Beware of “FOMO,” the US Securities and Exchange Commission (SEC) suddenly warns.
FOMO or “Fear of Missing Out” is the fear of missing out on something. It is the feeling that people can experience when they are afraid of missing the opportunity to invest. This can lead to hasty and risky decisions.
This warning comes as the SEC may be close to making a decision on Bitcoin (BTC). exchange traded fund (ETF) in the USA.
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Regulator SEC warns of FOMO in crypto
“Say NO to FOMO (fear of missing out). Just because others may make a particular investment does not mean it is the right opportunity for you,” the SEC said.
#SECInvestingResolution 5: Say “NO GO to FOMO” (fear of missing out). Just because others might buy a particular investment doesn't mean it's the right opportunity for you. Learn more about what's right for you and your investment goals: pic.twitter.com/SGf1z6xmhL
— SEC Investor Ed (@SEC_Investor_Ed) January 6, 2024
In a Twitter post, the SEC's Office of Investor Education wrote about the risks associated with digital assets, including cryptocurrencies. Memecoins and NFTs.
This is not the first time the SEC has issued this warning. The first time that the SEC “Say NO to FOMO” was published in a blog article in January 2021. At that time, the new bull market was just beginning.
In the warning, the SEC also pays attention to celebrities promoting crypto. The regulator urges not to make financial decisions blindly based on recommendations from actors, athletes, influencers or other well-known personalities.
“You may see your favorite athlete, entertainer or social media influencer promoting these types of investment opportunities. Although it may be tempting, never decide to invest based on their recommendation alone,” the SEC said.
The SEC has frequently issued fines to celebrities for this type of crypto advertising in recent years. Celebrities like Kim Kardashian, Lindsay Lohan, Jake Paul, Floyd Mayweather, Dj Khaled, Akon, Steven Seagal and more.
In most cases, they had not disclosed that they were secretly being paid to promote a particular cryptocurrency. Some of these were even fraudulent cryptocoins such as Ethereum Max (EMAX).
The timing of the warning is surprising given the upcoming Bitcoin ETF
The timing of this warning is particularly noteworthy. The SEC is expected to announce its decision on the first spot Bitcoin exchange fund in the US in the coming days.
The crypto community therefore sees the warning as a kind of early confirmation that the SEC will approve a spot Bitcoin ETF. It is expected that we will receive our answer as to whether this is indeed the case before January 10th.
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