A SEC Advocacy Director applied to all the potential investors this week with a request to think before they leap.
Director of the SEC’s Office of Investor Education and Advocacy, Lori Shock, noted on a blog post on Wednesday, that cryptocurrencies and all the related investments are still new, and some of the investors might have no idea who they deal with, where do they invest money and what they will get back.
Most of his post disclosed the risks concerned the investment in cryptocurrency markets, and advised the readers to do an independent and deep research on the product.
Last week, the CFTC also issued its warning on different groups operating in the crypto market. Some other warnings also warned investors on trusting retirement schemes claiming government agency backing and publicly-traded companies promoting to business lines connected with blockchain and cryptocurrency tech.
Shock wrote in the end that despite being new opportunities, cryptocurrencies involve lots of risks, thus the investors should be careful and investigate the market before investing into it. She asked investors to act with caution, do their research, and evaluate their financial goals, and, of course, not to flip a coin when making investment decisions.