The Rise Of Financial Influencers: Gen Zs Risky Path To Wealth

A new breed of financial influencers is gaining traction, particularly among younger investors. These so-called “hustle bros” showcase a lifestyle of luxury, often flaunting private jets, Lamborghinis, and the promise of financial freedom through trading courses that cost upwards of £150 a month. However, there are growing concerns that something doesn’t add up in their world.

One such influencer is Lucas Dimos, known online as the Blockchain Boy. At just 23, Dimos has amassed over half a million followers on TikTok, where he discusses cryptocurrencies and forecasts which tokens will rise or fall. Despite his popularity, he readily admits that the financial influencer sphere is a murky one. “Financial influencers have a bad reputation, and it’s often deserved,” he concedes. “You can tell a lot about someone’s moral character by how they operate.”

The content produced by these influencers often veers into the absurd. Take, for example, 29-year-old Luke Desmaris, who in one video, walks stiffly to the balcony of a Dubai flat while boasting, “If Pablo Escobar could make billions without computers or AI, how are you still struggling to make 10K a month?” His video, set to a remix of The Godfather theme, epitomises the audacious and often cringeworthy nature of this new financial advice genre.

Desmaris and others like him represent a growing group of young self-proclaimed financial gurus who claim to have made their fortunes through trading. They now sell this knowledge to their followers, often at a steep price. Their message is simple: the system is rigged against you, and the only way to get ahead is to break free from conventional paths. The choice, they claim, is stark—either remain in a dead-end job or gamble on a life of luxury and success, much like they have.

The appeal of these influencers is undeniable, especially among younger generations. “Seventy per cent of Gen Z believe influencers provide better financial advice than traditional advisers,” says Alex Barkley, a banking strategist at Lancero Capital Partners. “These influencers operate in a world that’s ethically and legally grey, which makes them appealing to young investors navigating a challenging economic landscape.”

However, the risks in the world of foreign exchange, crypto, and other speculative markets are high. Influencers like Dimos stress that it’s up to individual investors to decide whether to follow their advice. “If you blindly follow someone on the internet, I have no sympathy for you,” Dimos asserts. “I’m just showing people what I’m doing—it’s their choice what to do next.”

Alex King, founder of the personal finance site Generation Money, has closely studied the “work freedom culture” that often promotes forex and crypto trading as quick paths to wealth. This culture, he says, is plastered all over social media, with young men showing off their wealth to lure others into buying into their success. “You’ll see screenshots of trades making 300% in a day, or profit and loss reports showing gains from £10,000 to £300,000 in a few months,” King explains. “These are gains that professional hedge fund managers could only dream of, tied in with lifestyle marketing—sports cars and Rolex watches.”

Desmaris embodies this mindset. He gained notoriety for his brazen videos, including one where he boasted about driving in bus lanes, claiming they were “for the rich.” In another video, he allegedly shows a private jet flight from Luton to Manchester via Uber, despite the company not offering such a service. He has also claimed that £20,000 a month is needed for a “normal life.”

A look into Desmaris’s background reveals a string of failed companies. Of the two still active, one, TheAlertNation, has been flagged by the Financial Conduct Authority (FCA) for being unauthorised to provide financial services in the UK. A linked social media account offers membership packages for up to £149.99 a month, promising trading advice across forex, gold, stocks, and crypto markets, as well as “personal lessons via Zoom or Call.” When approached for comment, the owner of the account responded dismissively, while Desmaris himself did not reply to inquiries.

Another self-styled trader, Anders Østerby, claims to have made his fortune through contracts for difference (CFDs), a highly leveraged investment product that allows bets on whether an asset’s value will rise or fall. In a video filmed from a Ferrari, Østerby argues that there is no reward without risk. “Is it worth the thousand dollars at risk that might change your whole life in five years, or the doubt you will have in five years that what if I just started?” he asks.

However, a disclaimer on Østerby’s page warns that 80% of retail investors lose money trading CFDs. The disclaimer also notes that his videos are “not to be interpreted as trading advice,” even though his website invites investors to “copy [his] personal trades.” Østerby also declined to comment when contacted.

Dimos, for his part, insists that he is transparent about his intentions. “I’m not promising Lamborghinis or guaranteed returns,” he says. “If you’re upfront with people, there’s nothing wrong with sponsorships or selling a course—it’s up to the individual to understand that they’re paying for time.”

It’s easy to dismiss those who fall for these financial fantasies as naive, but the reality is more complex. Economic pressures play a significant role. “Social media has distorted the concept of success, especially for younger generations,” says Barkley. “The idea that you need a Lamborghini and a luxury watch to be successful has warped many minds.”

The success of these influencers also reflects dissatisfaction with the traditional financial system. The average UK house price in July 2024 was £266,334, up 2.1% from the previous year, making homeownership increasingly out of reach. Meanwhile, wage growth excluding bonuses has slowed, making it harder for those on traditional savings plans to build significant wealth.

“Who buys lottery tickets?” asks Felix Pflücke, a law lecturer at Somerville College, Oxford. “It’s usually those with less. For them, buying a memecoin might seem like the only way to make serious money. They’re not going to get rich with a £100 a month savings plan.”

Regulators are starting to crack down on these influencers. In June, the FCA brought charges against nine influencers, including some reality TV stars, for providing unauthorised advice on CFDs. The number of promotions withdrawn by the FCA in 2023 rose to over 10,000, up from 8,600 in 2022.

Yet, influencers operating from more lenient jurisdictions like Dubai continue to pose challenges. Pflücke notes that while UK regulators are doing well, they’re limited in reach. “How can you counter influencers who aren’t even in the UK or EU?” he asks.

Financial literacy remains a key part of the solution, though it’s not a new idea. Dimos believes there’s growing awareness among retail consumers that “everything’s a bit of a scam,” and that critical thinking is on the rise.

“There’s always a winner and a loser in finance—you take that risk by participating,” Dimos adds. “People know they can’t rely on the government or the stock market for big returns. Whether it’s ethical or not, some have changed their lives following this advice. That’s a net positive.”

However, those who have lost money on complex products they didn’t fully understand may not see it that way. The world of financial influencers is lucrative but fraught with risk, and for many, the dream of financial freedom could turn into a costly nightmare.