The United States Securities and Exchange Commission has reissued its warning about fear of missing out (FOMO) driven investing, urging investors to exercise caution when investing.
The warning comes just days before the commission is set to announce its decision on pending spot Bitcoin ETFs.
The warning about fear of missing out (FOMO) investing was issued by the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy. The advisory was the fifth in a and warned investors about the risks associated with digital assets such as meme coins, meme stocks, non-fungible tokens (NFTs), and cryptocurrencies.
“Digital assets include cryptocurrencies, coins, and tokens like those offered in initial coin offerings (ICOs). Meme stocks may be based on internet popularity and social views instead of a traditional stock value, such as a company’s performance. And, let’s not forget about NFTs (non-fungible tokens).”
In the latest post, SEC director Lori Schock advised investors to refrain from succumbing to increasing interest in digital assets. Schock also advised investors not to base their investment decisions on factors such as celebrity recommendations and recommendations by social media influencers or entertainers. The director also emphasized the risks posed by market swings, volatility, and more.
“You may see your favorite athlete, entertainer or social media influencer promoting these kinds of investment opportunities. Although it’s tempting, never decide to invest based solely on their recommendation.”
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