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Reader question: Is it safe to hit the ‘unsubscribe’ button on spam?

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I received email from a reader asking if hitting the “unsubscribe” button in her inbox is smart. Like many things in tech, it depends. In some cases, reacting to spammers might make your email a hot commodity, leading to more unwanted emails or even a spot on a “for sale” list.

Here’s the lowdown on how to stop getting emails you don’t want — without opening yourself up to more junk.

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It could go one of two ways

With reputable companies, clicking unsubscribe should do the trick. If you’re receiving newsletters or promotional emails from brands you know, they generally follow email marketing regulations.

GENIUS TECH LIFE HACKS NO ONE TELLS YOU — UNTIL NOW

For unsolicited spam from unknown senders? Clicking unsubscribe may indeed make things worse. You inadvertently confirm that your email address is active … possibly leading to even more spam.

‘How do I know what to pick, Kim?’

typing on laptop keyboard

Stick to familiar ground: If the email is from a trusted source (think brands you’ve shopped with or newsletters you’ve signed up for), go ahead and hit that unsubscribe button.

Dodge the unknown: If it’s a random email about a long-lost prince or a miracle cure, steer clear of the unsubscribe link. Mark the email as spam in your email client.

For Outlook:

  • Select the messages you want to report as junk.
  • From the top toolbar, select Report Report Junk.

For Apple Mail

  • On your iPhone or iPad, swipe left on the message, tap More, then Move to Junk.

For Gmail:

  • On your computer, open Gmail.
  • Select one or more emails.
  • Click Report spam.

Use spam filters

WHAT HAPPENS TO YOUR PERSONAL INFO AFTER A DATA BREACH

For Outlook on Windows 10:

  • At the top of the page, select Settings.
  • Select Mail > Junk email.
  • If you want to block an email address, enter the email address under Blocked senders and select Add. To block all emails from a domain, enter the domain name under Blocked Domains and select Add.
  • Select Save.

For Gmail:

To set up a filter using a spam email that you’ve received:

  • Open Gmail.
  • Check the checkbox next to the email you want.
  • Click More.
  • Click Filter messages like these.
  • Enter your filter criteria.
  • Click Create filter.

Consider third-party tools

Sometimes, you need to bring in the big guns, especially if it’s an inbox you’ve had for years and years … and have shared with everyone under the sun.

  • Unroll.Me: Handy for identifying and unsubscribing from multiple newsletters at once. This service is free to use.
  • Clean Email: This organizer that sorts emails and aids in unsubscribing. Plans start at $9.99 per month.
  • MailWasher: Preview and eliminate unwanted emails even before they reach your inbox. There is a free MailWasher plan, but if you want to upgrade to Pro, it’s $49.95 annually.

Balancing caution and convenience are the key to banishing email clutter. You’re already on your way to a cleaner inbox!

Gmail on a laptop

Keep your tech-know going 

My popular podcast is called “Kim Komando Today.” It’s a solid 30 minutes of tech news, tips, and callers with tech questions like you from all over the country. Search for it wherever you get your podcasts. For your convenience, hit the link below for a recent episode.

PODCAST PICK: 

NFL goes AI, e-bike for preschoolers & get $15 from Amazon

Plus, always forget your laptop charger? Here’s how to make your laptop battery last longer. Now’s the time to stop leaving voicemails — we’ve got the lowdown on new phone etiquette rules. TikTok slang for parents and how to turn an okay resume into a great one.

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Check out my podcast “Kim Komando Today” on Apple, Google Podcasts, Spotify, or your favorite podcast player.

Sound like a tech pro, even if you’re not! Award-winning popular host Kim Komando is your secret weapon. Listen on 425+ radio stations or get the podcast. And join over 600,000 people who get her free 5-minute daily email newsletter.

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Balance of transparency and control

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As the digital landscape evolves, decentralized governance has become an important notion to foster a fair and inclusive ecosystem. In the trend toward transparency and collaborative decision-making, analyzing companies’ roles and responsibilities in this new paradigm is critical as we navigate the exciting realm of decentralized governance in search of the ideal balance of transparency and control.

The balance problem

The conventional system of centralized control is called into question by decentralized governance. The goal is to equally share power and decision-making authority among participants while encouraging transparency and inclusiveness. However, striking a balance becomes critical when considering corporations’ roles in this shifting environment.

Organizational roles

Organizations play an important role in decentralized governance by serving as collaborative leaders and catalysts. They create spaces for people to share their expertise, collaborate and build communities. Organizations believe in empowering individuals and contributing to the ecosystem’s growth via their efforts.

Guardian responsibilities — wait, what?

Great power comes with great responsibility. Organizations must recognize their position as promoters of fairness and integrity. Everyone is responsible for prioritizing and promoting the greater good of the community while protecting against abuse. Organizations may foster trust and an environment where everyone has an equal voice by emphasizing transparency and responsibility.

How to embrace the Web3 spirit

Decentralized responsibility demands avoiding the flaws of centralized systems by learning from the past. It pushes inclusiveness and fairness while avoiding the power imbalances that plagued Web 2. Organizations must actively engage with the community to build a collaborative and shared decision-making culture with the following:

  • Embracing transparency and trust: Web3 promotes a transparent and trust-based strategy in which organizations prioritize openness in their operations, decision-making processes and data handling. Web3 fosters trust among users by increasing transparency, ensuring that their data is appropriately managed and allowing them to participate in a more informed and accountable digital world.
  • Fostering a participatory ecosystem: Web3 thrives on active community interaction, encouraging companies to involve users, developers and stakeholders in establishing the direction of their projects. Organizations can create a participatory environment that empowers the community, promotes creativity and ensures inclusivity by actively soliciting feedback, organizing open talks and embracing decentralized governance approaches.
  • User-centric design is prioritized: Web3 emphasizes putting users at the center of design and development processes. Organizations can design applications and platforms that adapt to individuals’ requirements and preferences by prioritizing user experience, accessibility and privacy. This user-centric approach promotes loyalty, engagement and optimism, ensuring that the benefits of Web3 technology are seamless, accessible and appealing to everybody.
  • Redefining business ethos: In the Web3 era, businesses must go beyond profit and embrace a broader ethos. Fostering social impact, sustainability and integrity are all part of this. Organizations are encouraged to prioritize social responsibility, environmental sustainability and equitable wealth distribution, matching their actions with the values of the community they serve.
  • Creating a vibrant and informative environment: Web3 governance does not have to be taken lightly. It thrives on the enthusiasm and innovative thinking of its contributors. Organizations may encourage a sense of excitement by creating an environment that coordinates essential issues with humor.

Towards a bright future

Decentralized governance’s future depends upon striking an appropriate balance between transparency and control. By actively embracing the community, organizations can develop an ecosystem that is not just educational and powerful but also fun and inclusive. We can collaborate to create a world wherein good vibes, knowledge exchange, fair, transparent, balanced and effective governance coexist.

Conclusion

Does Web3 need the foundation that Web2 gave us? The solution reveals an essential relationship between the past and the future by demonstrating a developed symphony of innovation and continuity. Web2 helped establish a foundation for the emergence of Web3, an environment where decentralization and user empowerment take center stage because of its dynamic user-generated content, integration and limitless innovation. While Web3 marks the beginning of a new era, it does continue to stand on the strong shoulders of Web2. It relies on its technologies, infrastructure and services to pave the way for a more decentralized, secure and immersive digital experience. 

Finally, as we move forward on emerging technologies such as AI and decentralization, let us remember to remain optimistic and seize the opportunities that lie ahead of us. Let’s come together, exchange ideas and harness technology for the greater good. By working collectively, we can create positive change and contribute to a more transparent, seamsless, ethical, inclusive and sustainable future.

Pioneering Blockchain Solutions as CEO of Block Tides | Forbes Business Council Member | CoinMarketCap Key Opinion Leader

This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.



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Michigan State’s Tom Izzo draws sharp contrast between coaches and players leaving schools

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The advent of name, image and likeness in college athletics, as well as the transfer portal, has turned basketball and football on its heads, but not everybody is for it.

Michigan State men’s basketball coach Tom Izzo, who has expressed support for student-athletes who want to make money playing their sport in college, drew a sharp contrast between why coaches leave their posts and players deciding to transfer because they are unhappy.

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Michigan State head coach Tom Izzo speaks during Big Ten NCAA college basketball Media Days Tuesday, Oct. 10, 2023, in Minneapolis. (AP Photo/Bruce Kluckhohn)

“Yeah, I have flexibility, I can leave,” Izzo said at Big Ten Media Day, via ESPN. “I have millions of dollars of a buyout if I leave. I’ve paid 40 years of dues to leave. Most coaches have put in their time. Most coaches will be doing that at 35 and 40 and 50, not at 20 when one guy tells you to leave because you’re unhappy.”

Izzo said he has been “unhappy” for most of his life but never thought of leaving Michigan State because of it. He has been the head coach of the Spartans since the 1995-96 season. He led the team to the NCAA Tournament in 1998, and the Spartans won the championship in 2000.

“You know what, what’s wrong with being unhappy? I’m unhappy most of my life,” Izzo added. “Unhappy drives you. Unhappy pushes you. Unhappy makes people realize, ‘You know what? I’m not good enough. I’ve got to get better.'”

Tom Izzo watches the Spartans

Michigan State Spartans basketball head coach Tom Izzo looks on from the sidelines of Kinnick Stadium before the game between the Iowa Hawkeyes and the Michigan State Spartans in Iowa City, Iowa. (Jeffrey Becker-USA TODAY Sports)

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Izzo made clear he was not a fan of the NCAA shortening the notification-of-transfer window from 60 days to 45 days. The window opens after Selection Sunday.

The coach said he thought 30 days would have been enough and feared the “unintended consequences” of student-athletes transferring, including the potential drop of graduation rates.

“This transfer portal is not going to be the best thing for the kids. You get 45 days. If you think a kid is leaving, are you going to go out and get somebody else? Because you can’t wait forever. Now it’s affecting the kids you’ve got there,” Izzo said.

Tom Izzo argues a call

Michigan State head coach Tom Izzo reacts to a call against Marquette in the second half of a second-round men’s college basketball game in the NCAA Tournament Sunday, March 19, 2023, in Columbus, Ohio. (AP Photo/Paul Sancya)

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Michigan State was 21-13 overall last season. The team lost in the regional semifinal against Kansas State.

Beware of Bing Chat and its AI conversations that can lure you into malware traps

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Every day, AI seems to flip a coin between being our tech hero or digital villain. One day, it’s saving the day, another day, it’s stirring up some trouble. In this mix, Bing Chat made a splash by teaming up with OpenAI, turning the mundane task of searching into a friendly chat. 

With Microsoft leading the way, these tech giants were able to integrate the capabilities of ChatGPT into the Bing search engine. 

This integration was meant to change the search engine game. Now, instead of staring at a blank search bar, like other typical search engines, you’re chatting with what feels like an old buddy. But while many were expecting to experience this new way to search in amazement, some shady stuff started cooking behind the scenes.

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Person holding up their phone logged into ChatGPT.

Many people have incorporated AI into their tech use. ( )

MORE: GOOGLE’S AI IS TRYING TO ONE UP CHAGPT AND BING WITH EVERYDAY AI FEATURES 

Ads injected into AI chat on Bing

In March, like most companies that offer free services, Bing began rolling out ads. It was Microsoft’s way to generate revenue in between your chats. Unfortunately, this move was like setting out a welcome mat for some not-so-welcome guests.

ASK KURT: IS IT MORE SECURE TO USE MY CELLPHONE DATA VS WIFI?

Screenshot of BingChat.

Ads are being incorporated BingChat. (Microsoft)

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Hackers sneak malicious ads into Bing Chat

Here’s where things got dicey. Some crafty scammers whipped up ads that looked like legit links for downloading the “Advanced IP Scanner.” This tool basically helps a person see all the devices hopping around on their network. 

Now, when curious minds turned to Bing Chat for guidance on downloading this tool, instead of being led to the official download site, they were faced with a malicious ad playing dress-up. 

Click on it, and you’ll find yourself on a fake download site, ready to serve up a hefty portion of malware instead of the handy scanner tool you were after. This twisted ad-venture was like a wolf in sheep’s clothing, waiting to pounce the moment you hit “download.” We’ve reached out to Microsoft to understand how this issue is being addressed and have not yet received guidance by the time this story was published.

HOW TO REIN IN YOUR ONLINE EXPOSURE AND REMOVE YOURSELF FROM GOOGLE SEARCHES

Photo of a person using their laptop while holding their phone.

Person finding a malicious ad while using BingChat. ( )

MORE: YOUR SECRETS MAY NOT BE SAFE WITH CHATBOTS LIKE CHATGPT

Fake Advanced IP Scanner is malware in disguise 

The download offered on this site isn’t the authentic and legit Advanced IP Scanner but disguised malware. When downloaded and run, one of the files in the installer connects to an external server to fetch the payload. Although the exact payload hasn’t been identified, it’s a shady setup that often leads to data theft or allows bad actors to sneak into other accounts or networks.

10 EASY WAYS TO PREVENT SOMEONE FROM SPYING ON YOU

Screenshot of cursor hovering over a Security link.

Computer user clicking on a Security link. ( )

MORE: BEST ALTERNATIVES TO CHATGPT

Staying safe

The Bing Chat scam shines a light on the cunning ways scammers are weaving their dark web. So, how to stay safe? 

Be wary: Do not trust ads, especially those offering downloads. Even in a friendly chat setting, keep the guard up. 

Think before you click: Double-check URLs to ensure they lead to official, reputable sites before hitting that download button. 

Have good antivirus software on all your devices: The best way to protect yourself from having your data breached is to install antivirus protection on all your devices. Having good antivirus software on your devices will alert you of any malware in your system that could possibly be downloaded by clicking on the bogus Advanced IP Scanner ad, warn you against clicking on any malicious links in phishing emails and ultimately protect you from being hacked. 

Get my picks for the best 2023 antivirus protection winners for your Windows, Mac, Android & iOS devices.

Use identity theft protection: If you did click malware and think your personal information has been compromised, you may consider using identity theft protection. Identity theft protection companies can monitor personal information like your home title, Social Security number, phone number, and email address and alert you if it is being sold on the dark web or used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals. 

See my tips and best picks on how to protect yourself from identity theft.

Have strong passwords and use 2-factor authentication: Using the same password across multiple platforms will always make you more vulnerable because if one account gets hacked, they all get hacked. And 2-factor authentication is an extra shield preventing hackers from getting into your accounts. Make sure to use a password manager to keep track of all your passwords.

Invest in data removal services: If you want to protect your online privacy and security, you might consider using a removal service that can help you delete your personal data from hundreds of sites and prevent hackers from exploiting your information.

While no service promises to remove all your data from the internet, having a removal service can be effective if you want to constantly monitor and automate the process over a longer period of time.

See my tips and best picks for removing yourself from the internet.

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Kurt’s key takeaways

The Bing Chat escapade leaves us with more than a few breadcrumbs to follow. It’s a peek into how our digital chit-chats can take a left turn into some shady alleys. And while the tech landscape keeps morphing, the cat-and-mouse game between us and the scam artists gets a new playground.

 In this chat-fueled digital age, have you ever clicked on something that took you somewhere you didn’t expect? Or bumped into an online scam that left you second-guessing your click? Or have you ever used an AI-powered chatbot? Let us know by writing us at Cyberguy.com/Contact.

For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter.

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Copyright 2023 CyberGuy.com. All rights reserved.



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Amazon Prime Big Deal Days offers discounts on pet essentials this October

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Amazon’s latest savings event, Prime Big Deal Days, is here and now is the time to take advantage of meaningful savings on all things pets. Find deep discounts on an assortment of highly rated pet products, including offers on pet hair vacuums, air purifiers, and dog beds.

Amazon’s sale event kicks off October 10 at 3 a.m. EDT and runs through October 11. If you’d like to save big on Prime Big Deal Days, then you’ll need to either be an existing Amazon Prime member or you can join or start a 30-day free trial to enjoy hundreds of discounted pet products. Read on for the top pet supplies from Amazon Prime Big Deal Days.

Amazon Prime Big Deal Days pet cleaning sales

BISSELL Little Green Multi-purpose Portable Cleaner $123.59, now $89.00

Bissel Littlegreen

Make cleaning up pet messes a breeze with the BISSELL Little Green Multi-Purpose Portable Carpet and Upholstery Cleaner. The #1 best seller in carpet & upholstery cleaning machines is now selling for $89.00, down from the original price of $123.59. You can feel even better about spending on this essential cleaning tool because you help save pets through the BISSELL Pet Foundation.

Dyson V10 Cyclone Animal Cordless Stick Vacuum $549.99, now $388.90

Dyson Vacuum

The Dyson V10 Cyclone Animal Cordless Stick Vacuum is a top-of-the-line pet vacuum with a de-tangling motorbar cleaner head. So your home can now enjoy deeply cleaned carpets and hard floors. The vacuum’s hair removal vanes help clear long hair and pet hair from the brush bar. Plus, it’s lightweight and converts to a handheld, so you get that pet hair out of your cars, stairs and upholstery. The vacuum is usually listed at $549.99 but is now on sale for $388.90.

Chom Chom Roller Pet Hair Remover and Reusable Lint Roller $31.95, Now $19.99

Chom roller pet lint

Say goodbye to pet hair everywhere. The Chom Chom Roller Pet Hair Remover works for dog and cat hair removal and promises deep cleaning. Plus, it comes in a convenient size to easily carry it wherever you go. It is typically priced at $31.95, but you can try one at the sale price of $19.99.

Amazon Prime Big Deal Days pet health sales

Veken Pet Fountain $33.99, Now $25.99

Veken water

You can help keep your pet healthy with fresh filtered water when you buy the Veken Pet Fountain, 84oz/2.5L Automatic Cat Water Fountain Dog Water Dispenser with 3 Replacement Filters & 1 Silicone Mat for Cats, Dogs, Multiple Pets, Grey. Studies show that pets prefer water from a running source, so the Veken Pet Fountain is perfect for furry friends, especially fussy ones. The fountain’s 2.5L capacity meets the needs of small and medium-sized pets. Also, it is easy to install and clean, making life easier for you and your pet. Its compact design will only take up a little space in your home. Snag one on sale for $25.99.

 Embark Breed & Health Kit – Dog DNA Test $199.00, now $127.00

embark DNA

Want to learn more about what health issues your beloved pet might be susceptible to as it ages? You can now try out Embark’s Breed & Health Kit – Dog DNA Test for a significant discount. Embark’s panel tests 230+ health risks and provides hundreds of actionable insights to help you give your pup the best care possible. After receiving their test results, 37% of dog owners changed how they care for their dogs. You can test your pet’s DNA for the sale price of $127.00, down from the list price of $199.00.

BestPet Pet Stroller Premium 3-in-1 Multifunction Jogger Stroller $89.99, now $39.99

Pet Stroller

Don’t let an ailment keep your pet from enjoying the outdoors. This Pet Jogger Stroller will help you easily transport your pet anywhere you go. The pet stroller is easy to use and store. It also comes with a detachable basket that can be taken off quickly as a travel carrier. It can also be a car seat when sitting in a car. It’s on sale now for $39.99.

Amazon Prime Big Deal Days air purifier sales

Winix 5500-2 Air Purifier $249.99, now $159.99

Winnix Air purifier

Keep the air in your home air free of pollutants, dust mites, pet dander, pollen and other allergens with the Winix 5500-2 Air Purifier with True HEPA, PlasmaWave and Odor Reducing Washable AOC Carbon Filter Medium in Charcoal Gray. This filter has a washable AOC carbon filter made from activated carbon granulars to remove household odors, allergens, chemical vapors and other pollutants. It is suitable for medium and large rooms, kids’ bedrooms, family rooms and kitchens. On sale now for $159.99 from $249.99.

Dyson Purifier $749.99, now $499.99

Dyson Vaccum

Dyson’s highly rated purifier, the Dyson Purifier Cool Formaldehyde™ TP09 Air Purifier and Fan – White/Gold Large, is on sale now for $499.99 from the original list price of $749.99. The purifier captures 99.97% of particles 0.3 microns in size. An additional filter removes odors and gases. It automatically senses and reacts to changes in air quality and then reports pollution in real time on an LCD screen and the MyDyson app.

Amazon Prime Big Deal Days pet bed sales

K&H Pet Products Pillow-Top Orthopedic Lounger Sofa Dog Bed $90.99, now $59.43

KH Pet bed

Your pet won’t be sleeping ruff on the K&H Pet Products Pillow-Top Orthopedic Lounger Sofa Dog Bed. The thick orthopedic foam base with fluffy pillow-top sleeping surface with an open front is inviting and accessible for senior pets. Plus, it features a removable cover that is machine washable for easy care and features easy grip zippers. The bed is available in various sizes and is on sale for $59.43.

dCee Medium Pet Sofa – Dog Sofa $219.00, now $197.99

dCee pet sofa

Give your pet’s bed an update that can fit in any living room with this Soft Velvety Pet Couch. The upholstered pet sofa bed cushion with cotton-covered PE foam supports dogs’ and cats’ joints and provides them with good sleep. You can buy one on sale at $197.99.

Best Friends by Sheri The Original Calming Donut Bed $34.99, now $29.99

Sheri dog donut

This Calming Donut Cat and Dog Bed in Shag Fur could be a hit with your best friend. The round shape and 7-inch tall bolster will make this the perfect bed for cuddling up and burrowing, helping to calm dog anxiety and provide a sense of security while your pet sleeps. It comes in various colors and is on sale for $29.99.

Amazon Prime Big Deal Days pet stocking stuffer sales

Chuckit! Ultra Ball Dog Toy, Pack of Two $13.99, now $5.30

Chuckit ultra ball

Snag these Chuckit! Ultra Ball Pack of 2 for the Fido that loves to fetch at a 62%discount. The balls are tough, durable and better than standard tennis balls. Ultra Ball is made of durable rubber, yielding an ultra bouncy, exciting fetch experience on land or water thanks to its lightweight, buoyant design. On sale now for $5.30.

Hyper Pet Dura-Squeaks Stick Dog Toy, Medium $18.72, now $7.50

Dura squeaks dog toy

The Hyper Pet Dura-Squeaks Stick Dog Toy might be your dog’s next hit stocking stuffer and you can rest easy knowing that it’s safe and non-toxic. The Dura-Squeaks product line is made from thermoplastic rubber (TPR) and does not contain BPA, making this a safe & fun dog toy. It is built to have an unpredictable bounce, which will entertain your pup for hours, along with a squeaker sure to stimulate interest. On sale now for $7.50.

SmartyKat (3 Count) Fish Flop Crinkle Catnip Cat Toys $8.99, now $4.62

SmartyKat

Keep your cat amused with this SmartyKat (3 Count) Fish Flop Crinkle Catnip Cat Toys. The catnip, crinkle material and feathers drive cats wild. The toys are perfectly sized to bat and carry. On sale now for 49% off the list price at $4.62.

Amazon Prime Big Deal Days pet grooming supply sales

LBFO Dog Grooming Kit, Pet Hair Vacuum and Dog Dryer with Grooming Tools $179.99, now $99.99

LBFO Dog Grooming kits

If you’ve been contemplating DIY pet grooming, snag this LBFO Dog Grooming Kit, Pet Hair Vacuum, and Dog Dryer with 6 Pet Grooming Tools. The vacuum cleaner pet hair 6-in-1 grooming kit caters to various grooming requirements, including drying your dog’s coat post-bathing. The trimmer and accompanying combs allow you to create your dog’s preferred style effortlessly. The grooming brush and de-shedding brush help eliminate excess hair. It is on sale now for $99.99.

Professional Dog Grooming Kit – All Pet Safe Cat Hair Trimmer $44.99, now $19.99

Cordless groomer

Try this Professional Dog Grooming Kit – Cordless Low Noise Dog Clippers for Grooming Thick Coats – All Pet Safe Cat Hair Trimmer for a more low-key commitment to your dog grooming. The kit includes dog hair clippers, nail trimmers and shears. Owners of anxious pets will appreciate the low-vibration, precision motor that ensures whisper-quiet operation and a stress-free grooming experience. The kit is on sale for $19.99.

DeFi comes with significant risks as well as benefits

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The European Securities and Markets Authority (ESMA) — the European Union’s financial markets supervisory authority — released an article on decentralized finance (DeFi) and the risks it poses to the EU market on Oct. 11. 

In a 22-page report, the ESMA admits the promised benefits of DeFi, such as greater financial inclusion, the development of innovative financial products, and the enhancement of financial transactions’ speed, security and costs.

However, the paper also highlights the “significant risks” of DeFi. According to the ESMA, the first is liquidity risk tied to the highly speculative and volatile nature of many crypto assets. The authority compares the 30-day volatility of Bitcoin (BTC) and Ether (ETH) with the Euro Stoxx 50 index, with the cryptocurrencies being, on average, 3.6 and 4.7 times higher than the stock index.

The ESMA doesn’t believe that DeFi manages to avoid counterparty risk, even if, in theory, it should be lower or even nonexistent due to smart contracts and atomicity. However, smart contracts are not immune to errors or flaws.

Related: EU mulls more restrictive regulations for large AI models: Report

DeFi is especially vulnerable to scams and illicit activities as it lacks Know Your Customer (KYC) protocols, according to the ESMA. Another important source of risk for DeFi users, as specified in the report, is the lack of an identifiable responsible party and the absence of a recourse mechanism.

However, currently, DeFi and crypto, in general, do not represent “meaningful risks” to financial stability, the report concludes. That is because of their relatively small size and limited interconnectedness between crypto and traditional financial markets.

The ESMA pays close attention to the crypto market, releasing its second consultative paper on the Markets in Crypto-Assets regulations on Oct. 5. In the 307-page document, the regulator suggested allowing crypto asset providers to store transaction data in “the format they consider most appropriate,” if they can convert it into a specified format should the authorities request it.

Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis