After Vauld, finfluencers learn their posts have consequences. What now?

After Vauld, finfluencers learn their posts have consequences. What now?

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Soumya Gupta

10 reads
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Pratik Bhakta

149 reads
author-image

Soumya Gupta

10 reads
author-image

Pratik Bhakta

149 reads

Social-media celebs earned megabucks shilling for the fintech and crypto segments they knew little about. Now, as the bear market causes widespread pain and regulators wake up, creators and companies are rushing to change how they advertise. Marketing budgets are set to shrink

July 13, 2022

10 MINS READ

In a stinging take, Viraj Sheth of influencer marketing agency Monk Entertainment sums up the problem of social-media stars dispensing paid-for financial advice in videos with little understanding of the subject.

“Every Tom, Dick, and Harry, with or without a CFA, is giving out information on how to invest on Instagram Reels,” the co-founder and CEO says, referring to the qualification required to be certified financial analysts, professionals without a strong selfie game but with a firm grasp of all things money. 

“Sharing hacks on how to get a cheap bucket of popcorn in a movie theatre is one thing. But now, you are giving me a list of five mid-cap funds. That doesn’t work,” Sheth adds.

It almost worked. For nearly two years, ‘finfluencer’, content creators who drum up interest in investment products (stocks, crypto), fintech apps or platforms, was among the most lucrative social-media gigs. A pandemic-time bull market and younger retail investors’ eagerness to get in on the action drove the space to peak virality. 

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