American football player Tom Brady, model Gisele Bündchen and basketball players Stephen Curry and Shaquille O’Neal appear at the Investor lawsuit against cryptocurrency exchange FTX, which filed for bankruptcy leaving more than 1 million customers and creditors lining up to get their money back. It is a class action lawsuit that raises as its main argument that these and other celebrities supported the cryptocurrency platform, despite the fact that it was a “fraudulent scheme fabricated to take advantage of unsophisticated investors across the country, who used apps to make investments”, the lawsuit states.
Although the process takes place in Florida, United States, this is not a distant reality in Brazil, where the Securities and Exchange Commission (CVM) continues to study creating rules that limit the performance of celebrities and digital influencers who work with both stocks and cryptocurrencies. The newly sworn president of the municipality, João Pedro Barroso Nascimento, even argued that in 2022 he would at least regulate the actions of digital influencers, but he did not.
“From a practical point of view, there is still nothing in Brazil that limits the activity of influencers and celebrities in token disclosure campaigns.”, explains Jonathan Mazon, a partner lawyer at Junqueira Ie Advogados, who works with capital markets and corporate governance. According to him, the conversation, for the moment, has moved towards the creation of rules applicable to influencers who speak with equity investors.
In this sense, three steps have already been taken: 1. CVM and ANBIMA created an agreement to monitor the activities of digital influencers who act with investment recommendations in social networks; 2. CVM issued a Circular Letter with guidelines on the subject; and 3. CVM included studies on this topic in its regulatory agenda for 2022.
Numbers and commitment
The regulatory body’s concern is justified if we look closely at both the numbers and the growth of followers on social networks of digital influencers in the investment segment.
A survey conducted from January 1 to June 30, 2022 by Anbima in partnership with the Brazilian Institute for Research and Data Analysis (IBPAD), based on 188.1 thousand posts on YouTube, Twitter, Instagram and Facebook, noted that there are 255 active influencers, 8% less than the second edition of the report, carried out between February 6 and December 31, 2021. As a result, the study identified 31,300 posts per month15% less than the previous edition.
Although the number of active influencers and the volume of publications have decreased, people’s interest in the subject has increased. The number of profile followers increased 3%, to 94.1 million, and engagement grew 19%, to 1,300 average interactions, measured by likes, comments, and shares.
“National and international data, as well as statements from the market and regulatory bodies show how much relevance this topic has gained in Brazil and in the worldsays Jonathan Mazon. According to him, influencers satisfy a demand for investment interest and information accessible to anyone who does not work in the financial market. Even so, it is always recommended to have the support of experts who know the rules and laws of each country, as a way to avoid future headaches, both for the influencer and for the follower.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.