Study: 90% of Influencers' Financial Advice on Social Media is Ineffective
New research from Queen Mary University of London confirms widespread suspicions: nearly 90% of financial advice from social media influencers is ineffective or low-quality, often lacking proper sources, disclaimers, or genuine expertise. The study analyzed nearly 2,500 influencers on Instagram, TikTok, and YouTube and surveyed over 4,200 UK adults. It found that while two in five UK adults use social media for financial advice, only about one in ten consult a licensed professional.
Complementing this, a Chainalysis report on 2024 crypto tokens revealed that 74,037 newly launched tokens displayed patterns of "pump-and-dump" schemes, with 94% of these cases involving the wallet that created the liquidity pool also conducting the asset dump. The median suspicious scheme lasted less than a day.
In a coordinated April 2026 operation, the UK's Financial Conduct Authority (FCA) and 17 global regulators targeted this issue directly, flagging 120 influencer accounts for removal. These accounts were responsible for 1,267 illegal financial promotions that reached at least 2.3 million UK accounts, with 66% of the ads linked to entities already on the FCA's warning list.
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