New York attorney general issues digital asset ultimatum, says cryptocurrency is causing more pain than gains for investors

The New York attorney general has issued a warning to digital asset investors, saying that even well-described cryptocurrencies are too risky after a market crash last month that saw the industry lose hundreds of billions of dollars in market capitalization.

Dans un nouveau communiqué de presse, la procureure générale de New York, Letitia James, déclare que les fluctuations brutales des prix, la fraude, le vol, les problèmes de sécurité et les bulls spéculatives associées deséris auxér actifs important punctus to piques investors.

Jack says,

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“Time and time again, investors lose billions due to risky cryptocurrencies. Even well-known virtual currencies from reputable exchanges can collapse and investors can lose billions in the blink of an eye.”

Often times, cryptocurrency investments cause more pain than gains for investors. I urge New Yorkers to be careful about investing their hard-earned money in risky investments in cryptocurrencies that can produce more anxiety than wealth.

Other risk factors for cryptocurrency investors, according to the attorney general, include limited oversight, as she notes that digital asset exchanges are not federally regulated unlike the Nasdaq or New York Stock Exchanges.

James also says that holding stablecoins is risky, and it has been proven that these crypto assets are not 100% stable due to the nature of the assets they hold at times.

Another risk factor, according to James, is the tendency of cryptocurrency exchanges to pretend to have technical problems during times of accumulation.

“There is no guarantee that you will be able to liquidate your investments whenever you want – such as when the crypto markets start to crash. In times of crisis, trading platforms may stop 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 cryptocurrency exchanges prioritizing their own investments over the interests of their clients as additional risk factors for investors.

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform 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 that any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Featured Image: Shutterstock/Grand Duke/Andy Chipus

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