Retail traders were not alone in getting burned in the crypto bear market. Several celebrities dabble in asset class with endorsements in 2022 Which led to lawsuits and damages.
Crypto markets have retreated 72.5% from their peak in late 2021 in their fourth bear cycle. Those who bought near or at its top would have taken a big hit in sales in the latter half of the year.
According to BloombergOf the celebrities who have endorsed or meddled in digital assets, most have come away with burnt fingers. The difference is that they can afford it while retail traders are more likely to suffer losses post financial loss.
Another issue is that celebrities are often seen as influencers, so throwing your weight behind something can make an even bigger impact.
Celebrities and Crypto Failures
One of the first major celebrities to endorse crypto was actor Matt Damon in late 2021. His move to the Crypto.com exchange came at a time when the markets were nearing their cycle peak. Crypto prices have dropped by more than 70% since the commercials aired.
‘Legally Blonde’ actress Reese Witherspoon tweeted that “crypto was here to stay” in December last year. She was right, crypto was here to stay, but the prices at the time were not. Additionally, her media company, Hello Sunshine, collaborated with the World of Women NFT collective in February. Since then, NFT prices have dropped by more than 75%.
Several high-profile sports personalities have endorsed cryptocurrencies in the past year or so. Boxing champion Mike Tyson to launch his NFT collection in 2021. However, the coin price has now recovered by more than 90%.
Tom Brady, the seven-time Super Bowl winning quarterback, endorsed the FTX exchange last year. We all know what happened to FTX in November. Fellow superstar athletes Steph Curry and Naomi Osaka also partnered with FTX. He has since drawn the wrath of securities regulators for potential law violations.
In March, Paris Hilton collaborated with metaverse platform The Sandbox with celebrity DJ performances. Interest in the platform has since fallen along with its SAND token price.
Celebrity socialite Kim Kardashian found herself on the wrong end of a lawsuit in January for promoting the alleged crypto scam EthereumMax on her Instagram account.
the list goes on …
In August, NFL quarterback Patrick Mahomes became the celebrity face of Dapper Labs’ new NFT platform. The bottom appears to have been knocked out of the NFT markets, with sales volume down by up to 90% this year.
Billionaire investor Mark Cuban touted his efforts to make money in 2021 as a liquidity provider using the TITAN token. IRON Titanium Token with Cuban went 100% to zero shortly after. Accept“I got hit like everybody else.”
Lastly, Elon Musk has also been highly influential in the crypto markets, especially Dogecoin (DOGE). His repeated tweets and cryptic shilling propelled DOGE to an all-time high of $0.731 in May 2021. The coin has since fallen 90% from that high peak, trading at $0.075 today.
The moral of the story is don’t listen to celebrities or influencers and do your own crypto research.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.