Ethereum co-founder Gavin Wood is a word of advice for people who want to invest in various cryptocurrencies. He said that crypto investors need to be more aware about what is backing their virtual currency. “I would hope that people pay more attention to what is belying the currency name when they get involved in a community, ecosystem, economy,” Wood said in a statement to Reuters on the sidelines of the World Economic Forum in Davos. Also Read - Epic Games CEO warns against Fortnite cryptocurrency scam: Here’s what he said
“The technology cannot prevent people from making mistakes but can help those who want to understand better the facts of the world, what they’re buying,” Wood added. Also Read - India ready with consultation paper on cryptocurrencies: Economic Affairs Secretary
His statement follows the destabalisation of crypto market, which was triggered by the collapse of the Terra ecosystem, which consists of Terra Luna and TerraUSD cryptocurrencies. At the time of writing this story, Terra Luna was trading at $0.0001529 while TerraUSD was trading at $0.08931. Both these cryptocurrencies are pegged against the US Dollar. Also Read - Cryptocurrencies are worth nothing and should be regulated to protect people: European Central Bank Chief
It is worth noting that this is not the first time that co-founders of one of the biggest cryptocurrencies in the world, Ethereum, have cautioned against the use of this digital currency.
In an interview with the TIME magazine earlier this year, Ethereum co-founder Buterin has expressed his concerns over the bulging crypto market saying that too many investors were taking wrong lessons from crypto enthusiasts who claimed to have struck gold as the crypto market stabalised.
“Crypto itself has a lot of dystopian potential if implemented wrong,” Buterin had said at the time adding, “If we don’t exercise our voice, the only things that get built are the things that are immediately profitable…And those are often far from what’s actually the best for the world.”
What RBI governor said about cryptocurrencies
More recently, the Reserve Bank of India (RBI) governor too cautioned people about the ‘volatile’ nature of cryptocurrencies. In an interview with CNBC TV18 RBI Governor Shaktikanta Das said that the use of cryptocurrencies could seriously undermine India’s financial stability and its macroeconomic stability.
“This [crypto] is something whose underlying [value] is nothing. There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial, and macroeconomic stability of India,” he said as reported by Gadgets 360.