SECURITIES AND EXCHANGE COMMISSION PRODUCE VIDEO TO WARN PUBLIC FROM RISKY CRYPTO INVESTMENT
The SEC probably thought it was doing the right thing by producing videos to warn investors selling risky investments.
In one of the short videos streamed to its YouTube account on May 31, we see a funny TV drama. The two nominees play a certain type of luck wheel. The show is called "Investomania."
Candidates have several options ranging from "Stocks on Margin," "Meme Stocks," "Guaranteed Returns," "Stock Tips from Your Uncle," "Celebrity Letters," "FOMO" (Fear of Missing), "Tulip Bulbs," " Timing markets, "and" Crypto to the Moon. "
The broadcaster announces to one of the two contestants, Brad, that it is time for him to play.
"Brad, it's your investment," said the host.
"I'll take the meme stocks. Invest," Brad replied. He then pressed the sparrow.
Then a large "X" appears on the screen indicating that the answer is incorrect. At that moment, we see a large sum of money, which must have belonged to Brad, disappears from the trap door on the floor, and spreads over Brad's face. The audience sighs.
After "Eshu", the host turns to another contestant, Julie.
"Your investment Julie?" he asks.
"I'll do some research first," Julie replied, as she touched her smartphone.
"You played well, Julie. You played well," said the host.
This sarcasm has not been well received on social media. Indeed, most retailers have invested in so-called meme stocks, such as GameStop (GME) - Find GameStop Corp. Class A Report with AMC Entertainment (AMC) - Discover AMC Entertainment Holdings, Inc. Class A report, last year. lost sharply after the shares of the two companies declined amid uncertainty about their future.
Meme shares have been acquired by popular investors and young retailers on the Reddit social media platform during the violence.
AMC shares, for example, have lost more than 54% of their value since January.
'Crying Out' in Our Face '
The euphoria surrounding cryptocurrencies in 2021 has also declined. Bitcoin, the king of cryptocurrensets, and Ether, the second-largest digital currency in terms of market value, fell from their November high prices. The crypto market has lost more than $ 1.7 trillion since November, according to data company CoinGecko.
"It is very disappointing to see the SEC denigrate investors in meme stocks as if they had to do it recklessly - esp when @SECGov allowed so much trading to happen in black pools," commented former SEC Branch Manager Lisa Braganca on Twitter. What about a video about black pools @GaryGensler? Or better yet, trade openly. "
"Videos like these make you wonder what exactly are the priorities for @ SECGov .... hmmmmm." another user commented.
"I'm not surprised! They yelled at our faces bro Sec won't protect store investors, it's very sad ," said one user.
"It's very sad when @SecGov literally teases people and promises to protect them. I would love to hear from @ BarbaraRoper1 to see what they are doing to protect us from PFOF abuse," wrote one Twitter user.
Underneath the YouTube video, the SEC has sent a message that sarcasm is for educational purposes.
"The SEC's 'Investomania' public service campaign uses the concept of a game show to teach investors how to play that investing is not a game and that they should be honest in their investment decisions."
"Most importantly - do not play games for your financial future. You can learn how to avoid game-related catastrophes and investments, and check your information on our Investomania inquiries at http://Investor.gov/investomania," the agency concluded.