Online stock brokerage firm Zerodha’s founder and CEO Nithin Kamath is known for often sharing interesting insights and advise on social media platform twitter. In his recent tweet, he shed a light on the trend of celebrities triggering investors to invest in super risky asset classes without talking about the risks.
“Watching famous personalities with huge fan followings trying to trigger their fans or retail investors to invest in super risky asset classes without talking about the risks, or caring about the risk profile of those who follow them is quite disgusting,” Kamath tweeted.
Relating the same to the crypto hype, Kamath added, “Thanks to Crypto, it’s been a case of “never meet your heroes,” with so many people I admired for peddling crypto, NFTs, etc. as safe & guaranteed. Nothing against crypto, it would have been the same if stocks or even AAA-rated debt was peddled as being safe & guaranteed.”
NFTs are digital assets that represent a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate and even digital sneakers. Many celebrities have come up with their own NFT collections in the past year.
Famed for volatility, cryptocurrencies have caught attention as an asset class in the last few years and have gone mainstream on the back of their sharp rally despite uncertainties around regulations in many countries including India.
Cryptocurrency prices went on another roller coaster last year, surging, plunging and then cycling again. El Salvador became the first country to make Bitcoin legal tender this year whereas the first exchange-traded fund (ETF) tied to Bitcoin futures also began to trade.
The recent swings in cryptocurrencies come amid a volatile period for financial markets. Spiking inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.
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