The cryptocurrency world is witnessing a lot of changes and the participation of celebrities like never before. There is a flurry of celebrity promotions that seems to have lifted the sentiments around cryptocurrencies. The latest celebrities to join the crypto bandwagon are Larry David and Lebron James at the Super Bowl LVI. All prominent crypto exchanges such as FTX, Coinbase, Crypto.com are involved in leading crypto commercials or crypto branding of stadiums.
Crypto ads during Super Bowl 2022 showcase the increasing popularity and demand in crypto. Actor Larry David, who featured in an FTX ad during the mega event, was seen portraying a historical version of himself, wherein he speaks about his disbelief in various human achievements. Many enthusiasts have asked the reason why David featured in a crypto ad, while many thought it is one of the most ‘devastating thing to ever happen’ for the crypto world.
Another ad by Crypto.com featured NBA all-starrer Lebron James, where he portrayed himself as a young man, where he talks about taking chances in life.
As many celebrities are promoting cryptocurrencies or crypto exchanges, enthusiasts have given a mixed response. While a few feel it may do wonders to a particular exchange, a crypto, like in the case of Dogecoin and Elon Musk, a few feel it could also have a cascading effect, like the Kim Kardashian and Floyd Mayweather episode. As per reports, both Kardashian and Mayweather were paid handsome amount to promote a crypto called EthereumMax or EMAX. However, it later turned to be a pump-and-dump scam, and a case was filed in the court against the duo.
Let’s look at celebrities who have promoted digital currencies.
Matt Damon made his crypto commercial debut with the Crypto.com ad. During the commercial, Damon suggested the popular phrase ‘Fortune favours the brave’. Although, during the ad he didn’t mention crypto investments through the exchange directly. But it was obvious from the theme of the ad.
Crypto.com CEO Kris Marszalek, however, did admit that the commercial featuring Damon did lead to accounts being hacked of approximately 400 users.
NBA superstar LeBron James is another proponent of cryptocurrencies. James has teamed up with Crypto.com and is considering a deep dive into the world of Web3 through his foundation. James believes that the blockchain technology has, in fact, been revolutionising the economy. And it is also a unique way for the sports stars to engage with fans. Through his foundation ‘I Promise’, James aims to expose students to career paths in the blockchain world.
Earlier this month, Paris Hilton released her set of NFTs called the “Paris: Past Lives, New Beginnings” on the Origin Story marketplace. Hilton had first dropped her intention in the NFT space during the talk show with Jimmy Fallon.
Hilton NFT collection is being done in collaboration with the toy brand Superplastic. And not just NFTs, Hilton in fact is looking to explore the Metaverse as well.
Hilton, teamed up with Roblox to create a metaverse island called the Paris World. The Paris World comprises of amusement park, petting zoo, nightclub and mansion where they can buy outfits from her closet.
Hollywood actress Reese Witherspoon herself has got into the world of NFTs, with her own unique set of collections. It was reported that she was also exploring the metaverse world. Witherspoon in October 2021 admitted that she has bought NFTs and urged the Twitter community on cryptos to help her find similar “amazing women creating #NFTs”.
Risks and promotions
While celebrity promotion augurs well for the sector, but basic risks remain as far as investors are concerned. One of the biggest threats with celebrity promotion is investors often get swayed by the big names and invest without understanding the world of cryptos. As the cryptocurrency market is volatile and speculative in nature, critics believe that it’s only the rich and famous who end up making the big bucks due to promotional activities. The ground realities are different in terms of return on investments
Overall, while celebrities are trying to showcase the growth of cryptos and increase investors’ confidence in cryptos, no one should forget that the risk aspect remains the same. As an investor one needs to do a thorough research before investment and be extremely wary of such celebrity promotions.