AUDIO is up by a whopping 109% over the past 24 hours – but what exactly is it?
We explain everything you need to know about the cryptocurrency, including its price and how risky it is to invest in.
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A word of warning though: buying cryptocurrencies as well as stocks and shares is a very risky business.
Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the cash.
Cryptocurrencies are highly volatile, so your cash can go down as well as up in the blink of an eye – you can lose all the money you put in.
Plus, some products and cryptocurrency services are very complex. You should only invest in things you understand.
There is also no guarantee that you’ll be able to convert cryptoassests back into cash, as it may depend on the demand and supply in the market.
Plus, fees and charges may be higher than with regulated investment products.
What is Audio?
Audius is a crypto-powered music streaming platform.
It’s owned and controlled by token holders – and tokens are called Audio.
According to Audius, over 5.3million people have used the platform this month.
Audio has been listed on CoinMarketCap since October 2020, and has rocketed in value over the last 24 hours following a deal with Chinese-owned social media giant TikTok.
It means that users will be able to share their music from Audius into the TikTok app, according to a Rolling Stone interview with Audius co-founder and chief product offier Forrest Browning.
Artists including Disclosure, deadmau5 and Skrillex reportedly use the platform.
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
Is the price going up?
After its deal with TikTok, the price of Audio has soared by 109% over the past 24 hours at the time of writing, according to CoinMarketCap.
It’s price now stands at $3.55, up from $1.88.
However, it’s not a record-breaking high for the coin – in March, Audio spiked to $4.18, up from $2.50 just a day before as the platform’s profile began to build.
However, it plummeted soon after, and despite a rise in May, has fallen since until the end of July.
Financial adviser deVere chief executive Nigel Green said: “Audio’s link with TikTok is driving prices and this can be expected to continue in the short-term as more and more of the social media platform’s one billion users are introduced into the world of cryptocurrencies.”
How risky is Audio?
Although Audius’ profile could boom after its partnership with TikTok, experts have warned that Brits planning to invest in any new cryptocurrency should remain cautious.
AJ Bell head of investment analysis Laith Khalaf said: “Cryptocurrencies are hugely volatile assets, and that goes in spades for new smaller entries onto the market.
“While the prices of these tokens may rocket in a short space of time, that’s just one side of the coin, and they can fall just as sharply.
“The golden rule is not to buy any crypto with money you’re not prepared to lose.”
Hargreaves Lansdown personal finance analyst Sarah Coles said that Audius’ deal with TikTok may lead TikTok users to “branch out into the currency”.
But she added you should be “incredibly cautious” of investing.
“Crypto speculators are constantly looking for the ‘next big thing’, which they hope will follow the kind of trajectory Bitcoin did in the early days, and it seems that an increasing number of these gamblers are taking a bet on Audio,” she said.
“It is, however, a gamble based on pure speculation about a digital coin with no reliable valuation.
“Traders are hoping to cash in on future price rises, but nobody knows the coins that will gain traction and those that will sink without a trace.
“Even if they want to ride the current wave, predicting the point at which demand subsides and prices fall is nigh-on impossible, so there’s a huge risk that gamblers will get their fingers burned.”
Investors should be wary they risk losing all of their money if they put cash in Bitcoin and other cryptocurrencies.
It comes after a ban on some crypto-related investment products in the UK.
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