Question of the Week -- Are cryptocurrencies a bubble?
By the C|C Whistleblower Lawyer Team
The popular cryptocurrency Bitcoin was worth less than $1,000 a year ago—and now is worth over $16,000 (the exact price changes constantly). This explosive rise is leading analysts to call its growth a bubble, or even “the bubble to end all bubbles.” And it’s not just Bitcoin. A number of cryptocurrencies exist, with varying levels of transparency about valuation, strength, and longevity.
ICOs (initial coin offerings) raise additional concerns. This increasingly popular method for start-ups to raise capital evades many of the protections offered to those who invest in traditional SEC-regulated markets. Recent SEC enforcement actions against fraudulent ICOs suggest that there is a real potential that nefarious companies will abuse these new currencies.
What do you think? Are cryptocurrencies a bubble?
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