Crypto assets

Highlight risks, dangers to public

Recently, cryptocurrencies and other crypto assets - such as non-fungible tokens (NFTs) - have been in the spotlight.

News reports of a digital collage linked to an NFT being acquired for US$69.3 million (S$93 million) have fuelled interest.

A single tweet or even a recording of farts has become a "high-valued" digital asset, when it has no real value.

Investors should be aware of the extremely high risk that comes with these digital assets.

They should not get carried away by a few success stories and get caught in a booby trap.

I think the Government and Monetary Authority of Singapore should educate the public on the benefits and risks of crypto assets, similar to what is being done for problem gambling.

For other regular investment vehicles, we have a robust regulatory framework that safeguards investors and companies. These new assets, however, are highly volatile and extremely risky.

With almost no monitoring and tracking, this roller-coaster investment path may be a thrill for some but potentially disastrous for many others.

I hope the authorities will hold a public awareness campaign.

Ramamurthy Mahesh Kumar

A version of this article appeared in the print edition of The Straits Times on April 09, 2021, with the headline 'Highlight risks, dangers to public'. Subscribe