The ambiguity surrounding cryptocurrencies and the manipulation of investors.

In recent years, the cryptocurrency craze has attracted many Vietnamese investors to participate in blockchain projects with the expectation of high profits. However, many projects have collapsed, and the value of tokens (cryptocurrency assets) has evaporated, leaving many investors penniless.

A major blockchain event attracted a large number of young people - Photo: GM

Among them, the AntEx token of businessman Nguyen Hoa Binh (Shark Binh) once plummeted by 99% of its value, and investors accused it of "massive withdrawal" and "pump and dump" schemes. In addition, a series of fraudulent cryptocurrency projects have been dismantled by the police recently, such as PaynetCoin, Matrix Chain, Wingstep, and Game Naga Kingdom...

This reality raises questions about transparency, mechanisms for protecting participants, and the legal liability of digital asset issuers in the context of increasingly popular new investment forms.

Are 99% of crypto projects scams?

Speaking to Tuổi Trẻ newspaper , the director of a venture capital fund in Vietnam said that he had been invited to invest in and provide personal mentorship for the AntEx project but declined because it did not meet his criteria. "Many people say AntEx is a 'junk coin' or 'meme coin,' but in reality, this project has a well-structured team and marketing strategy. Therefore, many investors trusted and invested based on the reputation of the founding team," he said.

However, after the token was listed on the exchange, its value dropped by more than 90%, leaving many investors penniless. "It's an old story, but it's being brought up again because it involves big names. From the beginning, I didn't believe in the direction that project was heading," this person said, while also advising against investing based on the name of any celebrity to avoid the risk of losing everything.

Ms. Ha Vo Bich Van, a financial advisor at Hub Dong Hanh, a subsidiary of FIDT Investment Consulting and Asset Management Joint Stock Company, believes that the statement "99% of crypto projects fail, result in losses, or are scams" may sound extreme, but it's not entirely wrong when considering the harsh reality of the digital asset market.

According to Ms. Van, in the crypto, DeFi, and newly issued token sectors, the failure and fraud rates are much higher than in traditional investment industries. "This is not unreasonable considering the numerous small, opaque projects, anonymous development teams, or those operating on a 'pump and dump' model. The majority of these collapse after the initial euphoria," Ms. Van said.

However, Ms. Van also noted that the entire crypto market should not be equated with fraud. "Besides failed projects, there are still many successful and sustainably developing projects like Bitcoin, Ethereum, or large DeFi platforms. Therefore, it cannot be said that every project is 'completely lost'," Ms. Van shared.

According to Ms. Van, one of the biggest risks today is the lack of a centralized insurance mechanism or compensation fund when a project is hacked, "drafted," or disappears. Only a few large platforms have internal insurance funds to compensate for losses if the platform is attacked, while the majority of small projects have absolutely no mechanism to protect investors.

"Investors can sue if the development team's identity and traceable assets are clearly identifiable. But in reality, the majority of development teams are anonymous and operate across borders, making legal enforcement almost impossible," Ms. Van emphasized.

Exploiting crypto to "lure" investors.

According to experts, blockchain technology is borderless, which helps Vietnamese startups access global funding more easily than traditional models.

In fact, in Vietnam, many businesses have successfully raised millions, even tens of millions of dollars in the blockchain space, such as Kyber Swap ($52 million), Ninety Eight ($6 million), etc.

As a result, these businesses have developed into leading crypto services worldwide , serving millions of users globally. However, because this market is new, it lacks a clear legal framework, especially in fundraising activities, leading to a situation where many individuals and organizations exploit crypto for personal gain, raising virtual capital without fulfilling their initial commitments.

Mr. Tran Xuan Tien, General Secretary of the Ho Chi Minh City Blockchain Association, believes that to mitigate the aforementioned risks, the market has improved its fundraising methods over time through new forms such as ICO (Initial Coin Offering), IDO (Decentralized Depositary Entries), and IEO (Investor Exchange Underwriting, Listing and Liquidity Support).

"However, even IEOs have limitations. If a project fails to deliver, the exchange only delists it, and the ultimate loss still falls on the investors," Mr. Tien said, adding that to mitigate risks and maintain market transparency, each party involved in the fundraising process needs to take responsibility.
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Specifically, the project owner is the initiator and bears ultimate responsibility for information transparency, the purpose of capital use, and commitment to adhering to the planned schedule. If there is any fraud or misappropriation of funds, the project owner will be held directly legally responsible.

The project team, who are involved in management and implementation, must be responsible for ensuring that the capital is used according to the published plan and not abets fraud or price manipulation. "If there are any violations, the responsibility rests not only with the founder but also with all related members," Mr. Tien said.

Meanwhile, according to experts, crowdfunding platforms (IDO/IEO/Launchpad, exchanges) must act as "gatekeepers," carefully screening projects, verifying information, and monitoring the use of funds.

"When violations occur, the platform cannot simply 'delist' to evade responsibility; it needs a mechanism for compensation, legal support, or at least transparency to protect investors," one expert advised.

Be vigilant against scams.

When asked about how she evaluates a potential crypto project for investment, Jenny Nguyen, COO of Kyros Ventures, mentioned her three "unwavering" criteria before investing: people (team), product, and timing.

"You need to know exactly who's behind it. If the team is anonymous, I'll reject it immediately. Does the project truly solve a problem the market needs to address, or is it just a beautiful story? You need to see the real value," Jenny Nguyen emphasized.

According to Jenny Nguyen, even the same idea can fail if it's at the wrong time. "Investing in crypto is like riding a roller coaster; you can triple or quadruple your investment overnight, but you can also lose everything the next morning. The important thing is to understand what you're investing in, what you're doing, and who you trust," Jenny Nguyen said.

Meanwhile, Mr. Tran Xuan Tien argued that investors need to have a proper understanding of their financial decisions. Essentially, the cryptocurrency market is still a financial market, requiring participants to possess both investment knowledge and a basic understanding of blockchain technology.

"It's crucial that each decision is linked to personal responsibility, rather than chasing promises of 'guaranteed profits,' which are typical signs of fraud," Mr. Tien advised, adding that when investing as an individual, one needs to invest time and effort in research.

"If you lack sufficient resources, you can consider entrusting your funds to reputable funds. However, if you choose to follow others' advice, you must also be prepared to accept that all risks and losses are ultimately due to your own decisions," Mr. Tien suggested.

Ms. Ha Vo Bich Van also advised investors to exercise caution before participating, carefully evaluating each project through its development team, token structure, auditability, transparency, and timeline. "Don't 'put all your eggs in one basket,' and closely monitor the project's operations to promptly address any unusual signs," Ms. Van cautioned.

According to Ms. Van, investors should prioritize projects that are transparent, have real users, reasonable capitalization, and do not promise unrealistic returns. "In the future, when projects operate within the Vietnamese legal framework, investors should demand clear contracts, professional legal advice, and financial advisors to ensure their rights are protected," Ms. Van said.

Difficult to trace on blockchain.

According to experts in the cryptocurrency field, tracing and verifying the identity of cryptocurrency wallet owners is relatively difficult without direct cooperation from international exchanges.

On-chain analytics (trading on the blockchain) can only identify wallet addresses – that is, a string of digital characters – but cannot determine the identity of the person behind them. "Some parties might speculate that the wallet address 'belongs to someone,' but all of that is just speculation, with no verifiable value," said Jenny Nguyen.

Mr. Tran Xuan Tien also acknowledged that verifying the identity of fraudsters in the blockchain space is not simple. The ability to trace them depends on many factors: the transaction method, the use of anonymity tools such as "money mixers," and the scale of the money involved.

"Although many transactions can be traced by investigators, there is still a possibility that the person directly responsible for the fraud will not be identified. Therefore, a legal framework needs to be established to compel platforms and projects to be more transparent from the outset," Mr. Tien suggested.

With the pilot resolution on cryptocurrency assets coming into effect, experts believe that a clearer legal framework will facilitate transactions on exchanges licensed by state regulators, enhancing transparency and protecting the rights of domestic investors.

Waiting for a legal framework for digital assets.

According to experts, due to the lack of a specific legal framework, the majority of cryptocurrency transactions in recent times have been conducted through international exchanges, outside the purview of domestic authorities.

However, Vietnam has made significant progress in building a legal framework for digital assets. The Law on Digital Technology Industry, effective from January 1, 2026, for the first time recognizes digital assets, including cryptographic assets, and clearly defines ownership, transfer, and protection of the rights of owners.

In addition, Government Resolution 05/2025 on piloting the management of the cryptocurrency trading market for 5 years has been issued, setting out principles for token issuance, requiring projects to have real underlying assets, as well as regulations on licensing conditions for exchanges, minimum capital, risk management mechanisms, and information transparency.

Thus, investors will have a legal basis to protect their rights in case of disputes; projects and exchanges must operate more transparently, be subject to audits, and disclose information periodically. Strict monitoring mechanisms will also help minimize the risk of fraud, and "underground" transactions will be brought under management, contributing to limiting fraud and asset losses.

"Only when institutions are clear can investors truly be protected and the market can develop healthily," Ms. Van affirmed.

What does "pump and drain" or "remove carpet" mean?

Many small crypto projects lack transparency, have anonymous development teams, or operate on a "pump and dump" model - Illustration by AI

Following the Antex case, many in the industry mentioned the term "pump and dump"—a common form of price manipulation in the cryptocurrency market. This method is carried out by a group of investors or an organized group.

Jenny Nguyen stated that the aforementioned tactic is very common, especially with "junk coins" or "meme coins," accounting for over 90% of transactions. A common method is during a "pump," where a group secretly buys a large quantity of digital assets (tokens) at a low price.

After accumulating sufficient tokens, this group simultaneously launched a massive promotional campaign, spreading false or exaggerated positive news on social media and in the press to trigger a fear of missing out (FOMO) among investors. This created a buying frenzy, driving the token price up dramatically in a short period.

When the price reaches the target level, the manipulative group will simultaneously sell off all the tokens they previously purchased, reaping huge profits. As a result, the token price plummets, leaving individual investors who bought at the high price as victims, with their assets losing almost all their value.

Meanwhile, "rug pull" is a more serious form of scam, often occurring during the boom of new projects. Project leaders will exploit the market's popularity to encourage users to buy tokens.
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After attracting a significant amount of capital, the operators will secretly sell off all the assets in the liquidity pool, withdraw all the money, and disappear. As a result, the token's value plummets to zero, leaving investors with nothing.

The global cryptocurrency market has seen numerous cases of investors suffering heavy losses due to both sophisticated manipulation and scams. "But many investors, even knowing that there will be 'pulls and dumps,' still want to jump in hoping to find a quick way to change positions and get rich fast. This reality needs to be warned against," said Jenny Nguyen.

BINH KHANH - DUC THIEN

Source: https://tuoitre.vn/map-mo-tien-ao-lua-ga-nha-dau-tu-20251009231513706.htm