A crypto researcher has published a list of stamps from more than 100 influencers when they post a crypto project on the social network. American star Lindsay Lohan is there.
Some influencers have decided to invest in cryptocurrencies to make a lot of money. A crypto researcher known as Zachxbt, who is widely followed by the crypto community, has published a list of the size of the fees for more than 114 crypto influencers on Twitter. The information was first revealed on the US media Motherboard (Vice).
Zachxbt explains that he got this list from a web 3.0 marketing company.
“I published this list to increase the overall transparency of paid blockchain advertising. Many people on the list do not disclose when something is paid for. Not to mention that it is illegal in many countries (UK, US, US, Dubai , etc.). This has been a problem in blockchain for some time now, “he told BFM Crypto.
In this document, which mainly lists American crypto-influencers, some would be more affordable than others. US star Lindsay Lohan, who has already tweeted about bitcoin, would receive $ 25,000 for an advertising tweet and $ 20,000 for a retweet. Do the stamps on this list correspond to reality?
The motherboard reached 60 of the accounts on the list, and several explained their paid work process. The motherboard was not able to verify the accuracy of the entire list, but one of the influencers appearing on the list we have spoken with, said the amounts were correct. Others said the prices were wrong but said they made money tweeting about crypto projects. “
Hidden advertising for certain projects
The document mainly points to a practice that has become commonplace: the “shilling” of cryptocurrencies. “Not everyone on the list makes undisclosed shillings, but the vast majority of the names I see there are,” Zachxbt points out. The French unicorn Ledger provided a definition of cryptocurrency shilling in a post on his blog.
“You may come across an influential figure, such as a celebrity (not necessarily related to cryptocurrencies), who has actively put their name and support behind a project. They will encourage new and old investors to invest in the project without necessarily offering transparency. “be careful, because it is possible that the celebrity was paid to promote the sale of the cryptocurrency and that they have no real knowledge – or interest – in the project,” Ledger said.
Faced with the rise of this type of practice, some regulators have taken the lead. In January, Spain became the first country in the EU to regulate advertising for cryptocurrencies on social media. Spanish influencers with 100,000 followers who want to promote a crypto project must now give advance notice that it is promotional postings. In case of non-compliance with the rules, they can be punished with a fine of up to 300,000 euros.
In France, as far as advertising in general is concerned, the Consumer Code, which applies without specificity to cryptocurrencies, is used by
Directorate-General for Competition, Consumer Affairs and the Fight against Fraud (DGCCRF). It was this organization that in July sentenced influencer Nabilla Benattia Vergara to pay a fine of 20,000 euros for misleading trading practices on social networks. Contacted by BFM Crypto about crypto-influencers, DGCCRF has not yet responded to our requests.
“If an influencer trades at the request of a financial instruments trading platform, it must ensure that any advertising information is identifiable as such, accurate, clear and not misleading,” the Financial Markets Authority (AMF) explains to BFM Crypto. .
In the cryptocurrency ecosystem, only digital asset providers in France (PSAN) registered by AMF can advertise and request on social networks.
“Faced with the resurgence of investment recommendations or recommendations from trading sites of influencers on social networks, AMF’s Department of Investor Relations and Protection (DREP) calls for vigilance: it is advisable to question the financial skills of these self-presenting people. as experts, the sincerity and the uninterested nature of these prescriptions, the salaried nature of which is not always clearly stated, “the AMF declared in October 2021.