Influencers’ crypto endorsements are among the factors that significantly impacted the blockchain market’s growth. Before big names entered the cryptocurrency industry, people hesitated since experts say it is not a good investment.
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LOS ANGELES, CALIFORNIA – NOVEMBER 04: Logan Paul arrives for the screening of DAZN’s “40 Days” at Belasco Theatre on November 04, 2019 in Los Angeles, California.
But, after celebrities, such as Jake Paul, started to talk about NFTs and digital coins, people suddenly became interested in cryptocurrency investments.
Even billionaires like Elon Musk also helped Dogecoin and other cryptocurrencies gain more traction from investors. However, there’s one question. Can celebrities promote digital coins while hiding their financial ties?
Influencer Crypto Endorsement: Can Celebrities Hide Their Financial Ties?
According to The New York Times‘ latest report, influencers’ endorsements are still being used to hype cryptocurrencies. But, if digital coins’ value plummeted, some critics also blamed them.
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man protests against the circulation of Bitcoin in San Salvador on September 7, 2021. – El Salvador on Tuesday becomes the first country in the world to accept bitcoin as legal tender, despite widespread domestic skepticism and international warnings of risks for consumers. (Photo by MARVIN RECINOS / AFP)
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Now, this is where financial ties disclosure comes in. Laws involving cryptocurrencies are quite complicated. For example, the Federal Trade Commission requires all marketers to disclose their financial ties in the projects they promote.
“The old-world laws still apply, and you have to follow the guidelines. Otherwise, the regulators will come calling,” said David Klein, a New York lawyer.
On the other hand, critics always urge influencers to disclose their financial ties with the cryptocurrencies they endorse to avoid blockchain scams.
But, there are some instances when celebrities, who provide their crypto revenue status, still face legal issues. One of these people is Ms. Kardashian. The issue happened after she promoted EthereumMax, another crypto that is not linked to the actual ETH.
Because of this, the celebrity and EthereumMax project founders were accused of misleading advertisements.
Celebrities Criticized for Promoting Crypto
Since crypto is a sensitive topic, there are celebrities who are facing backlash after they promoted their preferred digital coins.
The Business of Business reported that influencers promoting cryptocurrencies can be an issue, especially if the digital tokens they are endorsing are volatile financial products.
Now, here are some of the celebrities criticized after getting involved in the crypto industry:
- Matt Damon
- Floyd Mayweather
- Gwyneth Paltrow
- Reese Witherspoon
- Paul Pierce
Previously, China’s crypto production renewal happened, even though miners continue to skirt Beijing’s cryptocurrency regulations.
On the other hand, Europe’s Central Bank said that it wants to regulate cryptocurrencies.
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Written by: Griffin Davis
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