The European Supervisory Authorities (ESAs) for securities (ESMA), banking (EBA), and insurance and pensions (EIOPA) jointly warned consumers that crypto-assets are highly risky and speculative. This warning comes in the context of growing consumer activity and interest in crypto-assets and the aggressive promotion of those assets and related products to the public, including through social media. The truth is that we currently experience a crypto scam tsunami attacking retail investors worldwide.In their warning, the ESAs highlight that crypto assets are not suited for most retail consumers as an investment or as a means of payment or exchange. In particular, consumers:
- face the very real possibility of losing all their invested money if they buy these assets;
- should be alert to the risks of misleading advertisements, including via social media and influencers; and
- should be particularly wary of promised fast or high returns, especially those that look too good to be true.