The SEC reiterates its warnings against impulsive investment in cryptocurrencies, especially during periods of intense FOMO.
Say ‘NO GO to FOMO’ says SEC
As the crypto industry eagerly awaits decisions on Bitcoin spot ETFs, with a deadline set for January 10th, the U.S. Securities and Exchange Commission (SEC) has once again cautioned investors against the dangers of FOMO-driven investments. In a recent publication on X, the SEC’s Office of Investor Education reiterated the risks associated with digital assets, including meme stocks, cryptocurrencies, and non-fungible tokens (NFTs).
Volatility and influencers in the regulator’s crosshairs
In addition to highlighting general risks, the SEC specifically warned against investments based on celebrity and athlete endorsements. Over the years, the commission has sanctioned various individuals for their role in promoting certain cryptocurrencies without proper disclosure.
The SEC continues to focus on the potential volatility of assets that can experience significant fluctuations due to trends and influencers. It has urged investors to consider the impact of substantial losses in a single day, highlighting the risks of blindly following market movements without a deep understanding.
