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Earlier the global market saw the Luna and TerraUSD digital currencies collapsing and shaking the whole cryptocurrency market with an estimated loss of $300 billion in value. This also sunk the price of #Bitcoin. A report on Cryptopolitan.com said: 2 QAnon influencers have been blamed for the latest crypto-scams
The rise of finfluencers can be attributed to the covid pandemic. Not just India, but across the world, with most people ‘locked’ in their homes, looking for new ways of generating money and securing their future in a volatile market. This period also saw the big change with digital payments making inroads in all household and the financial reigns being shifted to the tech-savvy younger generation. This led to spike in demand for financial information and knowledge and the role of experts with digital presence became the key guiding the young generation through their financial planning. A March 2021 Barclays UK Smart Investor global study showed many #genzers looking to “get rich quick” by investing for the short-term. Nearly half (49%) of those aged 18-24 planned to only invest money for 2-5 years. Over a fifth (21%) were investing to ‘take advantage of the market’ and 16% planned to ‘play the markets’ to make fast profits.
This younger generation took lessons from the #covid crisis and began securing their financial future themselves. #SocialMedia proved a boon for many who accessed informative digital content. Finfluencers emerged as a key category of creators, gaining immensely from the rapid rise of startups in the fintech and crypto ecosystem. They picked up investing habits that were traditionally viewed as unfavourable. The rise of finfluencers, or digital content creators, with a large base on social media following and with strong knowledge of financé or the share market attracted them to invest more and take on the management of their personal finances.
But with the turmoil in the cryptomarket, the influencers are facing increasing scrutiny and some have released statements apologising to viewers who may have been affected.