The Dangers of Taking Celeb Crypto Advice
More celebrities like Kim Kardashian and Floyd Mayweather are landing in hot water and came under fire for reportedly misleading potential investors about a cryptocurrency project called EthereumMax. This led to multiple lawsuits being filed against the celebs, as well as severe public backlash for taking part in what was essentially a “pump and dump” scheme.
While it did not appear to be the result of an intentional scam, their endorsements for a rather unknown product cost people significant amounts of money. With the 2021 Super Bowl it demonstrates the importance to use this as a valuable lesson, as there are sure to be countless celebrity endorsements of various crypto projects.
During the 2021 Superbowl, the cryptocurrency platforms FTX and Crypto.com advertised with some ads that utilize celebrity influence as a marketing strategy. Crypto’s popularity right now is at an all-time high.
Not only is it seen as an investment opportunity, but its infrastructure has improved to the point where it is becoming relatively practical. It would not even be crazy to say that crypto is trendy, with many people who haven’t yet gotten into it wanting to get involved.
Unfortunately, this climate can open the door to scams at worst, and poor investment decisions at best. It is easy to assume that a celebrity endorsement means that investing in specific crypto will be safe and profitable.
When you realize that these celebs are being paid millions through various platforms to endorse a specific investment, you can begin to realize that their words cannot always be taken at face value as they may not be the most reliable sources of information. Having celebs talk about crypto is “cool” at face value, but that is all it is.
If you are seriously interested in joining the crypto scene, I would highly suggest doing sufficient research. The operations behind crypto are far more complicated than any Super Bowl ad you see will lead you to believe, and it is important that these factors are understood before you dive in.