More and more people are learning about cryptocurrency and want to make money on it in every possible way. This also applies to show business stars who do not want to lose popularity. So Kim Kardashian West on her Instagram account put up an advertisement (of course paid) for an unknown Ethereum Max token. Not all of her subscribers liked this idea, but the head of the FCA, Charles Randall, was most annoyed.
In his statement, the ad is aimed at those who are new to cryptocurrency investing, that is, those who are not familiar with the risks. The FCA lurks such pseudo-investors from buying cryptocurrencies, especially those advertised by the stars.
"This kind of hype created by the stars is designed only to nudge inexperienced investors to buy this asset. Such advertising inspires them that this opportunity will no longer exist and they will miss a real chance to make a fortune. But then everything turns upside down: investors lose money, and the creators of such tokens are getting richer."
Randall says that most of the failed investors are confident in the regulation of such tokens by special supervisory authorities, which means there is no deception in this area. But in reality, everything is different: no one can compensate for losses from deposits, because no authority has control over the field of cryptocurrencies.
"If you intend to purchase these tokens, get ready to part with the money,"
says the head of FCA.
Just, as an example, Randall cited the actions of Kim Kardashian, who advertised the token. She hinted to her subscribers to join this sphere. But more experienced crypto investors immediately suspected something was wrong, because the token was created only a month ago, and its developers are not known to anyone.
The head of the FCA is confident that it is necessary to expand the monitoring of online advertising of cryptocurrency assets. This mainly applies to social networks and popular personalities who are taking advantage of their status. urge their own fans to give funds to scammers. That's right, but in this case, you need to develop a really effective mechanism that will allow you to protect people's funds from such fraudulent actions.
“We need to find a balance between regulatory activities to protect citizens and encouraging new ideas in this area,”
said the head of the FCA.
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