Crypto-activum Risks

A. Algemene risico’s van crypto-activa

Marktrisico 

Crypto-activum markets are highly volatile and unpredictable. Unlike traditional financial markets, they are largely unregulated and can be significantly influenced by factors such as social media trends, public sentiment, regulatory news, and technological developments. This extreme prijsvolatiliteit means that the value of your investment can fluctuate dramatically and unpredictably, and there is a significant risk of losing your entire investment.

Liquiditeitsrisico 

Liquidity risk is the risk that an asset cannot be bought or sold quickly enough to prevent a loss or at a price that reflects its true market value. While some major crypto-activa like Bitcoin and Ethereum have high liquidity, others, particularly newer or smaller tokens, may have very low trading volumes. This can make it difficult to sell your assets at a desired price, especially during periods of market stress, and could result in significant losses.

Afwikkelingsrisico 

Settlement risk, or counterparty risk, is the danger that a transaction will not be completed as expected, even after one party has fulfilled their part. For our customers, this risk is mitigated because EU Internet Ventures BV processes transactions and guarantees that you will either receive the crypto-activa or get an immediate refund of your fiat funds. In the unlikely event that we are unable to deliver the crypto-activum after you’ve paid, we will refund your payment. However, it is important to note that due to operational processing times and the time required to secure liquidity, refunds, while immediate on our end, may take time to appear in your account.

B. Algemene dienstverleningsrisico’s

Wanneer u diensten gebruikt van EU Internet Ventures BV, bent u ook blootgesteld aan risico’s die verband houden met het platform zelf, waaronder maar niet beperkt tot:

• Operationeel Risico: The risk of loss resulting from technical issues, system failures, or human errors.
• Beveiligingsrisico: The risk of your assets being lost or stolen due to hacks, phishing-aanvallen, or other cyberdreigingen.
• Regelgevingsrisico: The risk of changes in laws or regulations that could affect the crypto-activa you hold or the services we provide, potentially leading to a waardeverlies or suspension of services.

C. Specifieke risico’s gerelateerd aan het type crypto-activum

Investing in crypto-activa involves various risks that differ depending on the type of asset. Below is an overview of common crypto-activum categories and their associated risks

1. Stablecoins (bijv. USDT, USDC)

• Onderliggende Reserves: Stablecoins like Tether (USDT) and USD Coin (USDC) are generally backed by fiat reserves. However, the stability of these reserves is often questioned, especially with limited transparency regarding audits. In cases of financial difficulties with the backing institutions or the issuer, redemption of tokens may become difficult or impossible.
• Algoritmisch Risico: Stablecoins using algorithms to maintain their peg can fail if the algorithm doesn’t respond effectively to market conditions, leading to waardeverlies.
• Terugbetalingsrisico: Some stablecoins may not guarantee redemption at par value, particularly during high volatility or operational disruptions.
• Regelgevend Landschap: Stablecoins are under increasing regulerend toezicht globally, especially as they could impact financial stability or be used for illegal activities like geldwas(sen|praktijken). Regulatory actions may alter the operations or value of stablecoins.
• Marktsentiment: Although stablecoins aim to maintain price stability, fluctuations in market sentiment or in the backing assets themselves could cause volatility.
• Concurrentie: With multiple stablecoins on the market, there’s a risk of shifting demand from one stablecoin to another, potentially impacting the value and liquidity of specific tokens.
• Liquiditeitsrisico’s: In times of market stress, liquidity may be affected, making it difficult to exchange stablecoins at their expected value.

2. Cryptocurrencies met utility- of platformspecifieke tokens (bijv. Ethereum, Polygon, Litecoin)

• Prijsvolatiliteit: These assets are subject to high prijsvolatiliteit. Significant fluctuations can occur based on adoption, technological developments, or regulatory changes, leading to both substantial gains and losses.
• Regelgevend Landschap: The regelgevend landschap for cryptocurrencies is continuously evolving. Regulatory actions may either hinder or promote adoption, impacting their price and demand.
• Technologie- en beveiligingsrisico’s: Cryptocurrencies rely on blockchaintechnologie, which can experience vulnerabilities such as bugs, hacks, or software errors, posing a risk to the asset’s value and security.
• Concurrentie: These platforms face competition from other blockchain technologies that may offer better scalability, security, or functionality, leading to reduced demand for specific tokens.
• Netwerkbetrouwbaarheid en schaalbaarheid: Platforms like Ethereum and Polygon are vulnerable to network congestion or scalability challenges, especially during periods of high demand. This can result in higher transaction fees, slower processing, and reduced gebruikerservaring.
• Adoptie en Toepassingen: The long-term value of cryptocurrencies like Ethereum depends on the widespread adoption of their use cases. Failure to gain traction in key markets or industries could negatively impact their value.
• Hard Forks: Aanzienlijke protocolwijzigingen (hard forks) kunnen leiden tot chain-splits en onzekerheid, waardoor het vertrouwen van investeerders mogelijk wordt geschaad en prijsdalingen kunnen optreden.

3. Betalings- en waardeopslag-munten (bijv. Bitcoin, Bitcoin Cash)

• Prijsvolatiliteit: Like other cryptocurrencies, Bitcoin (BTC) and Bitcoin Cash (BCH) are subject to rapid and significant price fluctuations that can result in considerable gains or losses.
• Regelgevend Landschap: The regelgevende behandeling of Bitcoin and other cryptocurrencies can vary significantly between countries, creating uncertainties that may influence price movements and liquidity.
• Technologierisico’s: Even though the underlying technology of Bitcoin is considered secure, issues like network forks or vulnerabilities in specific implementations can threaten its stability and security.
• Marktsentiment: Public perception, market sentiment, and media coverage significantly impact the price of these coins. Positive or negative news can lead to sharp price movements.
• Concurrentie: Bitcoin and Bitcoin Cash face competition from newer cryptocurrencies or alternative payment systems. Any shift in preference could reduce demand and impact their value.

4. Exchange-gebaseerde tokens of Decentralized Finance (DeFi)-tokens

Deze tokens zijn gekoppeld aan platformen die financiële diensten aanbieden zonder traditionele tussenpersonen.

• Prijsvolatiliteit: These tokens can be highly volatile and experience rapid price fluctuations. Its value is closely linked to the performance and reputation of the exchange platform.
• Regelgevend Toezicht: Regulatory actions against the exchange could directly impact the value and utility of the token.
• Afhankelijkheid van het Platform: The value of these tokens is heavily reliant on the exchange’s success. Any operational or regulatory issues facing the exchange could lead to a direct impact on the token’s price and liquidity.
• Tokenomics-wijzigingen: Unlike Bitcoin and Ethereum, the exchange has control over the token’s supply, and changes in its tokenomics (such as adjustments to issuance or distribution) could impact its value.
• Marktmanipulatie: These tokens may be subject to marktmanipulatie risks, including schemes like pump-and-dump, which can result in significant prijsvolatiliteit.
• Smart Contract-risico: DeFi-platforms operate on smart contracts, which may have vulnerabilities. Exploits can result in significant financial losses.
• Scams and Fraud: The DeFi-ecosysteem has seen instances of fraudulent schemes, including ‘rug pulls,’ where developers withdraw funds, leaving investors with worthless tokens.

5. Wrapped Tokens (bijv. Wrapped Bitcoin – WBTC)

Wrapped tokens vertegenwoordigen activa van de ene blockchain op de andere en vergemakkelijken interoperabiliteit. De bijbehorende risico’s zijn:

• Prijsvolatiliteit: Wrapped Bitcoin (WBTC) is subject to the prijsvolatiliteit of Bitcoin (BTC). Its value can fluctuate significantly, reflecting changes in Bitcoin’s price.
• Bewaarrisico’s: WBTC relies on third-party custodians to hold the underlying Bitcoin, introducing risks related to custodial mismanagement or security breaches.
• Tegenpartijrisico: Users must trust the custodian and the minting and burning processes. Any failure or fraud by these parties could result in financial loss.
• Interoperabiliteitsrisico’s: As WBTC operates across different blockchains (Bitcoin and Ethereum), technical issues or incompatibilities between these networks could disrupt the functioning of the token.
• Liquiditeitsrisico: The ability to redeem WBTC for Bitcoin may fluctuate based on liquidity in the market. This could result in difficulties buying or selling WBTC at the desired price.

6. Meme Coins

Meme coins zijn cryptocurrencies geïnspireerd door internetmemes of grappen. Ze brengen bijzondere risico’s met zich mee:

• Gebrek aan Nut: Often created as jokes, meme coins may lack practical use cases, affecting their long-term value.
• Hoge Volatiliteit: Prices can be extremely volatile, driven by social media trends and speculation rather than fundamentals.
• Liquiditeitsrisico: Meme coins may have low liquidity, making it difficult to buy or sell without impacting the market price.

7. Stablecoins uitgegeven door niet-geautoriseerde uitgevers

Under the Markets in Crypto-Activa Regulation (MiCA), issuers of e-geld-tokens (also known as Stablecoins) must obtain the appropriate authorisation before offering them to the public or seeking their admission to trading in the EU.

Stablecoins uitgegeven door niet-geautoriseerde entiteiten kunnen verhoogd risico met zich meebrengen, waaronder:

• verminderde transparantie met betrekking tot reserves en audits,
• zwakkere of onzekere terugbetalingsmechanismen,
• beperkte openbaarmakingen,
• verminderde liquiditeit of minder platformen die bereid zijn dergelijke stablecoins te ondersteunen, inclusief off-ramping.

Wij raden onze klanten aan to buy, sell and hold only stablecoins issued by authorised issuers. However, het is over het algemeen niet onwettig for EU customers to hold, buy or sell stablecoins issued by non-authorised entities. Nevertheless, customers should be aware that doing so may expose customers to significant risks due to the absence of MiCA-mandated protections, governance standards and oversight.

Banxa biedt niet publiekelijk aan of promoot unregulated stablecoins. Om te verifiëren of a stablecoin-uitgever is authorised, customers may consult the regularly updated ESMA MiCA registers.