UK authorities have warned against cryptocurrencies promoted by influencers like Kim Kardashian

UK watchdog issues warning about risks of buying cryptocurrency influential people from social media, such as kim kardashian west, and noted that People with little knowledge of risk bought digital currencies for fear of missing out on this opportunity.

In an alert that appears to be aimed at young investors, the Financial Conduct Authority (FCA) warned of the risks of buying cryptocurrencies, especially new ones, under “promotion”. token endorsed by celebrities who may be fake.

“The hype around them creates a strong fear of missing out on some consumers who may have little knowledge of their risks,” FCA President Charles Randall said in a speech prepared for the Cambridge International Symposium on Economic Crimes on Monday. can.” “There is no shortage of stories of people who lost their savings when they were lured into the cryptocurrency bubble with the illusion of quick money.sometimes after listening to them influential people favorite, who Are ready to betray the trust of their followers in exchange for commission“.

Randall indicated that a surprisingly large percentage of consumers who Buy speculative cryptocurrencies mistakenly believe they are regulated. He emphasized that consumers do not have financial security if they invest in cryptocurrencies and will not have access to a compensation scheme for their financial services if they lose their money.

“If they buy them, they must be prepared to lose all their money”Randall noted, reiterating a previous FCA alert.

In his speech, Randall gave the example of an American television star. kardashian west, who was criticized for posting on her Instagram stories earlier this year Paid advertising for the cryptocurrency called Ethereum Max, in which he asked his 250 million followers: “Are you interested in crypto????”. Although the post qualified as hype, Randall noted that Kardashian Didn’t mention that unknown developers created the token just a month ago.

“Of course, I can’t believe it token Specifically, this is a scam,” Randall said. “But, he influential people from social networks Getting paid regularly by scammers to help them promote and launch new token It is based on speculation only. Some influential people They promote currencies that simply become non-existent”.