Hollywood star Matt Damon
Actor, screenwriter, documentary filmmaker and producer Matt Damon highlighted the cryptocurrency market in late 2021 via an advertising campaign for the Crypto.com cryptocurrency exchange platform.
But the timing of the ad broadcast was not optimal. On the contrary. It first aired on October 28, 2021, when one bitcoin was worth $60,000, less than two weeks before the digital currency’s all-time high.
The star was picked up a few months later, in early 2022, on the television set “The Late Show” from acclaimed host Stephen Colbert, who poked fun at the American actor, saying: “never trust groundhogs for advice, no matter how convincing they are when they offer you crypto with Matt Damon”. BTC is currently more than 60% lower compared to the first airing of the ad. So for Crypto.com, the budget had to be high to afford Matt Damon… At the wrong time. In addition, the platform recently announced that it was laying off 5% of its workforce, or 260 people, to “cope with extreme market conditions”.
Buccaneers quarterback Tom Brady
The seven-time American Super Bowl winner announced in 2021 that he was forming a partnership with the FTX platform, which is owned by American multi-billionaire Sam Bankman Fried.
In this place he even appears with his wife and model Gisele Bündchen. As with Matt Damon, the timing isn’t perfect. The ad was posted in September 2021, less than 2 months before the start of bear market in the cryptocurrency market that we have yet to come out of. But the sportsman went even further into the cryptosphere. He launched a collection of 16,600 NFTs at $80 each that sold out in less than 10 minutes and even co-founded the NFT platform Autograph which raised $170 million. Which makes Brady one of the most engaged athletes in the cryptocurrency market.
Boxing legend Mike Tyson
Iron Mike, as he is nicknamed, created his own in 2021 collection of NFTs that puts him forward with laser eyes on boxing rings.
The problem is that the average NFT price has fallen over 95% since launch. A gruesome operation that will probably have destroyed a good number of the boxing legend’s 3.0 fans.
Reese Witherspoon, American actress
That businesswoman who has 28 million followers on Instagram published the following message on Twitter in December 2021: “Crypto is here to stay”.
Crypto is here to stay. I am committed to supporting creators who have pioneered the NFT space and encouraging more women to be part of the conversation. https://t.co/tq9EdwAmJC
— Reese Witherspoon (@ReeseW) 6 December 2021
A post that came just as bitcoin began to falter at the $50,000 level. But that’s not all. Her media company “Hello Sunshine” formed a partnership in February 2022 to promote the “World of Women NFT” collective and collection. Since that announcement, the collection’s average price has plunged more than 75%.
French Montana, the American-Moroccan rapper
On September 10, 2021, Karim Kharbouch of his real name created a collection of sneakers in the form of NFT titled “CokeBoyzSneakers”. The twist was that these NFTs included real-life versions of the digital shoes. The rapper wrote on Instagram “Hold on to your pair and watch the value increase.” But honestly, the underlying message of this post alone is fishy. It’s actually not a very good sign to guarantee that an asset, whatever it is, will increase in value.
Between the time of the collection’s release and the last sale, the average price of the collection dropped by 90%. The success was not there, as the value of all the sales of these NFTs is equivalent to less than 3 ETH.
Mark Cuban, the billionaire investor
The owner of the Dallas Mavericks basketball team, the theater chain Landmark Theaters and the Magnolia Pictures studio has not only done well in the crypto ecosystem. On June 13, 2021, the American had published in a blog titled “The brilliance of the dividend drive” his work on a cryptocurrency called “TITAN”, which made it possible, via obscure processes of decentralized financing, to achieve “an annual return of approximately 206%”. As a result of the runs, the asset has lost 99% of its value since the beginning of the bear market , which began in November 2021.
The billionaire nevertheless admitted that this investment “was disastrous” but that it represented only a “very small part” of his crypto portfolio. But what about the investors he brought with him? Their wallet is perhaps more sealed than Cuban in this business.
So what to take away from these disastrous crypto experiments?
In reality, we can believe that a good number of crypto-investors trust certain projects because a public figure advertises or participates in these projects in one way or another. This gives, intentionally or not, some credibility to these cryptocurrencies or these NFTs. In other words, a form of trust is established in the asset, and this is psychologically quite natural. However, as the experiences of the aforementioned celebrities show, it becomes important to become contrarian to these announcements and especially not to blindly trust certain assets for the simple reason that they are endorsed by public figures. Especially in the cryptocurrency market, which is highly volatile, technologically complex and still poorly regulated at present.
It should not be forgotten that some of these celebrities enjoy numerous benefits and/or remuneration in return for their contributions. And some ask themselves, most likely, few questions about the consequences that these actions can have on their subscribers, admirers and investors. Therefore, it is very important to always do your own research, only invest in projects that you understand and believe in. Although the cryptosphere is a good example, this intellectual approach is valid for any investment in any field.