Digital currency, aka cryptocurrency, has permeated the financial realm as one of the most unique investing instruments that’s somewhat straightforward to access and use.
When Bitcoin made its appearance, few were confident enough to take the concept seriously.
In fact, the first person ever to buy something with Bitcoin offered the asset for a pizza, which is why people are now celebrating Pizza Day. Bitcoin is valued at close to nothing, but were it kept, the famous pizza purchaser would now sit on a fortune.
Moving on, one of the most reputed developers of the moment, Vitalik Buterin, observed flaws and limitations in Bitcoin and worked to develop a cryptocurrency and blockchain that would serve as more than mere digital money.
Now, you can quickly determine the best way to buy Ethereum and use it for a wide range of purposes, from keeping it in hopes its value grows to paying for things like concert tickets and books, and the list goes on. A category of people uses it for another purpose, and that’s promotion.
These are the A-listers you see around marketing all sorts of crypto projects, at which point you may wonder what the motivation behind their investment is and the whole fanfare.
It’s a speculative investment tool – just like any other cryptocurrency, so you should treat it wisely.
Additionally, you should know the reasons why celebrities back these projects up, such as keeping the currency long-term to make profits or being recompensed for offering access to their large fanbases. Ready for the tea?
Stars often endorse cryptos-to-be, namely initial coin offerings
Many celebrities often accept to promote crypto, non-fungible tokens, decentralized finance projects, or web3 initiatives.
More often than not, you’ll see famous personalities endorsing ICOs, which, in layman’s terms, are projects that have as underlying motivation the scope of raising money to become a well-standing project the broader audience can invest in confidently.
You can think of it as crowdfunding but for crypto in the making. Involving a celebrity in such an undertaking helps improve the confidence of more prospective investors and interested parties in the reliability and genuineness of the venture.
Before anything else, let’s consider what makes stars’ efforts effective.
A study from the University of Pennsylvania’s Wharton School’s business journal explores the efficacity of celebrity endorsement, looking into the human propensity to seek, get, and accept advice from authoritative figures when having decisions to make.
Humans and primates alike tend to stick to the lead of those with superior status and prestige who naturally exert influence over crowds.
The learnings that emerged from such a thesis explain why one would invest in a crypto promoted by their favorite public figure instead of one talked about by a random media individual. Influencers and celebrities have the means and power to determine target audiences to consider or even become open to their suggested ideas.
Yes, money is at stake.
Before wondering if someone is paid money by a business to fulfill an act, you should listen to your intuition. Is it saying that the recently spotted A-lister promoting an ICO or crypto takes money for their service?
If so, the truth may already live in your head, but you need reassurance to admit it.
Notably, no one says celebrities only advocate for crypto for the greenbacks. Many actually believe in the projects they vouch for, and for good reason.
There are ICOs that became some of the biggest cryptocurrencies after the fundraising was over, such as Ethereum-based Binance Coin, which later relocated to its own blockchain.
Another way of making money that draws celebrities in comes down to the long-term investment strategy, where the affluent possessors invest in a currency they believe will perform well down the road and keep it in their portfolio until it rises significantly enough to generate hearty profits.
After all, Bitcoin and crypto, in general, may have debuted as a decentralized and pseudonymous means of transferring money that doesn’t imply go-betweens like banks or governmental agencies, but this isn’t all. Justifiably, profits-oriented people look (and often manage) to cash in on the trend.
The ways
Celebrities may endorse cryptocurrency in a few ways, two of the most common ones being:
- Setting up their customized token;
- Promoting an exchange or token they’ve shaken hands with.
Evidently, A-listers may market the products in numberless ways, be it while live streaming, through Insta reels or stories, during their live performances, or through a mere Twitter post.
Anytime a famous individual brings a similar project up, they’re promoting it on behalf of the company, looking to spread the word and build confidence in their token.
Additionally, there’s no limit on how these stars can break into the crypto realm. From footballers to singers to actors, celebrities from all walks of life have taken the plunge into the industry, suggesting how reachable crypto is.
For one’s cultural knowledge, one of the first undertakings known as a celebrity’s leap into crypto was that of Manny Pacquaio.
The well-known boxer took everyone by surprise when he revealed PAC, the earliest icon crypto token. This was built to permit enthusiasts to reach out to the star in unmet ways by introducing new ways to purchase tickets and merchandise for his upcoming battles.
Even if we’ve seen some other examples, like Mike Tyson’s, before Pacquaio’s undertaking, it’s the latter who managed to create the biggest hype.
A little bit later, tennis player Caroline Wozniacki and vocalist Jason Derulo also developed their tokens.
It was that moment when A-listers seemed honest in their use of crypto as a means to bond with fans, though this trend turned to die soon after.
Lastly, celebrities can struggle today more than ever with skepticists.
In spite of all the controversies and lawsuits making waves, A-listers still engage in such undertakings for their own scopes.
People are more cynical today of crypto endorsements and tokens, and there are a few reasons why their skepticism makes sense.
For instance, star tokens are often memecoins, whose value grows now only to drop immediately after.
Since star tokens work as memecoins, they’re not exactly the most pertinent investment if you want to invest for long-term profits.
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