Trias also echoes Woods’ concerns. Validating investment ideas based on social media hype is problematic, he says, because investment decisions should be highly tailored to you and your needs — and that’s just not possible on social media. Your cryptocurrency will absolutely go to the moon All the rocket emoji in the world couldn’t give a valueless cryptocurrency long-term staying power, no matter who’s pumping it. Clayton Moore, founder and CEO at crypto-payment system NetCents Technology, said by email that while engaging platforms like TikTok have been instrumental in spreading the word about cryptocurrencies, they’ve also become breeding grounds for fraud. “You’ve got to watch out for the crypto influencer who’s just in it for a quick buck,” he said. “The classic pump and dump.” Moore said it’s common for crypto influencers to accept payment in exchange for making wild claims about a coin, only to abandon their support for it once the check clears. “If it is too good to be true, 99% of the time, it is,” Moore said.
The article The 5 Worst Investment Tips on TikTok was originally published on NerdWallet on July 29, 2021.
CHRIS DAVIS is an editor at NerdWallet.
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