• Tue. Nov 29th, 2022

Kim Kardashian’s crypto settlement a reminder to check money tips online

ByChad J. Johnson

Oct 3, 2022

Kim Kardashian’s crypto settlement could be a lesson for all of us.

The reality TV superstar has agreed to pay $1.26 million to settle charges with the Securities and Exchange Commission for failing to disclose that she was paid to post an Instagram post about the asset cryptography from EthereumMax, the agency announced on Monday.

“Clearly the SEC is making an example with Kim Kardashian, who is perhaps the biggest influencer in the world,” said Douglas Boneparth, certified financial planner and president of Bone Fide Wealth in New York.

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Here’s a look at other stories impacting the financial advisor industry.

Celebrity pitches may not be suitable for all investors

“This case reminds us that when celebrities or influencers endorse investment opportunities, including crypto asset securities, it does not mean that those investment products are suitable for all investors,” said Gary Gensler. , Chairman of the SEC, in a statement.

“We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives.”

Gensler too posted a video warning investors not to make investment decisions based entirely on the advice of a celebrity or influencer.

“No matter where we hear this advice, we need to remember that what works for one person may not be the right advice for you,” said Ted Rossman, senior industry analyst at Bankrate.

“You generally want to do your due diligence”

Social Media Influencers Have Paid Thousands of Dollars to Endorse Potentially Fraudulent Cryptocurrency Projects

As the pandemic spawned a new generation of investors, Instagram, YouTube and TikTok have become among the most popular sources of financial information, tips and advice, especially among Gen Z.

“Over the past few years we’ve seen a big jump in the number of platforms that allow people to access investments, which I could say is a good thing,” Boneparth said.

“It used to be a game of rich people, but now anyone can buy stocks or cryptos, but it can also lead to a dangerous situation if you don’t have knowledge,” he added. . “It really is a buyer beware.”

It used to be a rich person’s game, but now anyone can buy stocks or cryptos – but it can also lead to a dangerous situation if you don’t have knowledge.

Douglas Boneparth

president of Bone Fide Wealth