Ah, celebrities. They’re among the top 100% of earners in the world. And yet, they still want to earn more. Who can blame them? We would probably all do it if we can. Making thousands, no, hundreds of thousands from a simple Instagram post? Yes, please.
But, sadly, the world doesn’t work this way. If somebody asked us to promote crypto and the Algorand Price today, we probably would. But would you air on the side of caution, unlike the celebrities?
What do we mean by that? Well, from 2021 to 2023, celebrities made some big crypto mistakes. A lot of people did. It wasn’t easy to understand the market, but, come on, these celebrities were endorsing things they didn’t believe in. Oh wait, that’s what they always do. Do you really think Jennifer Anniston uses Aveeno, or do you think she uses La Creme, selling for $13,000 for a 50-gram jar? You decide.
Anyway, back to crypto.
It seems to be a never-ending drama. Just recently, Christiano Ronaldo made the news, along with Binance, for endorsing NFTs, resulting in a $1 Billion Lawsuit. And that’s after Binance had to cough up $4.3 billion in penalties and forfeitures to the U.S. Justice Department.
Does it end there? No. So, let’s explore some more.
Celebrities In Trouble
The world of cryptocurrency endorsements has seen its fair share of controversies involving high-profile celebrities. For instance, Kim Kardashian and Floyd Mayweather faced legal challenges due to their promotion of the EthereumMax token. Investors who felt misled by the token’s subsequent price collapse filed a lawsuit alleging that the celebrities had falsely promoted the investment’s potential.
Another notable case involved the well-known actor Steven Seagal, who endorsed a cryptocurrency venture called Bitcoiin2Gen. Seagal found himself in hot water with the SEC for not disclosing the payment he received for promoting this ICO, which raised red flags about the legitimacy of the project – you have to wonder why people with so much money would do that.
Similarly, DJ Khaled and professional boxer Floyd Mayweather Jr. encountered legal difficulties following their promotion of the Centra Tech ICO. The U.S. Securities and Exchange Commission (SEC) charged them for failing to disclose payments they received for endorsing this cryptocurrency – later revealed to be a fraudulent scheme, obviously. Again…why?
These instances highlight the risks celebrities face when venturing into the volatile and often murky waters of crypto endorsements – it’s a shame they didn’t realise it with the dollar eyes.
The lack of regulation and the complexity of blockchain technology can lead to situations where even well-intentioned endorsements result in unintended consequences. As such, these cases serve as cautionary tales for public figures considering crypto endorsements.
The NFT Downfall
The NFT downfall was another celebrity flop.
At the height of the NFT boom, some digital artworks were sold for staggering amounts. Amounts celebrities can afford, of course. The artist Beeple’s digital work Everyday: The First 5000 Days was sold at Christie’s for a jaw-dropping $69 million. Insane.
This sale set records and drew the attention of celebrities and investors alike. The old Twitter (X) CEO Jack Dorsey’s first tweet, converted into an NFT, fetched $2.9 million. That one doesn’t even make sense. But people were going crazy for it.
Actress Lindsay Lohan sold her own digital artworks as NFTs (innovative from her team). The Lindsay ‘Lightning’ Lohan NFT sold for over $50,000. Singer Grimes sold a collection of digital artworks as NFTs for nearly $6 million.
The list could go on. To be fair to celebrities, everyone went crazy for NFTs.
How to Know What to Trust
You need a discerning approach to crypto endorsements. For potential investors, it’s crucial to look beyond the allure of celebrity endorsements. Research is key – it’s crazy to put your money into an investment just because someone tells you to do it.
Understanding the fundamentals of the cryptocurrency or NFT being endorsed, the team behind the project, and its market potential is essential. Investors should seek information from multiple sources. Those sources include industry experts and independent analyses rather than relying solely on a celebrity’s influence.
Should We Trust Them At All?
The trustworthiness of celebrity endorsements in the crypto space is a contentious issue. You should probably just avoid it. In fact, if you Google it, there’s no listing of celebrities actually making wealth from cryptocurrencies. That’s not to say you can’t do it with your own research, but it is saying they definitely don’t do it in the way they’re endorsing it. Yes, they can bring attention to legitimate projects, but their endorsements do not guarantee success or credibility.
Ultimately, the decision to trust a celebrity’s endorsement should be based on individual due diligence and a critical evaluation of the endorsement’s authenticity
Celebrities and potential investors approach these endorsements with caution. You can’t always trust what you read – if you know anything about social media, the internet, or celebrities, you’ll know this to be true. Take everything you read with a pinch of salt, and if the celebrity you’re looking at doesn’t look like they’d have a clue about cryptocurrency, they probably don’t.
