As a result of the recent crypto crash celebrities promoting and supporting cryptocurrency have become silent.
Celebrity’s Support For Cryptocurrency
Over the past year, A-list actors and sports stars have shown more and more interest in cryptocurrencies.
Celebrities talked about crypto as if it had its own culture and philosophy, was more inclusive than traditional finance, and gave people the chance to both earn and make a lot of money.
This year’s Super Bowl was called the “Crypto Bowl” because a lot of commercials, some of which cost as much as $7 million for 30 seconds, were about the cryptocurrency industry. Several of these ads featured well-known people in the industry.
In turn, you could say that their power had a huge effect on the market. In fact, 280 percent more people downloaded crypto apps after Super Bowl ads.
Specifically, the number of Coinbase downloads went up by 309% week over week after the ad ran and by 286% the next day.
A-List Actors, Sport Stars Supporting Crypto Go Silent
After the recent market drop, however, these well-known supporters are getting more and more criticism for telling their followers to invest in cryptocurrencies without pointing out the risks.
When compared to things like clothes or food that celebrities promote, the crypto market is definitely more unpredictable.
“People are investing real money here. “Those who promote it should be more honest about the risks,” Giovanni Compiani, a marketing researcher at the University of Chicago, told The New York Times. He said that younger and lower-income investors tend to be overly optimistic about the future of crypto.
So far, the celebrities who support the crypto community haven’t shown any signs that they are rethinking their support. Associate professor of marketing at Syracuse University, Beth Egan, said:
“This is what they do — they’re celebrities, they got offered money to promote something that has promise.”
Ms. Egan did warn that there were risks involved. They might be praised for their support of the crypto industry if it is still going strong or if it goes back to its former glory. But if the economic crisis continues, it could hurt their reputations.
