Bitcoin dips to around $16,300

Volatile?

After hitting a record high of $17,270 yesterday, the world’s biggest cryptocurrency has dipped slightly.

Bitcoin was quoted at $16,390 on the Luxembourg-based Bitstamp exchange, down half a percent or $80 from yesterday.

Meanwhile, the head of the US Securities and Exchange Commission has warned cryptocurrency investors to beware of scams and criminal activity in the sector.

SEC chair Jay Clayton has stated: “If a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost.”

Clayton warned investors to ask several questions before investing in cryptocurrencies or “initial coin offerings” (ICOs), including “are there substantial risks of theft or loss, including from hacking?” and “is the offering legal?”

“A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation,” Clayton added.

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