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19 Feb, 2018 09:51

Ethereum founder warns cryptocurrencies ‘could drop to near-zero at any time’

Ethereum founder warns cryptocurrencies ‘could drop to near-zero at any time’

Virtual currencies are still a newcomer class in the world of assets and could drastically fall at any time, according to the founder of blockchain network Ethereum and the digital currency of the same name, Vitalik Buterin.

“Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time,” the entrepreneur tweeted. “Don't put in more money than you can afford to lose.”

According to the programmer, people shouldn’t invest into assets which are so highly volatile.

“If you're trying to figure out where to store your life savings, traditional assets are still your safest bet,” Buterin added.

Digital currencies managed to recover slightly after a massive sell-off earlier this year that washed nearly $100 billion out of the market in a single day. Bitcoin, the world’s number one cryptocurrency, recovered to $11,000 this week after falling below $6,000 earlier in the month.

Other digital currencies also rose after posting steep losses last month. Ethereum, the second-largest crypto by market value, was trading at $946, while third-ranked ripple climbed to $1.15.

In December, the ethereum creator compared the enormous investment in the crypto market to the record sum paid for the world's most-expensive painting, Leonardo Da Vinci's ‘Salvator Mundi’.

Buterin, one of the best-known figures in crypto investing, has been impersonated on Twitter by scammers promoting dubious cryptocurrency offers. The accounts commonly offer users to send an amount of cryptocurrency in exchange for a larger amount.

The programmer had to issue a warning for users, urging them not to trust people offering cryptocurrency on Twitter.

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