Jumping Into the Crypto Craze

The question of cryptocurrency and ICO regulations is a crucial issue, with many crypto believers expressing their concerns over excessive regulatory scrutiny towards the industry. Others, like head of regulatory relations at Ripple, Ryan Zagone, encourages regulatory measures to give long-term stability amidst the crypto craze. Recently, Zagone compared the existing crypto regulatory framework to the early days of the Internet.

The crypto craze ignited in 2017 when cryptocurrencies burst into the investing mainstream as the values of some virtual coins and tokens skyrocketed, led by Bitcoin.

Stories of “crypto millionaires” have attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments.

Before jumping into the crypto craze, investors need to be aware that some financial products being marketed as cryptocurrencies may be nothing more than public facing fronts for Ponzi schemes and other frauds.

Since these products do not currently fall neatly into the existing state and federal regulatory framework, it appears easier for unscrupulous promoters to make millions ripping off unwary investors. Investing in cryptocurrencies and tokens can be an extremely risky speculation with a high risk of loss.