The United Kingdom’s Financial Conduct Authority (FCA) has flagged off a new £11 million ($15.2 million) campaign to educate new investors about the dangers associated with investing in cryptocurrencies and other acclaimed high-risk investment products.
The newly launched campaign by the FCA will run for five years with Olympic BMX gold champion Charlotte Worthington named as a partner.
In a press release announcing the campaign, the regulator highlighted, among other things, that a growing number of young investors are largely driven by hype around their investments and the desire to compete with their peers.
The FCA reportedly surveyed a demography of investors aged 18-40 and realised that 74% of those who invest in cryptocurrencies, forex and other high-risk investments feel a sense of competitiveness while investing. At the same time 68% of investors likened their investments to gambling and not something they would hold for the long haul.
Although 60% of the surveyed audience said that they prefer long-term investments with stable returns, just 28% plan to hold their most recent investment for more than a year, and an even lower number (8%) say they’re willing to hold for up to five years.
Another trend observed by the FCA is that the majority of investors are driven by social media hype. Up to 58% of surveyed investors say that their most recent investment was as a result of social media, news reports, or other people encouraging them to invest.
Lastly, the FCA noted that while a majority of those surveyed claimed to be investment-savvy, as much as 69% of crypto investors believed that their investments are regulated by the UK watchdog.
The new campaign by the FCA coincides with renewed public interest in cryptocurrencies, which has pushed the market back to its previous highs. On Wednesday, Bitcoin set a new all-time high of £48,700 ($66,900) as bullish investors eye even more gains before the end of the year.
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