Investors lost millions following celebrities.
Because of celebrities’ involvement in the nascent asset class, things have not really gone well for investors who joined the crypto bandwagon after following their loved superstars.
Cryptocurrency popularity skyrocketed last year following an influx of celebrities across various niches, including sports, reality TV, music, etc.
Many investors were lured into cryptocurrency as popular figures declared interest in the asset class. Celebrities like Mike Tyson, Matt Damon, Tom Brady, Mike Tyson, etc., ventured into the nascent industry last year.
Many were used to promote various cryptocurrency projects, while others chose to offer non-fungible tokens to their fans.
A Blessing and A Curse
It is noteworthy that celebrities’ involvement in cryptocurrency contributed to bolstering the prices of various crypto assets, with a good number of coins and tokens hitting new all-time highs (ATH).
Unfortunately, things have not gone pretty well for investors who delved into the crypto world because “scores of celebrities touted the life-changing power of crypto investing,” Bloomberg reports.
This year, the prices of various cryptocurrencies are far from their all-time high. For instance, BTC is down 66.2% from its ATH, while Ethereum has plummeted 65.6% since reaching an all-time high of $4,878.
Many investors who joined the cryptocurrency bandwagon as a result of celebrities’ entrance into crypto are left scratching their heads.
Here is a list of a few celebrities who promoted cryptocurrency investment as a safe haven and how things are going at the moment.
Matt Damon (Actor)
The popular Hollywood actor was featured in a Crypto.com campaign dubbed “Fortune Favors the Brave.” The ad aired on October 28, 2021, and contributed immensely to the number of people who joined Crypto.com trading platform afterward.
However, since Damon’s ad went live, the price of Bitcoin has tumbled by 60%. This subjected the actor to widespread criticism, with many saying he marketed risky investments to his fans.
Tom Brady (American Football Player)
Brady was also instrumental in luring many people into the world of cryptocurrencies via an FTX crypto ad he featured in.
Recall that in June 2021, Brady announced to his 12.5 million Instagram followers that he was getting involved with crypto. He later asked if his fans were interested in entering the cryptocurrency world with him. Meanwhile, BTC’s price has crashed 35% since the ad made its debut.
Mike Tyson (Boxer)
In August 2021, Tyson launched his own non-fungible token. The digital collectible gave Tyson’s fans the opportunity to have access to exclusive content, including an incident where the popular boxer bit Evander Holyfield’s ear. Unfortunately, the value of Tyson’s NFT has plunged massively by more than 95%.
French Montana (Rapper)
The rapper is one of the many celebrities who launched non-fungible tokens. On September 10, 2021, Montana created a sneaker NFT collection. The digital collectible also gave investors access to real-life versions of the shoes. Fast forward to today, the price of the NFT has dipped 90%, plunging investors into serious losses.
Other Than Celebrity: Mike Novogratz (Galaxy CEO)
Mike Novogratz, one of the popular figures in the crypto industry’s love for the terra (luna), was catastrophic, as terra made investors lose billions after the Luna crashed. With the tattoo on his arm, Novogratz declared himself officially Lunatic, but the terra collapse was one the biggest unwelcome event in the crypto industry that, other than losses, made investors take their lives.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.