Risks Are Real
Mockery or no, the SEC’s concerns are not entirely unwarranted. The FTC reported Friday that fake “investment opportunities” accounted for roughly $575 million in crypto-losses reported to the agency. A common theme among the victims is “limited crypto understanding and experience.” The SEC says its “Investomania” campaign is intended to convince the public to do their own “due diligence” around investing. “With the growing access to markets, it’s as important as ever for investors to take time to educate themselves,” SEC’s Gensler said. But that’s also an oft-repeated message in memestock circles, whose members are encouraged (usually in a disclaimery-like way) to “do your own research.” It’s also easy to see how novice investors become seduced by the idea of turning higher profits using leveraged trades. Those who are unaccustomed to managing their own risk, while trading volatile stocks, can easily wind up buried in debt.
