FCA warns of crypto projects promoted by stars like Kim Kardashian

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FCA warns of crypto projects promoted by stars like Kim Kardashian

The Financial Conduct Authority (FCA) has put out a statement warning against crypto projects promoted by world stars like Kim Kardashian or Floyd Mayweather. This statement seems to be aimed especially at young investors, who, according to the FCA, are much more sensitive to these kinds of promotions.

The FCA warns

In the official statement, it says that it is not crazy that the hype around a relevant project can create a certain feeling of ‘fear of missing out’ (FOMO), especially in people who have little understanding of the risks involved, but that it is still important to be extremely careful about this.

Charles Randell, the president of the FCA, told all this in a speech he gave to the Cambridge International Symposium on Economic Crime. Among other things, he also said, “There is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick wealth, sometimes after listening to their favorite influencers, who are willing to betray their fans for a fee.”

With this, he hits the nail on the head. Too many influencers go for the quick money and, for a nice sum of money, promote a crypto project that they know has no real substance behind it. They often invest in it themselves, so they can enjoy the pump and then sell.

So be careful with this! Never just invest in a project you know nothing about. Especially not just because an influencer, like Kim Kardashian, promotes it. Always do your own research.

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