The United States Securities and Exchange Commission reissued their warning at the 2017 bull run amidst the massive crypto massacre. Some fundamental flaws from four years ago remain apparently still present.
The US Securities and Exchange Commission’s Office of Investor Education and Advocacy Twitter account, which deals with training and information about investing, echoed the SEC warning from 2017.
“Investing in something is never a good idea because someone famous says it’s a good investment.”
Warning, US citizens; It was made to prevent celebrities who support assets and products from receiving investment advice.
This warning was first published on November 1, 2017. The SEC acknowledged that shamelessly promoting various “investment” options has unfortunately become commonplace for internet celebrities:
“Celebrities from movie stars to professional athletes; It can promote a wide variety of products and services – sometimes even including investment opportunities – on television, radio, and social media. (…) Making an investment decision is never a good idea because a celebrity says a product or service is a good investment. ”
At the time, the commission made clear that the non-disclosure of the fee for these advertisements was a violation of federal securities laws and could be considered fraudulent. The SEC’s other report in July 2017 wrote:
“Any celebrity or other individual who promotes a virtual token or coin as a security must disclose the nature, scope and amount of the price received in exchange for the promotion.”
Earlier, during the 2017 ICO exuberance, many celebrities were accused of promoting investment fraud. Namely, famous boxer Floyd Mayweather and music producer DJ Khaled were punished for promoting the Stox ICO scam.
During the ongoing rally, crypto novices still follow the investment advice of “influencers”. For example, TikTok celebrities triggered a DOGE pump in August 2020.
Tesla’s CEO, Elon Musk, also attracted many people to Bitcoin (BTC) and Dogecoin (DOGE) with his tweets.