FOMO Warnings in Crypto: SEC Reiterates Warnings as Spot Bitcoin ETFs Raise Hopes

Crypto News – Days before the expected approval of spot Bitcoin exchange-traded funds, the US Securities and Exchange Commission (SEC) has again issued a warning regarding FOMO crypto investment.

FOMO Warnings in Crypto: SEC Reiterates Warnings as Spot Bitcoin ETFs Raise Hopes

The SEC’s Office of Investor Education cautioned retail investors once more about the dangers of digital assets, such as meme stocks, cryptocurrencies, and nonfungible tokens (NFTs), in a post published on X on January 6.

In the midst of a booming bull market for equities and cryptocurrency that saw Bitcoin, Ether, and many other altcoins hit new all-time highs by November 2021, the “Say no go to FOMO” blog article made its debut on January 23, 2021. When the markets were cooling in March 2022, the warning was issued once more.

Cryptocurrencies Recommended by Celebrities Should Not Be Trusted

The caution advised investors not to make financial decisions based only on the endorsement of cryptocurrency assets by well-known celebrities or athletes.

You may see your favorite athlete, entertainer, or social media influencer promoting these kinds of investment opportunities. Although it’s tempting, never decide to invest based solely on their recommendation.

The warning

Celebrities who have assisted in the promotion of specific cryptocurrencies have been hit with fines and penalties by the regulator over the years. Kim Kardashian was charged with concealing the fact that she received $250,000 in exchange for promoting a fraudulent cryptocurrency named Ethereum Max (EMAX) to her 360 million Instagram followers. On October 3, 2023, she consented to pay a $1.26 million settlement to the SEC.