Not only small private investors, but also some celebrities got their fingers burned in this year’s crypto bear market.
Some have even faced lawsuits for promoting cryptocurrencies.
Since the November 2021 peak, the total crypto market capitalization has fallen 72.5% in the fourth bear market. Those who bought into the highs suffered massive losses on a sell-off in the last half of this year.
As reported by the Bloomberg newsmagazine, most celebrities who have advertised or dabbled in digital assets have also suffered heavy losses. However, celebrities can absorb losses much more easily compared to an ordinary small investor.
However, many consider celebrities as influencers at the same time, which is why their popularity can have a much bigger impact on the market than small investors.
Celebrities and their crypto fail
One of the first prominent cryptocurrency advocates was actor Matt Damon. At the end of 2021, he launched an advertising campaign with the crypto.com exchange – just when the markets were near the peak of the stock cycle. Since the start of the campaign, the prices of most cryptocurrencies have fallen by more than 70%.
“Legally Blonde” actress Reese Witherspoon tweeted in December last year that “crypto is here to stay.” She was right, cryptocurrencies are here to stay, but the prices back then weren’t. Additionally, her media company Hello Sunshine collaborated with the NFT World of Women collective in February. Since then, the prices of these NFT tokens have fallen by more than 75%.
Over the past year, several high-profile sports figures have also spoken out in favor of cryptocurrencies. For example, multiple boxing world champion Mike Tyson launched his own NFT collection in 2021. However, its token prices have now crashed by more than 90%.
Seven-time Super Bowl winner Tom Brady backed the FTX exchange last year. We all know what happened to FTX in November. Fellow superstar athletes Steph Curry and Naomi Osaka have also teamed up with FTX. They have drawn the ire of securities regulators over possible violations of the law since the crash.
In March, Paris Hilton collaborated with the Metaverse platform The Sandbox and performed there as a celebrity DJ. Interest in the platform has since plummeted along with the price of SAND tokens.
Additionally, Kim Kardashian was sued in January for promoting the EthereumMax crypto scam on her Instagram account.
The list continues…..
In August, NFL quarterback Patrick Mahomes became the prominent face of Dapper Labs’ new NFT platform. Now NFT markets seem to have bottomed out. The platform’s sales volume has dropped 90% this year.
Billionaire investor Mark Cuban announced in June 2021 that he wants to make big money as a liquidity provider with the TITAN token. However, soon after, the price of the IRON Titanium token dropped 100% or zero. Cuban admitted:
“I was touched like everyone else.”
Finally, of course, we have to mention Elon Musk. His influence on the digital markets and especially the Dogecoin was particularly great in 2021. With his many tweets promoting the cryptocurrency, he took the memecoin to its last all-time high of $0.731 in May 2021. Since then, the price of DOGE has fallen around 90% to currently stand at US$0.075.
The moral of the story: Don’t trust any influencers or celebrities, always do your own research before investing in cryptocurrencies.
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The moral of the story is don’t listen to celebrities or influencers and conduct your own crypto research.
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