Influencer marketing has become a great way for companies to reach new highs in terms of audiences and their rates of engagement with products and services.
Crypto itself has even been able to garnish thought leaders that pave the way in terms of content creation, creating content that possesses a lot of value and education,
However, this article will not be looking at those groups of content creators, as much as of a credit that they are to the space.
We’ll be going over the influential people that have jumped on the crypto and NFT hype to collect that “quick bag” and the results that followed.
The good, the bad, and the ugly
Over the past 12-18 months, the increase in tokens amongst cryptocurrencies did not go unnoticed.
Social media became a go to for advertising, but once the market really started to pick up in popularity, mainstream outlets picked up on their advertising efforts.
Crypto gaming is currently a leading sector for crypto a new gamers are being introduced to the different immersive titles available on the market.
However, games such as The Sandbox have allowed celebrities to endorse web3 through legitimate and more regulated means.
Fans have been able to enjoy in-game experiences from their favourite brands and personalities without facing repercussions.
Celebrities in these collaborations have shown great interest in web3, understanding the possibilities it can bring to the entertainment industry for fans to enjoy.
Every week there seemed to be a new celebrity endorsing a new project on their twitter profile.
Many of these tweets follow a very similar structure. They would state how X crypto coin is here for the long run and how they personally are holding and investing in said coin.
For many, seeing tweets like this will raise instant scepticism as it doesn’t take a level headed investor to see through the lines in their statements.
However, as these tweets were coming at an unprecedented time, many followers of these online personalities and celebrities were quick to their wallets.
Ultimately, many that invested suffered as these advertised projects were either a “Pump & Dump” or fell victim to market volatility and the current bearish market we are experiencing.
Due to the unregulated rules of crypto, many influencers were able to get away with their wrongful advertising of blockchain projects.
Lil Uzi Vert
Lil Uzi Vert, the highly popular rapper, had an NFT project called “Eternal Beings” based on the Solana blockchain.
It was available on Magic Eden, where floor prices started at $300. They now sit at roughly $20 per NFT.
Their tweets about the project have been deleted, and funds from the project were withdrawn.
Some reports have even shown that the rapper bought a Mclaren motor vehicle for his girlfriend with crypto, potentially having links to the project.
Now Jake Paul was one of the celebrities that took things to an extreme level when involving himself within web3.
He was reported to be part of multiple schemes that all had devastating results, at an estimation of $2.2 million.
- Safemoon (token)
- League of Sacred Devils (NFT)
- MILF (token)
- Yummy (token)
Due to the lack of attention from the actual authorities, YouTubers such as Coffeezilla were able to work out the dodgy doings through their own research due to the lack of attention from the actual authorities.
Jake Paul has since been involved in lawsuits against him for his crypto deals with Safemoon that involved other celebrities such as Soulja Boy and Lil Yatchy.
As many investors were left with nothing after these celebrities sold whilst fans were still buying.
Primetime television had their hands in the crypto pie as many A list celebrities had their say in advertising crypto exchanges and the concept of investing and trading digital currencies.
Many were for well established exchanges that are used by millions of crypto traders worldwide, such as eToro and Coinbase.
Examples include the ads used for the Super Bowl that featured celebrities such as Lebron James and Larry David.
Matt Damon and Tom Brady were featured, but many online have noticed these TV ads have been taken off the air. This was noticed quite close to when the crypto market experienced some volatility.
Crypto.com has managed to make an impact in the sporting world. They have their own arena that is based in Los Angeles, where popular sporting events take place.
What does this mean for crypto?
For many this recent surge in mainstream popularity for crypto is what they have been waiting for.
The exposure allows the market to grow and flourish as more investors invest their money.
However, more room is created for people to be potentially exploited.
These celebrities have large followings of young, naive fans who will not have a clear understanding of blockchain technologies.
Recent global events have left people in vulnerable positions. Therefore, when someone’s favourite musicians are promoting ways to make money, people become inclined to hand over their money.
After all if they’re doing it then it surely must be the right thing!
With how widespread the marketing was, many caught on to celebrities’ wrongdoings, with morality being questioned.
Recent market trends have put off these schemes promoted by influencers, and with how Jake Paul case ended up, authorities are becoming more and more tight on regulating cryptocurrencies going into the future.
Always be weary of any potential scams being promoted via social media networks. Remain diligent as any funds you put forward can not be retrieved if the project falls through for any reason.
These recent headlines should be enough for any new investors looking to start out to remain weary.