SEC Reissues 'FOMO' Warning on Cryptocurrency Investments

Author: Tom Mitchelhill, Cointelegraph; Compiled by: Songxue, Golden Finance

The U.S. Securities and Exchange Commission (SEC) re-issued a warning about FOMO cryptocurrency investments - just trade on spot Bitcoin exchanges Fund approval comes days before it is expected.

In a Jan. 6 post from Alternative Tokens (NFT).

The “Don’t Miss the FOMO” blog post first appeared on January 23, 2021, when the cryptocurrency and stock bull market was in full swing, with Bitcoin, Ethereum, and many other altcoins in November 2021 A record high. Around March 2022, when the market cooled, another warning was issued.

Several users on social media have speculated that the report may indicate that the SEC will soon approve one or more spot Bitcoin ETFs, with a decision currently pending ahead of the January 10 deadline.

The warning mentions celebrities and athletes promoting crypto assets, urging investors not to make financial decisions simply because celebrities tout investment opportunities.

“You may see your favorite athletes, entertainers, or social media influencers promoting this type of investment opportunity. While it may be tempting, never base it solely on their recommendations Decide to invest."

Over the years, regulators have levied fines and penalties against celebrities for their role in promoting certain cryptocurrencies.

On October 3 last year, Kim Kardashian was accused of failing to disclose that she promoted a product called Ethereum Max ( EMAX) was paid $250,000 for fake tokens, and subsequently agreed to pay a settlement of $1.26 million to the SEC.

Additionally, the report warned investors of the potential volatility that assets that move significantly due to "trends and influencers" could bring, saying that while they may be attractive at first, But as markets continue to move forward without them, losses tend to accumulate quickly.

"How would you feel if you lost 20%, 30%, or even 50% of your investment in one day?" the report asked readers.

The crypto industry is currently waiting with bated breath for the Bitcoin ETF space. Eric Balchunas, senior analyst at Bloomberg ETFs, predicts that most applicants will be approved within a week, or at least those who meet regulators' requirements by Dec. 29.