Yesterday, Bitcoin blew past the $20,000 benchmark, and in less than 24 hours, the digital asset has already exceeded $22,000. But while a lot of retail and institutional investors are scrambling for a piece of the action, Brain Armstrong, CEO of Coinbase, has issued words of warning to newcomers to the industry.
Armstrong admitted that his company takes a “long-term view of the market.” He further emphasized that investing in digital assets was “not without risks.” The cryptocurrency industry has seen a fair share of rug pulls and exit scams. We recently reported a possible exit scam from DistX.
In a Medium blog post on Wednesday, the CEO said:
While we’re always excited to see increased interest in crypto, it’s also important to point out that this is not only a time of high volumes but also price volatility. The market can move in either direction much faster than equity markets.
According to Armstrong, investors should look beyond short-term speculations. He also advised customers to “seek out resources” and consult financial experts before making any major decision. The bottom line is that investors should not “FOMO” into bitcoin or any other digital asset.