In the past few weeks, several lesser-known cryptocurrencies have
skyrocketed in value and reputation.
I want to alert readers to some alarming trends in the cryptocurrency world.
Although it can be tempting (and lucrative) to jump onto the latest highflying digital currency,
many of these investments might be headed for disaster.
In some cases these projects have made literally zero progress and have not written a single line of code.
Others might not even hide their attempt at being a Ponzi.
If you do decide to invest in these assets, I can’t blame you.
They’re fast moving, exciting and promise the opportunity to double
or triple your investment over the course of days.
Similarly, a new batch of penny stocks have cropped up that claim to be investing in blockchain.
Some of them even sell iced tea and blockchain technology (talk about synergy).
For these companies, the story is the same — avoid them.
This is one of the oldest scams on Wall Street and happens every few years as an industry
or technology becomes hot.
It happened a few years ago with marijuana stocks and not long before that with shady Chinese companies.
If you want a quick look into the future, do yourself a favor and look up the
stock price of some companies in those industries.
With a few rare exceptions, this is where many of these new blockchain
companies are headed.