According to CoinDesk's interviews and observations of all parties in the crypto market, as well as comments from legal experts, a new trend is currently emerging in the crypto market: influencers (Key Opinion Leaders, KOLs) are not only investors, but also promoters of projects. This trend has raised concerns about transparency and market impact.
KOL investors promote crypto projects to global crypto users through social media and then support these projects with their own funds. While this practice may have benefits in attracting users and buyers, its opacity has caused some controversy. Many KOLs do not disclose their financial relationship with the project, which may violate consumer protection laws. Although the KOL economy continues to grow, it has also raised questions about its influence and transparency. Investors and observers in the crypto market are concerned that this opaque investment model may harm the interests of retail investors. Although the KOL economy may bring market impetus, it is crucial to ensure that investors understand the financial relationship between KOLs and projects.