In 2021, something unexpected happened in the world of investing. A bunch of regular people on Reddit came together and sent GameStop’s stock price soaring. It wasn’t because the company was doing great—it was simply because people on social media started talking about it. This moment changed how we think about investing. It showed that markets aren’t just moved by experts or company news anymore, but by influencers and online buzz.

Today, more and more people are turning to social media platforms like TikTok, Reddit, YouTube, and Twitter for financial advice. These creators—sometimes called “finfluencers”—talk about stocks, cryptocurrencies, AI investments, and trading strategies. They’re not always professionals, but their content can go viral fast and influence real market moves.

For example, after the GameStop craze, other stocks like AMC, Nokia, and BlackBerry also saw big price jumps. These weren’t caused by better business performance but by people hyping them up online. The same thing happened with cryptocurrencies like Bitcoin and Ethereum. When enough people pay attention to something online at the same time, they can push prices up or down just through sheer hype.

This new way of investing has made it easier for younger people to get involved in the markets. Social media has opened doors that used to be closed to those without financial backgrounds. A simple video or post can now introduce someone to investing for the first time.

But there’s a downside. Some of the advice shared online is overly optimistic or even misleading. It’s easy for prices to rise based on hype, not real value. And when excitement fades, those prices can crash just as fast—leaving investors with big losses.

A major concern is that many finfluencers aren’t licensed financial advisers. They often share personal stories or opinions rather than expert guidance. Some even promote risky products like leveraged trades without clearly explaining the dangers involved. This is especially risky for young investors who may trust these influencers more than they should.

Regulators around the world have started to take this seriously. In Australia, financial authorities have warned influencers that they can’t give financial advice without a license. In 2025, several Australian finfluencers were officially warned for promoting risky investments without proper qualifications.

This isn’t just happening in Australia. Financial regulators in the UK, Canada, Europe, and other countries are now working together to crack down on unlicensed advice online. Some influencers have faced arrests, warnings, and content takedowns. The message is clear: promoting financial products without proper approval can have serious consequences.

So what does this mean for you?

If you’re following someone online for money tips, be careful. Always ask yourself: Is this person qualified? Are they trying to sell me something? What are the risks if I follow their advice?

Social media can be a great place to learn about investing ideas. But when it comes to making big financial decisions, it’s smarter to talk to licensed professionals who understand the risks and rewards.

Investing today moves fast—faster than ever before. But with speed comes risk. Stay informed, stay cautious, and always double-check your sources before making a move with your money.