The mania about cryptocurrencies, ICO, blockchain and so on is getting bigger every day. The average investors are trying to join in, and price levels are touching a new peak.
However, some issues are still pending, and investors need to ask themselves if it’s worth the risk. Please find below few examples gathered form stories published recently:
According to bitcoin.com, Bittrex exchange clients, cannot withdrawal their funds. If exchange clients cannot get their money back, there is lack of trust between the tparties.
Another bitcoin.com article suggested that Bitfinex exchange suffered from flash crashes and DDoS attacks. Technical problems made trading difficult, and left traders unable to react and manage their positions properly. The article also suggested that, Bitfinex’s business ties and conflict of interest are remain unclear.
Straitstimes reported that Quoine (a cryptocurrency exchange) is being sued n Singapore due to unfulfilled trades, and bitcoin.com reported that Bitfinex exchange is being accused of “market manipulation,” “misleading patrons,” and “publicly trading shares of a private company” illicitly.
The bitcoin price is still very volatile (volatile means that you may loss part or all of your invested funds), and once the regulated exchanges in the U.S. will start offer their Bitcoin future contract, the volatility problem may get bigger.
Coinbase issued a statement saying that “we wanted to remind customers that access to Coinbase services may become degraded or unavailable during times of significant volatility or volume. This could result in the inability to buy or sell for periods of time“.
The study “The ICO Gold Rush: It’s a Scam, It’s a Bubble, It’s a Super Challenge for Regulators” suggest that, ICOs provide a new and innovative structure for raising funds to support new and innovative ideas and ventures. However, many ICOs are offered on the basis of utterly inadequate disclosure of information, and the decision to invest in them often cannot be the outcome of a rational calculus.
The above issues are a reminder to all of us. The cryptocurrencies world carries risk and opportunities, you must be educated investor in order to enter this market. You should never invest what you cannot afford to lose.