CRYPTOCURRENCY Telcoin aims to speed up money transfers – but investors are being warned about “wild price swings”.
We explain all you need to know about Telcoin and its value.
But first, a word of warning: 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.
What is Telcoin?
Telcoin is a cryptocurrency based on the Ethereum blockchain.
It was launched in July 2017 in Singapore to be the bridge between cryptos, blockchain and the telecommunication industry.
Through the technology, it claims to facilitate money transfers at high speed and at a low cost.
It partners with telecoms and mobile money platforms to make sending money “as easy as sending a text message,” according to its website.
Simply put, Telcoin is a blockchain adaptation of money transfer firms such as Western Union and MoneyGram.
Blockchain technology, which can seem very complicated, is a kind of database used to record transactions.
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.
What is the value of Telcoin?
The price of Telcoin is currently sitting at £0.035 ($0.05), according to CoinMarketCap.
At the time of writing, it’s up by 21% over the past 24 hours. In comparison, it was worth just £0.0071 ($0.0099) on May 1 this year.
Its market cap is currently £1.9billion ($2.7billion).
How risky is Telcoin?
Investing in any cryptocurrency is essentially gambling and there are no guarantees that you will see what you pay in go up in value.
It’s a speculative investment, with limited track records and no underlying value.
There is also no guarantee that you can convert crypto assests back into cash, as it may depend on the demand and supply in the existing market.
Nigel Green, founder of deVere Group, told The Sun: “Extreme caution should be exercised before investing in un-tested cryptocurrencies.
“The price swings can be expected to be wild and there’s a legitimate risk that investors could get burned.”
While Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, added: “Crypto fans are hoping to catch an upwards ride on yet more coins which have been slotted into the speculative arena, sold on the promise of being the latest great disruptors of current payments system.”
“Instead of relying on a bank for transactions, trust is placed in computer code logged on a blockchain, for peer-to-peer payments and contracts.
“Who will come out leading the pack in the future payments world is still very much a bet, with fierce competition amongst new and more established players as rapid changes ripple through the industry.”
She warned that a market shakedown could also render crypto assets “worthless.”
As always, you should never invest in anything you don’t understand.
In January, the Financial Conduct Authority warned that Brits risk losing ALL of their money if they invest in cryptocurrencies.
Meanwhile, an advert for a bitcoin exchange Coinfloor was banned in March for telling savers cryptocurrencies are a safe investment.
People considering investing in Bitcoin or shares and stocks have also been warned over “risky” tips being shared on TikTok.