> People will invest in things just based on a name

Right but it doesn't follow from this that those people were tricked in some way. They can be second- or third-order bettors. Even the most sophisticated quant shop in the world, the literal sharpest players in the market, can bet 'just based on a name' if it fits into some theory about market dynamics or whatever.

> The average person generally doesn't know a lot about anything other than the specific niche that they do for a living.

But so what, it doesn't follow that because they don't know about X they are willing to trivially gamble significant amounts of money on X without even the most basic of research. "I don't know much about this so won't place a bet I'm not willing to lose" is not something that requires any great intelligence.