minenovo
Active member
The European Supervisory Authorities (ESAs) issued a warning to the public about the risks involved in cryptocurrency assets. According to the warning, many such assets are highly speculative and consumers “face the very real possibility of losing all their invested money if they buy these assets”.
The three ESAs (the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pension Authority (EIOPA)) issued a joint statement with a checklist of warning signs that investors and traders should go through before indulging in high risk crypto trade.
They particularly focused on misleading advertisement, especially that conducted by influencers. If a deal sounds too good to be true, then it probably is.
They also focused on the risks involved in NFTs and various DeFI protocol projects.
Source
Personally, I do agree there is risk involved, but this is still a vibrant industry. I think it is important to do extensive research before investing and stick to popular, safe projects, but there is no need to avoid the industry altogether.
The three ESAs (the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pension Authority (EIOPA)) issued a joint statement with a checklist of warning signs that investors and traders should go through before indulging in high risk crypto trade.
They particularly focused on misleading advertisement, especially that conducted by influencers. If a deal sounds too good to be true, then it probably is.
They also focused on the risks involved in NFTs and various DeFI protocol projects.
Source
Personally, I do agree there is risk involved, but this is still a vibrant industry. I think it is important to do extensive research before investing and stick to popular, safe projects, but there is no need to avoid the industry altogether.
