– The US Securities and Exchange Commission (SEC) has sanctioned investment firm VanEck with a hefty $1.75 million fine.
– The penalty stems from an undisclosed detail during the launch of the firm’s Social Sentiment ETF in March 2021.
– The ETF was marketed by a prominent social media personality whose fee was connected to the fund’s growth – the more the fund grew, the bigger the payday for this influencer.
– VanEck apparently failed to fully disclose this juicy detail during their ETF’s launch, leading to the SEC’s punitive action.
– The strategy for boosting the ETF’s success involved using ‘positive insights’ from social media, with an added flavor of this popular and contentious online personality.

VanEck’s Social Media Sins Fetch $1.75M Fine

Influencer Marketing Strategy Backfires, As SEC Imposes Hefty Fine

The High Cost of ‘Positive Insights’ From Social Media

Just when we thought cryptos couldn’t be juicier, here comes VanEck, using the modern-age silver bullet of influencer marketing – but forgetting the golden rule of full disclosure. The strategy of employing an influencer to market their product is not a problem. The problem here is the influencer’s fee being tied to the fund’s growth, creating a bit of a conflict of interest. It’s like having Gordon Ramsay recommend a restaurant just because he gets a cut from the profits. Now, that’s not a very ‘positive insight,’ is it? VanEck has learned its lesson the hard way, and we hope this serves as a reminder to everyone that in the crypto-verse, the SEC is watching. #VanEckFine #InfluencerMarketingBackfires #CryptoRegulationOriginal article: https://cointelegraph.com/news/vaneck-admits-violation-agrees-to-sec-fine-in-etf-marketing