Show Me The Money: Real MONEY

Early in July 2022, the Singapore-based crypto platform Vauld suspended its withdrawals, trading and deposits. Co-founded by Darshan Bathija, the suspension of operations by Vauld, not only brought the focus on the future of #cryptocurrency , but also got the #finfluencers, or personal finance content #creators , under the lens raising questions about them promoting the brand and the high-risk category.The story prompted many Indian media houses to report on the issue and the headlines says it all:

Suspension Of Vauld’s Operations Puts Spotlight On Credibility Of Finfluencers: Inc42 Media
‘Finfluencers’ face the heat after crypto firm Vauld shuts shop: VCCircle
Vauld crisis turns up heat on finfluencers pitching Crypto: Live Mint

Finfluencers face new reality: ET

Are crypto investors losing faith in finfluencers: Storyboard18

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 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.

#publicrelations #PR #influencermarketing

Image courtesy: Reuter

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