Celebrities Take A Risk With Crypto Endorsements In 2022

In the bear market for crypto, retail traders weren’t the only ones who suffered losses. And in 2022, several famous people experimented with the asset class by endorsing products, which resulted in lawsuits and financial losses.

In their fourth bear cycle, the crypto has lost 72.5% of its value since its highs in late 2021. When selling in the second half of this year, those who bought close to or at the peak would have incurred significant losses.

Bloomberg claims that most celebrities who have promoted or experimented with digital assets have ended up with burned fingertips. The distinction is that they can afford it, but retail traders are more susceptible to suffering as a result of losses in business.

Putting their support behind anything can have an even more significant impact because celebrities are frequently seen as influencers.

Celebs & Crypto Mistakes

Matt Damon, a well-known actor, was one of the first big names to support crypto in late 2021. When he ran for the Crypto.com exchange, markets were just before their cycle peak. Since the ads ran, crypto prices have fallen by over 70%.

Reese Witherspoon, an actress, known for her role in Legally Blonde, said in a tweet that cryptocurrency is a long-lasting investment. She was correct; cryptocurrency was here to stay, but the values weren’t. Additionally, her media outlet Hello Sunshine worked with the World of Women NFT group in February. The prices of NFTs have fallen by more than 75% since then.

Several well-known sports figures have endorsed cryptocurrencies in the past year or two. In 2021, Mike Tyson, a former boxer, debuted his own NFT line. The coins’ prices have now fallen more than 90%, though.

Seven Super Bowl champion quarterback Tom Brady made headlines by endorsing the FTX exchange last year. Everybody knows what happened at FTX in November, and Steph Curry and Naomi Osaka, two other great sportsmen, have partnered with FTX. Since then, they have experienced the fury of securities regulators over alleged legal infractions.

In March, Paris Hilton collaborated with the metaverse platform The sandbox with a celebrity DJ performance. Interest in the forum has since plummeted along with its sand token price.

Kim Kardashian, a famous socialite, was named in a case in January for allegedly using her Instagram account to promote the alleged crypto fraud EthereumMax.

The Process Continued

Patrick Mahomes, an NFL QB, was chosen in August to represent the new NFT platform from Dapper Labs. This year’s sales volume was down by as much as 90%, so the NFT markets are in free fall.

The successful investor Mark Cuban spoke about his plans to use the TITAN token in 2021 to profit as a liquidity provider. Shortly after, Cuban acknowledged that I had been struck along with everyone else, and the IRON Titanium Token fell 100% to zero.

Elon Musk, particularly in the case of Dogecoin, has also significantly impacted the crypto market (DOGE). In May 2021, DOGE reached an all-time high of $0.731 because of his persistent tweets and covert promotion. The coin trades at $0.075 after falling 90% from its stratospheric peak.

Related Reading | Experts Foresee Ethereum Price Challenges Despite Solid Fundamentals

The lesson here is to perform your crypto research and not follow the advice of influencers or celebrities.

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