- Bloomberg reports that most celebrity crypto endorsements have backfired.
- Celebrities face huge losses and expensive lawsuits.
- Several sportspersons have jumped on the crypto bandwagon.
According to a Bloomberg story, the collapse of cryptocurrency has affected not just retail traders but numerous celebrity endorsers. The report said that nearly all endorsers had experienced financial losses or pricey lawsuits.
Matt Damon was one of the first widely recognized figures to support cryptocurrency publicly. His efforts on behalf of the Crypto.com exchange transpired when the bull cycle was at its peak. Since the ads began airing, the value of cryptocurrencies has dropped by more than 70%.
In March, Paris Hilton did a celebrity DJ set on The Sandbox metaverse platform. Since then, both the platform’s popularity and the value of its SAND coin have plunged. Meanwhile, Kim Kardashian was sued in January for allegedly promoting the cryptocurrency fraud EthereumMax on her Instagram account.
Actress and “Legally Blonde” star Reese Witherspoon’s December 2021 statement that “crypto was here to stay” is another example of a celebrity endorsement that backfired. The Hello Sunshine media firm she founded also partnered with the World of Women NFT group in February. Prices for NFTs have dropped by about 75% since then.
The trend is not simply restricted to Hollywood. Several well-known athletes have also made headlines for supporting cryptocurrency products, only to face severe consequences later. Mike Tyson, the legendary boxing champion, released his NFT collection in 2021. However, its value has fallen by more than 90% subsequently.
Tom Brady, a quarterback for the Patriots and winner of seven Super Bowls, was one of the most visible advocates for the FTX exchange last year. FTX went bankrupt a year later. Other famous athletes that have teamed up with FTX include Steph Curry and Naomi Osaka. Securities authorities have now come down hard on them over possible breaches of the law.
Dapper Labs’ new NFT platform got a high-profile endorser in August when NFL quarterback Patrick Mahomes signed on. This year has been particularly bad for NFT sales, and have seen drops as much as 90%.
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