Warning to Investors from SEC Chairman: Crypto Is the Wild West, Beware!

SEC Chairman Gary Gensler never cryptocurrency units were not supported. He has repeatedly said that cryptocurrencies are unsafe investments.

Speaking at a Twitter space session organized by the US Army late Wednesday, Gensler once again expressed his skepticism about the issue.

SEC Chairman Crypto Is ‘Wild West’ And Most Tokens Will Fail

Gensler noted that the crypto industry is the “wild west.” The SEC Chairman has asked investors and companies to be careful because most cryptos are currently “not compliant” and do not comply with the law.

“Many of these again do not comply with securities laws, but they must.”

Further detailing why most tokens will fail, Gensler said:

“Most of these 15,000 tokens will fail. This is because venture capital fails, startups fail, and at the same time, history tells us there isn’t much room for microcurrencies, so we have the US dollar and Europe has the euro and the like.”

Gensler also warned participants to stay away from the market. He stated that it is quite easy to get “fear of losing the opportunity”.

With asset prices on the rise, “altcoin FOMO (fear of losing the opportunity)” is currently increasing in the market. As highlighted in a recent article, the crypto media is starting to fill up with tweets and mentions featuring terms like “Altcoins” and “Altcoinseason.”

However, the same serves as a precautionary warning. Traditionally, whenever asset prices rise, the crowd tries to FOMO.

As a result, a peak is usually formed and a decline occurs. After that, circumstances only turn around when the crowd begins to doubt.

The crypto market has drastically lost value over the past year. While the total market cap was over $3 trillion, that figure has now fallen to $890 billion.

*Not investment advice.