Finance Monthly. F i nanc i a l Innov a t i on & F i nTech 35 pump-and-dump scheme is the FaZe Clan and Save the Kids crypto fiasco. Several members of the organisation promoted a new altcoin: Save the Kids. They generated interest in the cryptocurrency through a series of Tweets, videos and even announced themselves as brand ambassadors on their websites. The idea was that a percentage of the proceeds would go to a Children’s charity. People bought into the coin, and shortly after, it plummeted by a whopping 60%. The members of FaZe Clan that were involved in the scheme pumped interest into Save the Kids and then pulled the rug from investors, causing the price to crash. $SQUID Game Coin Another notable example is the $SQUID Game coin, named after the popular Netflix show. Although the coin had nothing to do with the show, it still managed to create a lot of buzz due to the popularity of the show. Influencers were quick to jump on the bandwagon and started promoting the coin. The coin soared from just over a cent to $2,800 in a short period. However, after reaching this peak, it fell back to only a few cents a few minutes later. Final Thoughts It is essential to be realistic about the fact that most influencers are not financial experts and may not fully understand the risks involved in investing in crypto. In addition, influencers are paid to promote particular projects, which means that they may not be impartial. Working with reputable brands that are transparent about their fees and have a good track record can help to mitigate some of the risks associated with crypto investment. For businesses looking to use influencer marketing to promote their project, it is essential to vet the influencers carefully and make sure they are a good fit for your project. Celebrity endorsements don’t mean that an investment product is right for you or even, frankly, that it’s legitimate. Even if a celebrity endorsement is genuine, each investment has its risks. In response to the Kim Kardashian case, SEC Chairman Gary Gensler said it was a “reminder” that celebrity endorsement did not necessarily make a product worth investing in. Gary Gensler SEC Chairman
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