What are the risks of digital assets and bridged (wrapped) assets?
Purchasing or holding digital assets involves significant risks, including (but not limited to) market volatility, cybercrimes, regulatory changes, and technological challenges. It is important to conduct thorough research and understand the potential risks involved before purchasing/holding digital assets. Past performance is not indicative of future results. Digital assets are not insured by any government agency and may result in loss of principal.
“Bridged” or “wrapped” assets (e.g. WBTC) involve additional risks that should be considered before purchasing/holding. These assets are typically created by wrapping or bridging a native digital asset from one blockchain network to another, which may result in technical challenges, potential delays, and higher fees. Additionally, there is a risk of loss or theft due to the reliance on third-party custodians to manage the wrapped or bridged assets. Therefore, it is crucial to conduct thorough research and understand the potential risks involved before purchasing/holding bridged or wrapped assets.
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