Ethereum's co-founder Gavin Wood has advised cryptocurrency investors to be more aware of what is backing their holdings after a crypto market rout that wiped more than $800 billion off their value.
"I would hope that people pay more attention to what is belying the currency name when they get involved in a community, ecosystem, economy," Wood
Cryptocurrencies have been swept up in a sell-off this year in risk assets, which has picked up steam as data showed US inflation running hot
The downturn in the crypto market which started in April has wiped billions of dollars in market value within a month.
"The internet has no real concept of legality, because legality is something that is determined by sovereign nations," Wood said in an interview to Reuters.
"The technology cannot prevent people from making mistakes but can help those who want to understand better the facts of the world, what they're buying," said Wood.
Cryptocurrencies have fallen sharply in recent weeks. Bitcoin has lost more than 20% of its price so far in May
Following a 17% drop in April, highlighting the risks faced by holders of the highly volatile assets.