{"id":7438,"date":"2021-09-08T16:23:42","date_gmt":"2021-09-08T16:23:42","guid":{"rendered":"https:\/\/www.mouthymoney.co.uk\/?p=7438"},"modified":"2025-03-03T10:28:50","modified_gmt":"2025-03-03T10:28:50","slug":"should-you-trust-financial-advice-from-tiktok-influencers","status":"publish","type":"post","link":"https:\/\/www.mouthymoney.co.uk\/pensions\/should-you-trust-financial-advice-from-tiktok-influencers\/","title":{"rendered":"Should you trust financial \u2018advice\u2019 from TikTok influencers?"},"content":{"rendered":"\n
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So-called social media influencers have come under fire for promoting untested financial hacks and little-known cryptocurrencies on social media platforms.<\/strong><\/p>\n\n\n\n

The financial regulator the Financial Conduct Authority (FCA) recently criticised Kim Kardashian for presenting an untested cryptocurrency on her Instagram followed by 250 million people.<\/p>\n\n\n\n

Should you follow financial advice on social media?<\/strong> <\/h3>\n\n\n\n

Kardashian advertised virtual token \u2018Ethereum Max\u2019 in June in a story on Instagram account.<\/p>\n\n\n\n

Charles Randell, FCA chairman, said: \u201cThere is no shortage of stories of people who have lost savings by being lured into the cryptobubble with delusions of quick riches.\u201d<\/p>\n\n\n\n

\u201cAround 2.3 million Britons<\/a> currently hold this type of token, out of which 14% also use credit to purchase them, \u201cthereby increasing the exposure to loss.\u201d<\/p>\n\n\n\n

\u201cVery vulnerable people may be misled into investing in crypto assets, and suffer what can be devastating losses,\u201d said John Young, a legal partner at law firm Kingsley Napley.<\/p>\n\n\n\n

Trusting financial advice on social media, or borrowing money to invest in crypto assets is \u201ca recipe for disaster,\u201d he added.<\/p>\n\n\n\n

Assuming that a price rise in Ethereum Max in June was triggered by Kardashian\u2019s post, Young believes people that invested in the token may have lost money.<\/p>\n\n\n\n

\u201cA significant amount of money, and not only that, but the volumes are so thin, that they might not even be able to sell their coins at all if they wanted to,\u201d he said.<\/p>\n\n\n\n

Is \u2018Finance TikTok\u2019 all a scam?<\/strong> <\/h3>\n\n\n\n

Kim Kardashian is not the only one to promote financial tips. The social media platform TikTok is well-known for its #stockTok hacks. But how much can we learn from a video of only three minutes?<\/p>\n\n\n\n

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@herfirst100k<\/a>

Have you heard this myth before? #creditcard<\/a> #adulting101<\/a> #EatFreshRefresh<\/a> #investingtips<\/a> #moneytips<\/a> #moneyhacks<\/a> #moneytoks<\/a> #creditcarddebt<\/a><\/p> \u266c Darling – Trees and Lucy<\/a> <\/section> <\/blockquote>