According to Bitcoin.com, Following the recent case with John McAfee, social media influencers got under fire for allegedly aiding pump and dump schemes.
Tell me more!
It’s no secret that unexperienced investors tend to trust the newly emerged crypto influencers in terms of buying and selling digital currencies. However, it becomes more and more difficult to differentiate the real insightful advice for a paid promotion, which, in case of the fast-moving crypto world, can cause a pump and dump scenario.
So what’s with McAfee?
On Wednesday, a Twitter account of a high-profile social media crypto influencers was full of tweets shilling various coins. The account was allegedly hacked, but not before causing a series of flash rate pumps.
What can we learn from it
- More power comes with more responsibility. Crypto influencers should understand the impact they do on rates and perhaps to place a disclaimer if the post was paid for.
- It’s especially relevant for altcoins’ segment where a number of investors try to make money on now.
- And, as usual, crypto investors should evaluate all potential risks – including a risk of hacking an influencer’s account