How to Spot Graphene Investment Scams?

Graphene is used in display screens, batteries, and electrical circuits. Its atomic structure involves a single layer of carbon atoms arranged in a honeycomb lattice type of carbon derivative. The substance was first isolated in 2004 when scientists Andre Geim and Kostya Novoselov at the University of Manchester tried to construct a graphite transistor. 

This process made use of the sheets of thin graphite. The researchers repeatedly peeled off the pencil lead until the one-atom-thick graphite left graphene. The researchers claim its transparency, flexibility, conductivity, and durability are useful for many purposes. 

Why are Investors Putting Money in Grapheme?

Graphene is a million times thinner than a human hair. Still, it is 200 times stronger than steel and is a good conductor of heat and electricity, making it suitable for electronic circuits. They believe the new graphene-based ICs will use less power than normal circuits and run a thousand times faster. 

In addition, it is a flexible, transparent, water-resistant material. Hence, investors are investing a lot of money in researching how to commercialise it.

The industries incorporate the mineral into their products due to its low friction properties, which are ideal for aerospace components. Still, it is less than 50 per cent of the weight of carbon fibre composites. 

How To Identify A Scam?

The FCA does not regulate graphene, and its investment is not protected by the UK's Financial Services complaints or the compensation scheme. Graphene batteries offer a high-performing, fast-charging, secure alternative to performing secondary functions like heat dissipation. 

The researchers and companies claim it holds great promise for future development in electronic devices and integrated circuits. Still, certain claims are made that the graphene-enhanced batteries investment schemes are fake, and if needed, manufacturing firms can buy them in large quantities. 

How are the Investors Contacted?

Investors are often called out of the blue to invest in such projects through emails, word of mouth, meetings, or exhibitions. The sales team or the call centre executives apply pressure tactics to sell it as a high-return option like carbon credit, overseas lands or rare mineral options. 

However, the investment is unregulated, and it can be difficult to confirm if the firm is giving a genuine product. For example, investors are unaware that not all graphene-enhanced batteries use graphene, and some use a derivative or a multi-layer structure of the essential mineral.

  Also, it has been found that if it enters the market, the prices will drop fast when the companies improve their manufacturing and increase their production capacity.  

Beware of Buy-Back/Follow-Up Calls

Sometimes, the scammers use a different strategy to extract more money from the vulnerable victim, seeking returns on their previous investment. For example, they may offer to get your money back in return for a small fee or buy back your investment for a fee. 

To avoid any such fraud – one should be aware of the business. For example, many customers are defrauded through identity theft, where the victim's bank details are stolen.

Also, the FCA says there is a strong possibility that your investment in graphene is a scam because it is an unregulated business. As a result, one may not get the genuine product/ scheme easily.