The Test to identify a Risky Crypto Investment is to note that not everything that says they are crypto is, just verify-check all their claims on the blockchain and if it is not verifiable on-chain then its not crypto it is potentially risky says -
Robert Sharratt- CEO, Fluid FinanceAccording to him, What Celsius was doing was not Crypto, it was fractional banking but worse because fractional banking is regulated; Celsius and many others escape regulation simply because they claim to be Crypto-Blockchains thus making them riskier than banks.
He continues with even more bold Statements, you can see the full interview in the video
https://www.youtube.com/watch?v=w7DOy335ft4 [nofollow]Let me attempt a TL;DW Summary below.
1. Everything verifiable on-chain should not be regulated however everything off-chain should be regulated
2. USDC and USDT are potentially the biggest threat to systemic risk for crypto
3. They are not verifiable on-chain, yes they publish and say most is in cash
4. But the crypto way to do it is to simply hash everything on-chain
5. Or expose their treasury end-points on-chain for you to verify instead and this eliminates the risk
6. If you cannot verify everything a crypto claims on-chain then its probably risky
This is no Financial Advice Please Do Your Own Research.