The best way to restore the first confidence in crypto is to create project that has actual use case and not just whitepaper. When they start seeing actual usecase of new projects then their confidence will be renewed again
I completely agree, there are few projects in the market from the real sector of life, it scares many people. First of all, you need to understand crypto, and the government is not making efforts to teach people this, and those few who study themselves, as a rule, suffer losses. This is the main reason why people are not sure about cryptography.
Why should the government get involved in this, because it is profitable for them to as many people as possible burned into the crypto currency and left this sphere with complete disappointment