Uberrich people have touted the speculative investment, making others feel like fools if they don’t get in on the game. Tesla mogul Elon Musk has been a champion of cryptocurrency, although he backed off bitcoin mining recently, citing environmental concerns.
Despite being highly volatile, the price of cryptocurrencies has surged to record levels.
Finally, cryptocurrency enthusiasts have a great command over social media platforms, enabling them to relentlessly plug the investment, which is pushing up prices. Scammers know that many people suffer from “FOMO,” or the fear of missing out. This is the kryptonite for unsophisticated investors.
“This trend is really striking,” said Emma Fletcher, a program analyst with the FTC’s Bureau of Consumer Protection. “It’s pretty alarming and concerning. So we definitely want to bring attention to this issue so that people can take steps to make sure that this doesn’t happen to them.”