Founder and CEO of online stock broker Zerodha Nithin Kamath is known for sharing interesting insights and providing advice on the social media platform Twitter. In his recent tweet, he highlighted the trend of celebrities pushing investors to invest in highly risky asset classes without talking about the risks.
“Watching Celebrities with massive fan followings trying to get their fans or retail investors to invest in highly risky asset classes without talking about the risks, or caring about the risk profile of those who follow them, is disgusting,” Kamath wrote on Twitter.
Connecting to the crypto hype, Kamath added, “Thanks to Crypto, it’s been a ‘Never Meet Your Heroes’ situation with a lot of people I like promoting cryptocurrencies, NFTs, etc. as safe and secure. Nothing against cryptocurrency, it would have been the same if it had been done. Promote stocks or even AAA-rated debt as safe and secured.”
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 created their own NFT kits in the past year.
Known for its volatility, cryptocurrencies have gained attention as an asset class in the past few years and have become dominant on the back of their sharp rise despite uncertainty over regulations in many countries including India.
Cryptocurrency prices went down another path last year, jumping, dropping, and then cycling again. El Salvador became the first country to legally tender for bitcoin this year, while the first exchange-traded fund (ETF) linked to bitcoin futures has also begun trading.
The recent volatility in cryptocurrency comes amid a volatile period for the financial markets. Rising inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that has lifted a wide range of assets.
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