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U.S. regulators have examined the public statements made by crypto-related firms and discovered that 70% of these communications mislead users by fostering unrealistic expectations regarding digital assets.
The Financial Industry Regulatory Authority (FINRA) indicated that approximately 70% of messages from crypto companies directed at the public breach communication regulations. Specifically, these messages include false, exaggerated, promissory, unwarranted, and misleading assertions.
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FINRA initiated an evaluation of the public communications from crypto firms in November 2022, following the downfall of the crypto exchange FTX. More than 500 messages in various formats concerning crypto assets released by representatives of the Web3 industry were scrutinized.
Ira Gluck, Senior Director at FINRA, mentioned during the Unscripted podcast that the potential damage from misleading communications is increasing alongside the growth of the crypto market‘s capitalization and the public’s rising interest in digital assets. He emphasized that crypto companies should accurately convey the characteristics of digital assets and the associated risks in their public statements.
Last year, FINRA carried out an extensive survey and found that 55% of U.S. citizens aged 18 and younger selected cryptocurrency as their initial financial investment.
Сообщение Two-Thirds of Сrypto Companies’ Messages Create False Expectations появились сначала на CoinsPaid Media.
