THERE’S a new cryptocurrency to keep an eye on and that’s Alchemy Pay.
In the past 24 hours, Alchemy Pay is down 3% to $0.1002.
Before you invest, make sure you are aware of the risks when it comes to Alchemy Pay and cryptocurrencies in general.
The cryptocurrency space can be filled with complexity, so you need to understand what you’re investing in.
And most importantly – you could lose a lot of money quickly if you’re not careful.
That’s because of the extreme volatility that takes place in the crypto space.
For instance, Alchemy Pay exploded to $0.20 earlier this month, according to Coinbase, but its valuation has now been cut in half since that point.
Moreover, there’s scant regulation for crypto firms – meaning you’ll likely be without protection something goes wrong.
What is Alchemy Pay?
The cryptocurrency was co-founded by former Google employees Nikil Viswanathan and Joe Lau.
Trading for Alchemy Pay first began in September 2020.
According to Alchemy Pay, it is the “world’s first” hybrid crypto and fiat payment gateway.
Through Alchemy Pay, users are allowed to receive payments in the local currency of their choice, regardless of how it is sent.
5 risks of crypto investments
BELOW we round up five 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.
Customers are also rewarded with ACH tokens for each crypto transaction, according to the company.
An ACH is an Ethereum token that powers Alchemy Pay’s platform.
Alchemy Pay recently announced it will soon launch “virtual crypto-linked cards,” which aim to speed up cryptocurrency payments.
The new feature can be connected to the digital wallets of Google Pay and PayPal and supports more than 40 cryptocurrencies.
It will be accepted by e-commerce platforms of Amazon, eBay, as well as millions of other merchants that take payments through Visa and Mastercard.
Virtual Cards is expected to fully launch by the end of the year or early 2022.
Currently, Alchemy Pay operates in 65 countries and regions and has 300 fiat and crypto payment channels.
Can Alchemy Pay reach $1?
Since the cryptocurrency first began trading nearly 12 months ago, it has skyrocketed by more than 250%, according to Coinbase.
To hit $1 in a few months, Alchemy Pay would have to rise by around 10 times or 1,000%.
By the end of the year, Alchemy Pay is expected to hit just $0.10536, according to Coinarbitragebot.
By 2024, Alchemy Pay is forecast to reach $0.51321, representing a nearly 400% increase from its current levels.
Meanwhile, Pick A Crypto is a little more bullish and thinks the price of Alchemy Pay can range somewhere between $0.20 and $0.50.
Then, between 2022 and 2025, Pick A Crypto thinks it can range from $0.80 to $2.50.
What do the experts say?
Shaun Heng, vice president of growth and operations at CoinMarketCap told The Sun that it’s challenging to assess the risk of many crypto projects like Alchemy Pay.
And while he isn’t a fan of Alchemy Pay’s crypto-linked cards, he did tout one its partners Binance, which is the largest crypto exchange by trading volume globally.
Heng said: “The partnership with Binance is most definitely a good sign of validation for the project.”
On the other hand, Nate Tsang, the Founder & CEO of WallStreetZen said Alchemy Pay’s crypto-linked cards could be game-changing.
However, he added that these could be subject to volatility with fellow cryptocurrencies for the rest of the year.
He said: “The rollout of the Alchemy Pay card isn’t expected until late 2021, more likely 2022, meaning until then it’s subject to the same volatility a lot of cryptocurrencies face.”