A recently leaked list has exposed several high-profile celebrities who profit from promoting cryptocurrency projects on social media.
This revelation underscores the potential risks associated with receiving financial advice from influential people. It casts a shadow over the integrity of the crypto market.
The leaked list, shared by a Reddit user, revealed the staggering sums paid to influential celebrities for promoting cryptocurrency projects on social media platforms like Instagram, TikTok, and Twitter.
Jake Paul, who reportedly earns $150,000 or more for a single tweet about a project, tops the list. Other named celebrities include Soulja Boy, Tyga and Cameron Dallas.
While these figures have not been independently verified, they have certainly started conversations about the ethics and risks associated with celebrity-backed cryptocurrencies.
Celebrities in trouble for crypto scams
Several influencers have already faced legal repercussions for promoting cryptocurrency scams without proper disclosure of payments.
The Securities and Exchange Commission (SEC) indicted Soulja Boy for endorsing cryptocurrency scams without disclosing payment details, and Jake Paul recently paid a fine for a similar violation.
Such incidents highlight the dangers of blindly following the financial advice of celebrities and influencers, which can promote scams or high-risk investments for personal gain.
Regulators to curb endorsements of influencers
Financial and advertising regulators such as the UK’s Financial Conduct Authority (FCA) and Advertising Standards Authority (ASA) have issued warnings to social media influencers about promoting cryptocurrencies and non-fungible tokens (NFTs). ).
To prevent influencers from marketing investment scams, these watchdogs launched campaigns and partnered with former Love Island contestant Sharon Gaffka.
This association aims to educate content creators on the legal ramifications of endorsing financial products without proper disclosure.
In the wake of these revelations, investors should be careful when considering financial advice from celebrities and influencers.
Thorough research, consultation with financial experts, and a healthy dose of skepticism can help you avoid falling victim to scams or ill-advised investments.
Also, staying informed about regulatory actions and guidelines can help investors navigate the crypto market and minimize risks.
