Stay away from lesser-known cryptocurrencies such as PRiVCY, say experts

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Lately, there has been a buzz around the token called, PRiVCY, which has reported to give as high as 4,00,00,000% in a day. It is not the first time that small coins have been in news. A few weeks back, DubaiCoin, jumped by over 1,000% in under 24 hours after falsely claiming to be the official cryptocurrency for the city of Dubai. With these new but lesser-known cryptocurrencies giving mind-boggling returns should one consider these cryptocurrencies?

“We request our users to do adequate research before investing in any small-cap coin that is not in the top 30 list currently. Coins such as PRiVCY or DubaiCoin are not yet listed in any Indian exchange because it does not filter through the checks that we do before listing. They are highly volatile and controlled by a few individuals. Users can be rest assured that once it’s available in top Indian exchanges, they can subsequently consider parking some money in them,” said Vikram Subburaj-Co-Founder and CEO of Giottus Cryptocurrency Exchange.

Experts also say that many people invest in lesser-known coins as penny stocks. But before doing this it is important to follow due diligence and should understand the roadmap for these project. Avinash Shekhar, Co-CEO of ZebPay, said, “Many find investing in such lesser-known coins as investing in penny stocks. Most of them are cheap compared to coins with a large market capitalisation or a high rank. When it comes to investing in these small coins (or any coin), investors should do their due diligence in learning about the underlying technology behind these coins, the roadmap for the project, and more. We always suggest starting with the well-known crypto assets like bitcoin and ether for the long term using rupee costs averaging and SIP.”

“It is important to understand the risks associated with these investments. We believe in investing in education first before you put money into any asset class. The same goes for crypto assets. Investors should be prepared for ups and downs and only invest with risk capital. There are many projects out there with associated cryptocurrencies. Some of them will become successful in the future and might see an increase in their value. Some of them fail and might lose their value,” Shekhar added.

Currently, PRiVCY project is featured as an ‘Untracked Listing’ on Coinmarketcap.com. The website states that PRiVCY has a current supply of 22,175,970 with 16,508,939.19807 in circulation. The last known price of PRiVCY is $0.0070448 and is down -100.00 over the last 24 hours.

Incidentally, when the DubaiCoin jumped by 1,000% in a day the Dubai government had to issue a clarification from the official handle. “Dubai Coin cryptocurrency was never approved by any official authority. The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors,” the tweet said. Arabchain Technology, the company behind the DubaiCoin token, earlier in its press release stated that DubaiCoin would soon be used to purchase goods and services. It also stated that its value will be regulated by the city of Dubai.