[KEUNGB and MirrorHK Tokens] The cryptocurrency that is fascinating the city

Fintech
Cryptocurrencies
Blockchain
Risks

It is not surprising how popular the band named MIRROR has become when I see the three ladies in my family singing their new song in the kitchen together. Last week, my daughter who is in primary school and my retired mother asked me, “What is Keung To token?” Is that a gold coin or a currency?

They are probably referring to the two new cryptocurrencies named after pop singer Keung To and the group MIRROR, i.e., the KEUNGB token and MirrorHK token.

These cryptocurrencies which are associated with pop idols have drawn much attention from their fans and the public. However, before we get caught up in the hype, we should find out what is a cryptocurrency first and learn about its risks.

Author: Mr Chin17/05/2021

What is cryptocurrency?

Cryptocurrency is a type of digital token. While its name has the word “currency”, it does not physically exist. Instead, it is a series of complicated and encrypted passwords which can transferred electronically, and is operated under blockchain technology to verify and record transactions.

The risks of cryptocurrency

In Hong Kong, cryptocurrencies/digital tokens are considered as virtual commodities or virtual assets. They are not legal tenders, and are not backed by the government, banks, issuers or tangible assets. They are not accepted as a means of payment or recognised as a digital currency.

However, anyone can create cryptocurrencies. For example, the KEUNGB and MirrorHK tokens were created by a fan rather than the singer or the group. Some netizens may purchase the tokens for collecting or speculation purposes. Since a cryptocurrency is not backed by any physical asset, its value could be highly volatile. Investing in cryptocurrencies is highly speculative and may involve significant risks. Investors are advised to take caution and understand the risks, instead of following the herd to speculate in cryptocurrencies.