Two years after the epidemic, investment fraud cases have emerged one after another in the market. Xiao Li (pseudonym) is such an unfortunate victim. Xiao Li spent two years carefully looking for reliable investment opportunities. As soon as he found the opportunity, he fell into a scam. Fortunately, his lawyer friend helped him handle the subsequent legal proceedings. In the process, we saw several key issues.
1. Information asymmetry: the trap of poor information
Information asymmetry is one of the important reasons why Xiao Li was deceived. Mainland residents often face information blockades and are unable to access overseas websites. This makes them vulnerable to non-professional and even false investment information, especially on platforms such as WeChat and Xiaohongshu. **Case**: Xiao Li saw a "high return and low risk" overseas investment project on WeChat, claiming that he could make quick profits by just investing money. Since he could not access overseas websites for verification and did not understand English, Xiao Li mistakenly believed the information and lost all his money.
2. Investment Awakening: The Evolution of Technology and Behavior
Investment is not just a simple action, it requires a process from technology to "awakening". We can no longer rely on past successful experiences to guide future investment behavior. The world is changing rapidly, and business models and investment methods are also undergoing dramatic changes. **Example**: In the past, investing in real estate may have been a safe choice, but nowadays, this field has changed dramatically. Modern investment is no longer limited to the entry of hard assets or the traditional investment, financing and construction model, but is increasingly transforming into "Property Tech". For ordinary people who do not have the knowledge to integrate technology and investment, such a change will undoubtedly increase the risk of investment. Don't mean that being conservative can avoid risks. In fact, just the opposite is true. The biggest risk is the lack of knowledge growth mindset amongst investors.
3. The shadow of a liar: Be wary of traps, but you are more likely to fall.
What's worse is that there are too many scammers in the market. They take advantage of information asymmetry and investors' knowledge blind spots to set various traps. Victims who have been defrauded all have psychological problems in investing. They often suffer from a balance between greed and risk. The less trustworthy they are, the more likely they are to be deceived. True story: A friend once saw an introduction to a "listed company super project" on a seemingly professional investment forum. This project claims to be able to combine the latest blockchain technology value, but in fact, it is just a well-disguised scam. Because this friend lacked in-depth understanding of the relevant technologies and markets, and did not believe in government regulations, he ultimately suffered even greater losses.
In this era of information explosion, investors are facing unprecedented challenges. Information asymmetry and technological changes greatly increase investment risks. We need to be more vigilant and improve our "information analysis", "digital literacy" and technical knowledge in order to remain invincible in this unpredictable market. The most important thing is, don’t trust investment information from unknown sources, check with multiple parties, and seek professional advice to avoid becoming the next victim.
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