Internet watchdog issues warning on cryptocurrencies
National committee says growing use of blockchain technology to issue virtual currencies raises new concerns
The National Committee of Experts on Internet Financial Security Technology has released a high risk warning, announcing that some companies have been speculating on the concept of blockchain technology to issue virtual currencies, Yicai.com reported.
The eye-catching performance of blockchain concept stocks have not gone unnoticed, as many Internet companies have announced the intention of introducing the technology.
For example, Renren, a Chinese social networking service provider listed on the New York Stock Exchange, has seen a 76.3% rise in its share price on January 2 and 3, right after the company made the announcement to pick up blockchain technology, with the aim of issuing its own Renren coin.
The committee thinks the trading prices of virtual currencies are subject to drastic fluctuations, due to the influence of various policies, technical updates and market speculation. Thus, investors should pay greater attention to risk prevention.