Buyer beware. Even if your favorite movie star is sold out | Jobi Cool

New York
CNN Business

The best advice for investors has always been: buyer beware.

This is especially important in the unregulated wild west of cryptocurrency. The collapse of FTX, billed as the entry-level way to buy, sell and hold digital currencies, is a glaring warning sign for everyday investors caught up in crypto’s get-rich-quick aura.

The stars of this year’s Super Bowl ad-palooza were crypto hawking celebrities. Some are investors, others are just paid to promote it.

As Matt Damon proclaimed last year while promoting cryptocurrency exchange, investors should consider the tagline “Fortune favors the brave.” A $1,000 investment in Bitcoin would be worth less than $300 today.

Investments rise and fall. It makes the market. But the fact is, crypto investors are on a flying trapeze without a net.

Matt Damon Fortune favors Brave Crypto ad screenshot


What happened at FTX was basically a run on the bank. But unlike the highly regulated world of banking, crypto investors’ deposits are not insured. Congress as well as banking and securities regulators are in the early days of regulating this trillion-dollar corner of the market.

“I think a lot of regulation is coming,” economist Paul Krugman told CNN. “If the whole enterprise doesn’t make sense, it might as well not be highly regulated. It might eventually disappear.”

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