What are the risks associated with investing in digital currencies for Champlain Funds?

1 answers

• Dec 19, 2021 · 3 years ago
  When investing in digital currencies, Champlain Funds should be aware of the risks involved. One risk is the potential for market manipulation. The cryptocurrency market is still relatively small compared to traditional financial markets, which makes it more susceptible to manipulation by large players. Champlain Funds should closely monitor the market and be cautious of any suspicious activities. Another risk is the technological risk associated with digital currencies. Blockchain technology, which underlies most digital currencies, is still evolving and may have vulnerabilities that could be exploited. Champlain Funds should conduct thorough due diligence on the technology behind the digital currencies they invest in. Lastly, regulatory risk is a concern for Champlain Funds. Governments around the world are taking different approaches to regulating digital currencies, and changes in regulations can have a significant impact on the market. Champlain Funds should stay informed about regulatory developments and adapt their investment strategies accordingly.
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