Does Celebrity Endorsement Really Help Cryptocurrencies?
Kim Kardashian West posted an EthereumMax ad on her Instagram Story to her more than 228 million followers. Other celebrities, including Floyd Mayweather, have endorsed the coin as well.
But this isn’t just about EthereumMax. It’s about celebrity endorsements in the crypto world.
Let’s face it, celebrity endorsements sell products. People idolise celebrities, yes and the key word here is “idolise”. Fans admire, revere, or love greatly or excessively celebrities whom they follow. And it is because of this excessive behaviour that when their idols are seen in advertisements promoting a new product, there will be some huge fans that are prompted to buy that product.
To put it bluntly, when a celebrity promotes a cryptocurrency, its legitimacy is suddenly ‘evoked’, especially among the biggest fans although regulators and experience crypto investors have continue to emphasise the importance of doing our own research on crypto projects because the industry is so rife with scams and fraud.
While many celebrities have attracted some attention for the crypto sector including Paris Hilton, Steven Seagal, Gwyneth Paltrow and Akon, just to name a few, one cannot argue that most of them are not experts in the crypto or finance fields. There are often no authentic brand relationships between them and the crypto projects and their endorsements are just merely financial transactions for them.
In contrast, tech personalities or billionaires that are vocal cryptocurrency investors such as Elon Musk of Tesla, Jack Dorsey of Twitter and Square, and most recently, Ricardo Salinas Pliego of Mexico’s Banco Azteca have influenced cryptocurrencies and projects more than any mainstream celebrity.
According to data from MuseFind – Influencer Marketing , 92% of consumers trust an influencer more than an advertisement or traditional celebrity endorsement. It is therefore not surprising that people react to those individuals who are well known within the crypto community, their opinions or advice more aggressively.
Regardless, make sure that you have done enough research before making any investment decisions. And remember don’t go into it blindly even if it is endorsed by your favourite idol.