How risky is Mooncoin and why is the price going down?
THE price of Mooncoin has fallen recently after soaring to its highest ever level in May.
We explain the huge risks of investing in the cryptocurrency and why its value is down.
In comparison, it was worth a higher $0.00039226 on May 20.
It's difficult to know exactly why investments fall in value, but it typically happens when and if a large number of investors sell off their assets.
Mooncoin's previous rise in price also "appears to be driven by speculation with traders hoping for a short term profits rather than any belief in the long term benefits", Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told The Sun.
Last month, the Met Police also seized nearly £180million in the largest-ever cryptocurrency raid in the UK as part of a money laundering probe.
How risky is Mooncoin?
Investing in any cryptocurrency is essentially gambling, and you risk losing all the cash you put in.
However, investors should be extra careful about putting any cash into Mooncoin, according to Mrs Streeter.
She told The Sun: [Mooncoin] claims to have a roadmap laid out, but it’s clearly work in progress and given the competition in the blockchain payment space, it’s success is far from guaranteed.
"Traders should be extremely wary of any coin or token offering risk free return and look carefully at the long term use case of any coin or token."
She added that other websites are also operating with Mooncoin in the title, attempting to lure in investors with promises of high earnings without risk.
This should be "a huge red warning light" to potential investors, especially given the volatility of the crypto markets.
Mrs Streeter said: ";Traders should deal with such promises as potential scams, with other only people likely to make money being the scammers themselves."
While Myron Jobson, personal finance campaigner of Interactive Investor, added to The Sun: "There is precious little information on Mooncoin for the average investors to truly size up the crypto.
"Mooncoin is in the early, nascent period of development and implementation, joining a number of new cryptocurrency offering a roadmap with lofty ambitions with little evidences to suggest that these goals can be achieved.
"For most investors, sticking to mainstream investments is the best strategy."
The following claims that Amazon could start accepting the crypto as a payment method by the end of 2021.
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