Vitalik Buterin, who is the creator of the Ethereum blockchain and cryptocurrency, warned investors that prices of cryptocurrencies could fall to near-zero at anytime and added that traditional assets were the safest place to store savings.
“Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time,” Buterin said on Twitter on February 17.
“Don’t put in more money than you can afford to lose.”
“If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet,” he added.
Buterin also advised investors to exercise caution against the several scams on Twitter that offer Ethereum. Scammers take only 10 minutes to copy his new profile picture on Twitter, he added.
“Don’t trust anyone who asks you for ETH on Twitter,” he said.
The 24-year old also said that “cryptocurrency media is now, even if out of ignorance/stupidity, complicit in making twitter scams look more legit.”
This is not the first time Buterin has voiced caution against the cryptocurrency craze.
In December, he said the sharp run up in cryptocurrency prices are distracting the community from its social purpose.
He stressed on the “need to differentiate between getting hundreds of billions of dollars of digital paper wealth sloshing around and actually achieving something meaningful for society.”