Yesterday, NASAA or North American Securities Administrators Association released a warning for investors with respect to risks that ICOs (Initial Coin Offerings) and cryptocurrencies have. A statement from SEC promptly followed this warning which reiterated as well as commended NASAA’s message. Let us go through all the details in the following sections.
NASAA Warning About Crypto
In this warning NASAA encouraged all investors to see beyond the present hype while planning to invest in cryptocurrencies as well as their derivatives. According to NASAA, such step will help investors clearly understand if there are any associated risks that they need to be wary of.
“Investors need to look beyond hype and the headlines for clearly understanding risks that they have to face while investing in cryptocurrencies and futures contracts as well as other financial products in which such virtual currencies get linked in any way with the underlying investment.” Joseph P. Borg (Alabama Securities Commission Director and NASAA President) said.
— NASAA_News (@NASAA_News) January 4, 2018
Joseph also mentioned that cryptocurrency markets having volatile nature are able to attract new investors since they are not that well informed regarding kind of investment they are going to make.
“Recent fluctuations in prices as well as speculation occurring in investments that are related to cryptocurrencies are enough to tempt investors to make rush decision about investments that they are fully aware of,” Joseph said.