In the current era of allegged ‘pump and dump’ and other schemes on the digital assets market it is important to understand the unique impact that media, particularly social media, has on investor perceptions, attitudes and ultimately decisions to trade and invest.
Our colleagues at Cointelligence have published an informative analysis of this issue. Of particular importance is the idea of influencers, who have taken over some mainstream marketing efforts for brands across the world, including crypto and blockchain projects as well. Even heads of major international banks and government officials have the ability to influence investor sentiment and, in turn, market price actions.
The same can be said for major news networks, both on television and online who have created their own dedicated segments and programs to focus specifically on digital assets and Blockchain.
In this environment it is important to stay diligent with information checking and follow-up. Often times, significant news events or announcements pertaining to digital assets can put traders in losing positions, when seemingly all other analysis points to profit.