ATA is the latest cryptocurrency to hit the market – but Brits are being warned to approach it and other new coins with “extreme caution”.
The new coin was officially launched by Automata Network today, after being listed on cryptocurrency platform Binance.
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Not much is known about the coin because it is very new.
But experts have warned Brits about piling cash into volatile cryptocurrencies, claiming you could potentially lose all your money if you invest.
Buying cryptocurrencies, like any investment, is a very risky business and making money is never guaranteed.
You should make sure you know the risks of investing in cryptocurrencies and that you can afford to lose any money you put in.
Cryptocurrencies are highly volatile, so the value of your investments can go down as well as up in the blink of an eye.
As always, never invest in something you don’t understand.
Here’s what you need to know about ATA, including the risks of investing in it.
What is ATA?
Little is known about ATA, as it’s among the newest cryptocurrencies to hit the market.
As it only launched today, there is limited records of how much its worth. It is currently sitting around $1.80 at the time of writing, according to Coinmarketcap.
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
According to its website, Deli Gong is listed as co-founder of the coin.
He worked at blockchain platform Zilliqa before creating Automata Network.
The cryptocurrency launched today after being listed on Binance, which means investors can now trade coins. In total, there are 1billion ATA tokens.
However, Automata Network issued warnings on it’s Twitter page leading up to its launch about scammers attempting to impersonate the scheme.
It warned its followers not to fall for scammers trying to sell fake ATA coins.
What are the risks of investing in ATA?
Investing in any cryptocurrency is a gamble.
Because cryptocurrency firms aren’t regulated in the same way other financial companies are, you won’t have any protection if things go wrong – and you could lose all your money.
You may also have trouble converting crypto assets back into cash as it may depend on the demand and supply in the existing market.
Brits have also been warned that cryptocurrencies, especially new ones, could potentially be scams.
Cryptocurrencies which reward people who buy and hold onto tokens – and slap penalties onto those who don’t – could be a multi-level marketing scheme, making it a very high risk investment.
Hargreaves Lansdown senior investment and markets analyst Susannah Streeter said investors should only “dabble with money they can afford to lose” because new cryptocurrencies are so volatile.
Commenting on the launch of ATA, she added: “There have also been warnings on social media in recent days that scammers could be attempting to impersonate the network and be selling fake ATA tokens, so traders should proceed with extreme caution.’’
Investment platform cryptoasset analyst Simon Peters said anyone considering investing in new coins should do their research, and not just put money in just because the price is going up.
He added: “Look beyond headline numbers, understand what you are investing in, and do not invest more than you can afford to lose.”
While AJ Bell financial analyst Danni Hewson urged Brits to approach new cryptocurrencies with “extreme caution”.
She said: “The UK regulator has warned anyone investing in this area that they should be prepared to lose all their money, a stark warning that shouldn’t be taken lightly.”
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