Three words crypto executives love to misuse

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Twitter cryptocurrency users are happy to help and are quick to offer advice on life, food, entrepreneurship and other tips; but never financial.

It’s a popular belief that adding three simple words to the end of everything will absolve you of legal repercussions – despite digital asset lawyers warning that adding “no financial advice” per se is “rather pointless”. .

FTX founder Sam Bankman-Fried, Binance chief Changpeng Zhao (CZ), and crypto investor Anthony Pompliano all apparently missed the memo that the Securities and Exchange Commission (SEC) sued celebrities like Kim Kardashian and Floyd Mayweather for promoting crypto, despite including the disclaimer.

Red flags aside, sometimes I feel like I could use more direction in my life. That’s why I turned to the bright minds of crypto Twitter for advice – but certainly not on my finances.

The FTX Team

The infamous founder of FTX, Sam Bankman-Fried, has tried many times to offer his perspective on crypto… which is definitely not advice.

“Hi guys,” he wrote on Twitter two years ago. “We may not be able to say this forever and I feel like we didn’t really get it out of our system and we’ll regret it later, so…to be clear…. this is alt szn. The message was followed by a response from Bankman-Fried, saying he was not giving financial advice.

“Alts can disappear at any time. So could we all. Life is fleeting,” he existentially warned.

NO FINANCIAL ADVICE.

NO ALTERNATE TIPS.

ALTS COULD DISAPPEAR AT ANY TIME.

SO WE ALL CAN. LIFE IS PASSING.

— SBF (@SBF_FTX) September 30, 2020

Read more: The Many Lies of Sam Bankman-Fried

Bankman-Fried also made sure to update people frequently when he purchased his own FTX (FTT) token – although again, this was never meant to be advice on how you should to act.

The former head of Bankman-Fried crypto trading firm Alameda Research, Sam Trabucco, is believed to be going very fast on the water right now. In the past, he has taken opportunities to share what is definitely not advice, such as when he warned his followers against other crypto traders.

Increasingly, crypto trading types are expressing delta views on, for example, the S&P 500.

My advice: be *super* skeptical of virtually anyone who claims to have an edge on the S&P 500 delta, very few of the top traders in the world believe they have an edge by doing so.

— Sam Trabucco (@AlamedaTrabucco) October 14, 2022

“More and more types of crypto traders are expressing delta views on, for example, the S&P 500. My advice: be very skeptical of virtually anyone who claims to have a delta-trading edge on the S&P 500, very few of the best traders in the world think they have the edge doing so.

If you can find anything financial in this advice, then you are smarter than me.

Binance’s Changpeng Zhao

CZ has a ton of information on various things and wants to share it with you, but don’t let it sway your actions because it’s definitely not advice. Some vague and ambitious tweets from CZ include when he told people “Don’t be late”. This, of course, is just an appeal to the value of punctuality.

However, other rival phrases worthy of “live, laugh, love” seem a bit more financial. Just this weekend, CZ wrote, “In bull markets, embrace risk management. Do FOMO. Don’t put all your investments in one coin.

In bull markets, embrace risk management.

Do FOMO. Don’t put all your investments in one coin.

(No financial advice)

— CZ Binance (@cz_binance) January 21, 2023

Read more: The deep ties between Binance, Bitzlato and darknet market Hydra

I’m grateful that CZ told me how to change my position in different markets, but I’m still struggling to identify what type of market it is. Luckily CZ was there to save me again when he said, “Maximum greed happens at the top. Maximum fear occurs at the bottom.

CZ also uses its platform to drill into popular narratives of crypto assets, pointing out that “#bitcoin is such a bad store of value. It continues to increase, with some fluctuations sometimes.

Remember:

Maximum greed occurs at the top. Maximum fear occurs at the bottom.

Not financial advice. Just state a fact.

— CZ Binance (@cz_binance) December 17, 2022 BitBoy and Anthony Pompliano have fun

Other crypto executives are also keen to ensure that their subscribers are protected from the cruel vagaries of this market, which I suspect is why Tether CTO Paolo Ardoino has raised awareness in followers that “#bitcoin price increases with low volumes. Be careful.”

Ben Armstrong, who calls himself BitBoy and likes to threaten legal action, also likes to offer advice that isn’t financial – or is it financial insight but not advice? Either way, he wants to make sure you “DON’T MISS THE OPPORTUNITY BECAUSE YOU’RE WAITING FOR A NUMBER”.

“Average dollar cost if you have to,” he continued. “Not taking profits at the top and not accumulating crypto near the bottom are the two things you will kick yourself for more than anything else.”

Armstrong also wants you to know that “the government thinks you’re stupid. This is why our financial system is archaic. They think people can’t make decisions with their money without being told what to do by someone with a degree in finance.

The government thinks you’re stupid. This is why our financial system is archaic.

They think people can’t make decisions with their money without being told what to do by someone with a degree in finance.

“Not financial advice” to appease the overlords.

— Ben Armstrong (@Bitboy_Crypto) February 2, 2022

Read more: BitBoys messy video rant really encapsulates crypto

Crypto investor Anthony Pompliano went out of his way to share his thoughts on bitcoin with investors, tweeting: “Bitcoin’s Last 12 Months: Price: +1000% Sharpe: 5.18 Correlation at 90 days: 0.21 Bitcoin is an asymmetric, uncorrelated asset that reduces your overall portfolio risk.

“Not financial advice,” he added, “but the real risk is having no exposure.”

Real financial advice?

Ran Neuner, managing director of fund manager Onchain Capital and host of Crypto Banter, took a rather more risky approach. In wise nuggets like “Buy Bitcoin”, he explicitly states that he provides his followers with financial advice. Although really, he said in a separate post, he doesn’t care what you buy, as long as you trade that fiat for crypto.

“Just buy,” he tweeted in February 2021. “No matter what…just buy. It’s financial advice. »

When the mood hits, however, Neuner certainly seems to care about the crypto you buy. “Buy $AIOZ now, this is financial advice,” he wrote in April 2021. Curiously, a month before selling AIOZ, his company saw the token as an exciting opportunity to reduce exposure.

According to crypto sleuth ZachXBT, Crypto Banter proceeded to dump over $20,000 from AIOZ less than a day after Neuner’s financial advice to buy the token. Within 24 hours, Crypto Banter dropped again, this time down to $31,200.

Turns out, just admitting you give financial advice doesn’t mean you’re very good at it. Since Neuner sold AIOZ to his followers, its value has dropped by more than 98%.

Bold quotes are our priority. For more informed news, follow us on Twitter and Google News or listen to our investigative podcast Innovated: Blockchain City.

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