The level of interest in cryptocurrencies shown by A-list actors and athletes alike has reached new heights over the past year.
Celebrities portrayed crypto as a realm with its own distinct culture and philosophy, one that was more inclusive than traditional finance and offered 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 and featured well-known people in the field.
In turn, it could be said that their influence had a tremendous impact on the market. Indeed, crypto app downloads increased by 280% after the Super Bowl ads. Coinbase downloads increased by 309% week over week and 286 percent the next day after the advertisement aired.
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After the recent market decline, these well-known supporters are facing increasing criticism for encouraging their followers to invest in cryptocurrencies without adequately highlighting their risks. When compared to other things celebrities promote, like clothes or food, the cryptocurrency market is a lot more unstable.
“Investors are putting up actual cash.” Younger and lower-income investors tend to be overly optimistic about crypto’s future, according to Giovanni Compiani, a marketing researcher at the University of Chicago, who told The New York Times that those who promote crypto should be more forthright about the risks.
There are currently no indications that the crypto community’s celebrity supporters are reconsidering their endorsements. Associate professor of advertising at Syracuse University, Beth Egan, stated:
“This is what they do — they’re celebrities, they got offered money to promote something that has promise.”
Ms. Egan cautioned, however, that it was not risk-free. They could be commended for their support of the cryptocurrency industry if it has not declined or if it recovers its former glory. Nevertheless, if the economic downturn continues, their reputations may suffer.
“If I were Matt Damon or Reese Witherspoon, I would be questioning my willingness to take on this kind of gig,” she said.
Notably, Finbold noted on May 20 that nearly $1 trillion had been wiped from the market capitalization of cryptocurrencies in 2022, representing over 40 percent of the industry’s cap.
Source : Finbold