The California Attorney General’s office is launching a new website warning people of the risks that come with digital currencies.
California Is Warning Traders About Crypto’s Dangers
California says there are simply too many crypto scams out there that people have fallen for. Regulators in the Golden State suggest that between the Ponzi schemes, the romance scams, and all the other digital dangers out there, crypto has given way to a world of criminality that cannot be controlled unless people have the right knowledge.
California attorney general Rob Bonta explained in a recent news release:
From celebrities to your next-door neighbor, it seems like everyone these days is investing in cryptocurrency based on the promise of fast and easy money. Don’t fall for a fantasy. Cryptocurrency, like all investments, carries significant risks, and there’s no guarantee that you’ll see large – or any – returns.
The website will feature information about what to avoid while also providing tips for those seeking to engage in legitimate crypto trades. Some of the data will discuss purchasing non-fungible tokens (NFTs), for example. It will also answer questions regarding the sale and transfer of digital assets.
Bonta was adamant that anyone looking to engage in crypto trading needs to do their due diligence and check out the legitimacy of every exchange or company they do business with. He says traders need to be aware of the problems stemming from the space and that they should ensure they’re always spending money wisely.
He mentioned:
You should only invest money you are willing to lose, and you should be on the lookout for red flags and potential scams.
Among the tips the website gives are to avoid any promotions that involve celebrity faces or endorsements. Bonta and his team said that many of these promotions are not real, and that several of these celebrities have not given permission for their likenesses to be utilized. Thus, traders are likely entering phony trading schemes that could see their money vanish for good.
He also said that any coins bearing names similar with mainstream currencies should be avoided at all costs. A prime example is Ethereum Max, which of course, stems from the Ethereum digital currency, presently the second largest cryptocurrency in the world.
What to Steer Clear Of
Not long ago, reality star Kim Kardashian was hit with a $1 million+ financial penalty by the SEC for unlawfully promoting the asset.
Lastly, Bonta says that no legitimate cryptocurrency firm will bombard you with phone calls or other forms of contact. You should not respond to phone calls, nor should you give in if any of these firms require heavy payments. He also said that no company can guarantee large returns, and thus statements revolving around what you’ll get back should not be believed.
Source: https://www.livebitcoinnews.com/california-establishes-new-site-discussing-digital-currency-dangers/