New York’s attorney general issues a warning to digital asset investors, saying even well-established cryptocurrencies are extremely risky after last month’s market crash that saw the industry lose hundreds of billions of dollars in market capitalization.
In a new press release, New York Attorney General Letitia James says wild price swings, fraud, theft, security issues and speculative bubbles associated with digital assets all pose significant financial risks to Investors.
“Time and time again, investors lose billions from risky investments in cryptocurrencies. Even well-known virtual currencies from reputable trading platforms can still crash and investors can lose billions in the blink of an eye.
Too often, cryptocurrency investments create more pain than gain for investors. I urge New Yorkers to be careful about putting their hard-earned money into risky cryptocurrency investments that can generate more anxiety than fortune.
Other risk factors for crypto investors, according to the attorney general, include limited oversight, as she notes that digital asset exchanges are not federally regulated unlike the Nasdaq or the New York Stock Exchange.
James also says that owning stablecoins is risky, pointing out that these crypto assets are not 100% stable due to the nature of the assets that sometimes back them.
Another risk factor, according to James, is the tendency of crypto exchanges to pretend to have technical issues in times of heightened volatility.
“There is no guarantee that you will be able to liquidate your investments whenever you want – like when the crypto markets start crashing. In times of crisis, trading platforms may halt trading or claim to be experiencing technical difficulties, preventing you from accessing your assets.
The Attorney General also mentions hidden trading fees and the possibility of crypto exchanges prioritizing their own investments over the interests of their clients as additional risk factors for investors.
Check Price Action
Don’t miss a beat – Subscribe to receive crypto email alerts straight to your inbox
follow us on TwitterFacebook and Telegram
Surf the Daily Hodl Mix
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.
Featured Image: Shutterstock/Grand Duke/Andy Chipus
We wish to say thanks to the author of this post for this amazing web content
NY Attorney General Sounds Alarm on Digital Assets, Says Crypto Creates More Pain Than Gain For Investors
Check out our social media accounts and other pages related to themhttps://metfabtech.com/related-pages/