Can I Trust an Investment Scheme Endorsed by Celebrities?

Traders often feel overwhelmed by the variety of investment products offered by brokers. In order to get their products noticed by more traders, financial companies may invite celebrities or influencers to endorse their investment programs. Are the financial products endorsed by celebrities always reliable?

Celebrities and influencers have a greater appeal in the crowd, and their words and actions have the potential to influence the thoughts and behaviors of the public. However, traders should be cautious when faced with celebrity recommendations involving financial investments, as the products endorsed by celebrities are not always reliable.

The legitimacy of an investment program or financial product does not depend on the endorsement by celebrities, but on whether the product has been approved by the local financial regulator and whether the company offering the product is authorized. Traders shouldn't give their money directly into an unknown investment scheme out of trust in a celebrity, or else the safety of their money can hardly be guaranteed.

Moreover, even if these financial services and products are authorized, it does not mean that traders can avoid all investment risks. In a financial market full of unknowns, it is possible that people lose all their money at any time.

The "cracking down" of celebrity endorsement also tells all traders the hard truth - celebrity endorsement of investment products does not equal reliability. The cryptocurrency trading platform FTX, which once ranked fourth in the world in terms of daily trading volume, was recommended by NBA stars and celebrities. However, after the exchange collapsed, these celebrities were sued by FTX customers. Victims who invested out of trust in the celebrities are struggling to claim compensation.

JPEX, a virtual asset trading platform that was once very popular in Hong Kong, was also exposed to fraud. Before the police launched their investigation, there were many Hong Kong celebrities who had cooperated with JPEX, such as Cheung Chi Lam, Ch'ng Se Min, Maria Cordero.

Regarding the regulation of financial advertisements, each region and country has different regulations, and some regions even explicitly prohibit celebrities from endorsing financial investment companies.

What's more dangerous is that many fraudulent investment platforms often steal celebrities' images to attract more potential victims.

In short, celebrity endorsement does not guarantee the safety of your investment. Be cautious of investment products recommended by anyone - even if the recommender is a celebrity!