- Australia’s financial regulator issued a warning to young investors about seeking crypto investment advice from AI tools and social media influencers.
- A survey revealed that 23% of Gen Z investors own cryptocurrency and usually seek advice from digital sources.
The Australian Securities and Investments Commission issued a warning about the growing influence of AI tools and financial influencers on investment decisions among young investors. They published the results of a survey on financial practices among people aged 18 to 28 in Australia. The survey revealed that 23 percent of Gen Z investors currently own cryptocurrency in Australia.
The survey also revealed that sixty-three percent of people use social media platforms to access financial information. Around eighteen percent of people use artificial intelligence platforms to look for investment guidance or financial planning information online. Approximately 30% of survey participants reported using YouTube to access financial information online.
The researchers also found that over half of the people in the survey expressed trust in financial information that people share online through social media. Around fifty-two percent of people said that they trust “finfluencers” who post information about financial investments online. The results of the survey also revealed that 64% of people trust the financial information that artificial intelligence tools provide.
Crypto Investing Trends Among Young Investors
The study also sought to uncover the extent to which social media exposure impacts cryptocurrency investments. Among Gen Z crypto investors, approximately 29% of investors claimed to trade cryptocurrencies based on information received from social media. Regulators have been concerned that some social media personalities may offer unrealistic information concerning potential investments in the cryptocurrency market.
The social media regulator explained that algorithm-driven platforms may not offer adequate financial education to their audience. Authorities have, in the past, issued warning notices to several social media personalities who have been accused of promoting high-risk financial products to their audience. They have been encouraging young investors to scrutinize financial information received and to verify information from professional sources. Authorities have also been encouraging young investors to note that cryptocurrency investments come with different risks compared to traditional financial products like stocks. Authorities have been keeping a close eye on social media trends concerning investments. Digital platforms have been influencing how young investors seek financial information.
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