the FCA chief also warned consumers regarding crypto assets promoted by social media influencers, who often target younger investors with a powerful fear of missing out “There is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick riches, sometimes after listening to their favourite influencers, ready to betray their fans’ trust for a fee,” Randell noted.
He cited US TV star Kim Kardashian West as an example, following the paid promotion of a cryptocurrency token called Ethereum Max posted by the social media influencer on her Instagram stories. The FCA chairman noted that although the post was marked as an advertisement, Kardashian failed to disclose that the digital currency in question was only created a month earlier by unknown developers.
“Of course, I can’t say whether this particular token is a scam,” Randell added. “But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”
