The U.S. Securities and Exchange Commission (SEC) has reissued a warning regarding FOMO crypto investments, days before the Spot Bitcoin (BTC) exchange-traded fund is scheduled to be approved.
January 6th post to
The post Say no go to FOMO appeared first on Blog post The warning was issued on January 23, 2021, amid a crypto and stock bull market that saw Bitcoin, Ether (ETH), and many other altcoins hit all-time highs by November 2021. It was done. The warning was issued again around March 2022.
#SECInvestingResolution 5: Say “NO GO” to FOMO (fear of missing out). Just because someone else may purchase a particular investment does not mean it is the right opportunity for you. Learn more about how to find what's right for you and your investment goals. https://t.co/fixDWoNFrF pic.twitter.com/SGf1z6xmhL
— SEC Investor Ed (@SEC_Investor_Ed) January 6, 2024
Multiple users on social media theorized The report could indicate that the SEC will soon approve one or more spot Bitcoin ETFs, and is currently awaiting a decision by the January 10 deadline.
The warning notes that celebrities and athletes promote crypto assets and urges investors not to make financial decisions just because a popular figure is promoting an investment opportunity. Ta.
“You may see your favorite athletes, celebrities, or social media influencers promoting these types of investment opportunities. Although appealing, never invest based solely on their recommendation. Please don't decide.”
For years, regulators have imposed fines and fines on celebrities involved in promoting certain cryptocurrencies.
On October 3 of last year, Kim Kardashian was accused of failing to disclose that she was paid $250,000 to promote a fake token called Ethereum Max (EMAX) to her 360 million followers on Instagram. He was indicted and agreed to pay a $1.26 million settlement to the SEC.
Related: BlackRock to cut 3% workforce before Bitcoin ETF deadline: report
Additionally, the report warns investors of the potential volatility associated with assets that fluctuate widely due to “trends and influencers,” stating that while assets may be initially attractive, losses can occur as the market progresses without them. He said they often accumulate quickly.
“How would you feel if you lost 20, 30 or even 50 percent of your investment in one day?” the report asked readers.
The cryptocurrency industry is currently watching the Bitcoin ETF space with bated breath. Eric Balchunas, senior analyst at Bloomberg ETF, expects most applicants to be approved this week, or at least those who meet regulatory requirements by Dec. 29. ing.
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