It preys of financially illiterate people who don't know better because they have been bombarded without any pause by endless list of bullshit as soon as they put the word 'investment', 'money', 'market' or whatever in any search box in the world, that being the one from your local bookstore, online newspapers, youtube, google, reddit and on and on and on...
And if you tell me fractional banking system is a ponzi scheme then you either don't have a clue of what they are or you pretend to.
It doesn't matter which companies, individuals or wathever .org or 'coin something' websites promote them or make a business of them because they're all fucking hucksters at worst or paid shills at best.
Talking 'security' about investment scams is like talking personnal safety in '101 suicide' book.
Sure, there are institutional investors holding crypto, but how is this related to the current discussion of securing crypto? They're not exactly keeping their crypto holdings in a software wallet connected to the internet. They typically outsource that to companies that specialize in crypto custody, which presumably have better security practices than the OP.