Jesse Powell, founder and CEO of Kraken sent a warning in an interview to bitcoin users to be mindful of the potential risks and should not rely on the instability of the market.
In the same time, the European Union regulators on Monday alerted that cryptocurrencies are not solid investments and should be considered as “highly risky” assets.
Powell noted that investors trying to trade in cryptocurrencies should be ready to bear any losses in case of any market volatility.
He went on to further express that customers should be on the lookout and take a closer look at the basis of any currency and try not to bargain on any currency.
Powell speaking at the World Government Summit in Dubai noted that his firm carried out a detailed check on all coins on its San Francisco-based exchange to ensure it was free from any fraudulent activity.
He was quick to add that there is no certainty that all coins are secured as there is possibility for things to take a turn especially if one can come up with $1 billion in 10 minutes.
In the meantime, the European Supervisory Authorities (ESAs) for securities, banking, security and pensions noted that the instability of cryptocurrency is a sure sign of a possible market collapse.
Speaking on the same topic, Warren Buffett, billionaire investor also gave a warning last month on the popularity bitcoin and cryptocurrencies are gaining and said it is probably too good too last long.
J.P. Morgan Chase Chairman and CEO Jamie Dimon also referred to bitcoin as “fraud.”
Nick Spanos, CEO of Blockchain Technologies Corporation responded to the question of whether cryptocurrency traders should heed to the warning of these investors and he said Warren is very effective in running his business but not all businesses are the same.