovered long running schemes in seemingly legitimate financial operations.
One of the most prolific schemes in recent years was the Madoff investment scandal. Often there is very little that regulators can do to help those affected and the end result is that the investor is left with nothing.
In comparison to the general investment markets, crypto-markets are still considered to be in the early stages of development, but there is nothing to stop scammers and fraudsters to try and capitalise on budding investors. Here too there have been numerous examples of people entrusting other companies with a substantial sums of money only to discover that their investment has somehow vanished into thin air.
The fact that crypto-markets are even less regulated does not help the disenchanted investor who has no one to turn to. The lack of regulation has led to the reputation that crypto-markets are riskier than other assets and that less safety nets are available should things go wrong. But what if there was a solution?
The team behind Escroco has filled the gap in the marketplace by creating an escrow and insurance service that aims to connect investors with borrowers, all with the aim of lowering risk and maximising profit. The platform allows the borrower to create investment packages and verify this investment before presenting it to the investors. On the other side, investors are presented with verified investment packages and the terms associated with these packages.
Another innovative aspect is the insurance scheme which is at the very heart of the project. The scheme covers for the loss of an investor in the case of borrowers exiting from the market, regardless whether it is because of an unsuccessful venture which resulted in bankruptcy or because it was suspected to be involved in illicit activities. While this loss prevention scheme does minimise the risk of outright loss, not all cases of loss result in 100% reimbursement, as this is based on investment ratings.
The Escroco (ESC) token was created using the Wave Blockchain technology, designed in the way that benefits investors and borrowers alike. Now, the team is announcing a cash airdrop named Escroco Cash Airdrop (ESA), where the new token will be worth $1 which the holders will get for free at the ratio of 4:1 (4 ESC get 1 ESA). Only those who keep their coin on a waveswallet.io will be able to get the new coin and the date of the airdrop is to be between 15 Feb -25 Feb.
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