You are an expert in crypto currencies in the central bank and you have written a report on the collapse of crypto currencies trust as below. You have to summarize in a  presentation of 6 slides without the cover page. Your task is to write (1) the title; (2) bullet points; sub-bullet point under each bullet point. The report is as below: The Collapse of Crypto Currency Trust
Introduction
In the past years, Cryptocurrencies have developed into trillion-dollar technologies that have attracted many investors into investing in them, with the most dominant being Bitcoins. The emergence and development of the cryptocurrency world can disrupt global financial systems (Hern & Milmo, 2022). Cryptocurrencies are a virtual type of currency that is characterized by a security system called cryptography and is an independent entity free from the central bank. Moreover, cryptocurrencies are decentralized; this is to say that they are not controlled by a financial institution or the government (Mukhopadhyay et.al., 2016). The processing and verification of transactions in this system are done through a blockchain which is a distributed ledger technology. A primary beneficial aspect that can be drawn from cryptocurrencies is their decentralization. This ensures that there are no intermediaries that would otherwise slow down the process or make it more expensive (Lee et.al., 2017). Even with the exhibited benefits come risks in the trading of cryptocurrencies. They feature vulnerabilities like fraud and hacking as their digital nature creates loopholes for cybercriminals to satisfy their wants. Additionally, they can be used as a basis for terrorism funding and money laundering as they are not regulated. 
Cryptocurrency is considered a safe way to secure and transfer money without the need for the central bank or any other intermediaries. However, public trust in cryptocurrencies has declined due to the various issues that arise in the crypto world, which have affected the trading of cryptocurrencies (Gaur, 2022). Therefore, this report discusses how cryptocurrencies contribute to risk and return, the factors that have led to mistrust of cryptocurrencies by the public, and their impact on the crypto industry.

The Balance of Risk and Return
The balance between risk and return is the characteristic factor in the trading of cryptocurrencies. Risk and return are the factors that are considered by investors that seek to put their resources into this trade. The high returns featured in cryptocurrencies result from their decentralized nature, the potential for disruption, and innovative technology (Lee et.al., 2017). However, in the high returns is also several risks in investing in cryptocurrencies. Volatility is a key risk that is marked by price fluctuations in short periods that result in either losses or gains for investors. A classic example is the high rise in the value of the bitcoin between 2017 and 2018 followed by a sharp decline in the following months. 
Lack of regulations is another risk that is associated with cryptocurrencies as they are not backed by a physical commodity or government. This makes it susceptible to fraudulent crimes and other illegal activities. Another risk exhibited by cryptocurrencies is that of market acceptance (Schilling & Uhlig, 2019). In this, cryptocurrencies are seen as a new commodity in the market despite the significant popularity it has gained over the years. To balance risks, therefore, investors need to consider all the associated factors before putting their money into this trade. First, there is weighing on the probabilities exhibited by the cryptocurrencies subject to high returns or the risk of losing investments (Lee et.al., 2017). Second, investors must measure the security attached to the cryptocurrencies in which they intend to invest. Finally, they must also consider the market acceptance potential and the risk probability for investing in new untested technology. Through these considerations, therefore, there is a likely heightened trust or collapse in trust for cryptocurrency. 


Factors that Contribute to the Collapse of Trust
The collapse of trust in cryptocurrency was preceded by several major events. The first major event was the creation of cryptocurrency in 2009 marking the beginning of the crypto revolution. In 2014, there was a second major event that was marked by the Mt. Gox hack that resulted in the theft of about 850,000 bitcoins that were valued at $500 million (DeVries, 2016). There was then the rise of altcoins; this is one among the many rising cryptocurrencies that are differentiated yet highly similar to bitcoins. The ICO boom was then experienced in 2017 in which there was a surge in the ICO (initial coin offerings) in which companies raised money in the issuance of new cryptocurrencies. Finally, there was the cryptocurrency crash which was a characteristic contributor to the collapse of trust (Fanusie & Robinson, 2018). This was experienced between 2017 and 2018 with a surge in process and an eventual bubble burst leading to a significant decline in value. 
The Cryptocurrency market has been growing back until 2022 when it faced major drawbacks that made the public lose trust in investing in the crypto since they felt their savings were unsafe. One of the major reasons that has led to the mistrust is the rise of scams and fraudulent activities that have dominated the cryptocurrency market. For instance, in 2021, investors made major losses of up to $680 million in crypto investments (Ray, 2022). One of the most prevalent fraudulent activities is Bitconnect fraud, where scammers use the money generated by investors to give others as a loan while promising high returns on the investment, which makes them invest more in their savings (Ray, 2022). Technically, Bitconnect was a site that scammers used to lure investors into loaning their cryptocurrency to organizations or individuals expecting huge returns. It is expected that the returns were to be generated by a trading bot, which uses the global cryptocurrency exchange volatility to make profits (Gaur, 2022). However, the platform turned out to be a Ponzi scheme where investors were promised extremely high returns, not knowing the money they were being paid from new investors who fell into the scheme. These scams make the public feel unsafe investing in cryptocurrencies as investors lose billions of dollars. The following graph shows how cryptocurrencies boomed before their downfall in 2022:
Figure 1: Total Market Value of Cryptocurrencies 
 Source: (Siripurapu & Berman, 2023)
The lack of financial report disclosure to the public by trading platforms such as FTX has resulted in the collapse of cryptocurrency trust within the public. Investors feel safe when they have full information about their investments and the expected returns. It makes it easier for investors to make decisions on whether to invest in a firm or not. However, FTX should have disclosed vital information, which led to its downfall and lack of trust from investors. FTX is a digital platform that investors use to buy and sell cryptocurrencies, which provides them with a digital wallet where they can store their funds in their accounts directly (Hetler,2023). It also allows consumers to store their cryptocurrencies by creating a crypto wallet using software or hardware (Hetler,2023). Although the platform has been performing well, the FTX downfall started in 2022 when it was involved in the accounting scandal with its sister company, Alameda Research, which depends heavily on FTX for its digital token (Hern & Milmo, 2022). Alameda's capital borrowing mostly came from FTX, which was later realized that the funding came from consumer deposits and money was borrowed frequently from consumer assets. Also, according to the accounting standards procedures, the two companies failed to produce their financial reports to investors, especially the balance sheet (Hern & Milmo, 2022). Additionally, no audits were conducted on FTX’s financial reports as it is a private organization. Therefore, with audits, it becomes easier to identify customer asse or cash flow records that show the firm's ability to cover the assets or liabilities of its consumers. 
Further, following FTX's collapse, consumers were not allowed to withdraw as the company limited that option by removing the feature online. Therefore, most clients needed access to their savings, and when the company could not pay them, it filed for bankruptcy. Overall, the company collapsed due to the huge amounts of withdrawals used in the capital funding for Alameda. A mismanagement of funds and lack of liquidity also resulted in its collapse (Hetler,2023). Therefore, with these incidents, the public loses trust and interest in cryptocurrency trading. Investors also tend to lose trust in the company and will not channel more investments to the platform. Other frauds involved in the crypto world involve exit frauds, where companies that establish the selling and buying of cryptocurrencies disappear with investors' money. Also, another fraud arises when investors increase cryptocurrency prices and then sell them at a profit while leaving other investors to incur losses. The fraud conducted by cryptocurrency organizations and investors has led to huge financial losses and a decline in public trust in the trade. Most individuals have resorted to avoiding investing in cryptocurrencies, seeing them as risky and unreliable. With the lack of trust from the public, the cryptocurrency industry has also been affected since they are no new investors tapping into the market, which has resulted in a decline in growth.