The Twitch Bad Investment: Experts Weigh In

In a recent tragedy, Twitch star tWitch was reported to have taken his own life due to bad investments and financial problems. Reports of the Stomp The Yard star's passing have left many in the Twitch and esports communities in shock, and the speculation of what may have lead to the actor's untimely death sparked a conversation about the risky investments of Twitch stars.

Kaitlyn Siragusa, or as known in the Twitch world as Amouranth, is a 29-year-old variety streamer who spoke out about the dangers of investing after tWitch's passing. Siragusa, who is also an investor, revealed that tWitch may have killed himself after losing his life savings in a bad investment. She shared her own story of how she had made a risky investment into an inflatable pool company that did not pan out, and how she had to rebuild her investments after taking a financial hit.

The investment buzz around esports has faded, experts in and around the industry have had mixed opinions on the matter. Casey Chafkin, a venture capitalist who focuses on the gaming industry, weighed in on the conversation. “It's unclear to me how much of it was bad faith and how much of it was bad decisions,” said Chafkin. “But it does seem like there was a lot of bad decision making around investing in the esports space.”

The Securities and Exchange Commission (SEC) has recently filed a complaint against Jonathan Bankman-Fried, the founder of a cryptocurrency hedge fund, for defrauding investor and illegally using their money. The SEC alleges that Bankman-Fried misused the money that was invested in his hedge fund and his own personal use. This news has added to the discussion around Twitch investments, as it seems that bad decisions and poor financial controls have been rampant in the industry.

Timothy Lee, author of the book “The Twitch Effect,” weighed in on the topic as well. He believes that Twitch stars should be wary of investing in any venture, as the risks are high. “I think it's important to remember that when it comes to investing, there's no such thing as a sure thing,” said Lee. “Treat your investments like a game, and the only way to win is to play it smart.”

The conversation around the risks of investing in esports and Twitch has been ongoing for a while, but the news of tWitch's passing has brought the issue to the forefront. Although Twitch stars may be tempted to invest their hard-earned money, experts in the industry warn to tread carefully.