YEREVAN (CoinChapter.com) — Bitwise Chief Investment Officer Matt Hougan warns that many bad cryptocurrencies are being sold for very high prices. He says not all increasing cryptocurrencies should be, telling investors to be careful with high-priced crypto projects.
People are moving their money from Bitcoin into other, riskier cryptocurrencies, raising their prices overly, according to Hougan. He notes:
“Be careful. In excited markets, bad projects can get a lot of money, and many are already too expensive.”
$1T of Wealth Deployable into Lowlife Coins: Bitwise
The Bitwise executive says many people are interested in cryptocurrencies, not just Bitcoin. This is because when people make money from Bitcoin, they feel rich and start looking at other, riskier places to invest their money. This happens with regular money when people invest in smaller companies or spend more on vacations after making money from big companies.
Since November 2022, Bitcoin has added $1 trillion to its value, making a lot of new wealth. Now, people with Bitcoin money are buying other cryptocurrencies, which don’t need much money to make their prices go up.
Technology improvements in cryptocurrencies, like updates to Ethereum and new tech layers, also make people more interested in them. These improvements help use blockchain for more things than just money.
Bitwise thinks the current increase in buying different cryptocurrencies won’t stop soon because the rise in Bitcoin’s value this time is different. It’s because new investors are putting their money into cryptocurrencies through ETFs (a type of investment fund). As long as new money keeps coming in, this trend will continue.
He finishes by saying what’s happening now differs from before; it’s not just about alternative cryptocurrencies increasing in value. But he warns people to be careful because not all projects that get money deserve it, even though some are really good.
Watch Your Wallet: The Sneaky Side of Crypto Scams
Because there are many scams in the cryptocurrency world, people are very cautious about new cryptocurrency projects.
On Dec. 28, blockchain security company Immunefi reported that in 2023, hackers and scammers stole $1.8 billion from Web3 technologies.
Investors are now carefully checking the backgrounds of the people who create these projects to see if they are safe to invest in. This job is getting harder because of new technology like AI.
Jesse Leclere, who studies blockchain for CertiK, says scams are becoming more sophisticated. He advises everyone to be extra careful and watch out for well-planned scams.
