Zenith Wealth Partners

Coinye, The Crypto Company Sued By Ye

Written By: Alli Masoero, CFP® – Zenith Lead Financial Planner

Not Rich, Yet: A blog talking about finance in a way you’ll actually understand.

If you bought Coinye in 2014, I am sorry. But hey, at least you indirectly gave Kanye your money because he took it all when he sued the company!  Coinye is a prime example of the odd risks involved with crypto. In the last few months alone, we have witnessed a flurry of new Crypto lawsuits piling up as prices nosedive.

Dogecoin must be the latest lottery ticket that is going to make you rich, right? Or maybe you have a friend that made soooo much money in BTC? It’s often comical when I ask people why they invested in it. And let’s never forget the conspiracy theorists!

I personally invest my money in assets that will experience growth through proven strategies over time. In finance (that sounds so stiff lol), we make our assumptions based on years and years of data. The U.S. stock market has been around for roughly 300 years!   That’s 300 years of market downturns, recessions, and depressions. Whereas, Bitcoin was founded in 2009, and NFTs in 2012.

But …. Yeah, 13 years of relatively good market performance is DEFINITELY trustworthy.

I can’t emphasize enough how important research is when making an investment in something like a gorilla NFT or a random coin promoted on Instagram. It’s important to think outside of making a ‘quick buck’ and the media frenzy. 

In my experience, the wealthiest clients are the ones who have the foresight to admit they don’t know it all. They partner with experts to manage their money because they do not have the time, passion or knowledge to do it themselves.

Outside being a part of a very small group of ‘crypto millionaires’ – what are the other reasons you want to invest in cryptocurrency?

Have you completed independent research on crypto / NFTs? 

Are you aware of the risks involved?

Are you aware that cryptocurrency and NFTs are NOT subject to standard investment regulation?

Do you understand the tax implications of crypto investing?

Is it a good supplement to your other investments?

How long do you plan to hold onto crypto?

If you do not feel comfortable answering these questions, I encourage you to reach out to a professional before making your next crypto investment decision. Even many advisors, like myself, stay away from advising on crypto because we are still growing more familiar with the asset. Yeah, yeah, I know I am lame, but I am trying to make my clients money… not lose it.

Invest safely out there!

 

 

 

All written content is for information purposes only. Opinions expressed herein are solely those of Zenith, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

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