From Sam Bankman-Fried to Bitboy, cryptocurrency fans have been too quick to endorse social media influencers. It is a phenomenon that must come to an end. The cryptocurrency market is notoriously volatile, and the demise of once-established companies such as Celsius and FTX are shocking examples of how individuals can end up losing billions of dollars in crypto assets almost overnight.
Stop Listening to Loudest Voices
Instead of focusing on personality cults, the crypto community should focus on platforms and leaders creating products that use web3 primitives to solve problems orders of magnitude better than anything we’ve seen before. Stop paying attention to the leading voices in the room and instead begin hearing the rational, more experienced ones — even if they are occasionally quieter. Similarly, we need more builders with experience in creating actual benefits for users to speak up.
Finally, the solution lies with us and the people we choose to glorify as an industry. We must learn how to identify and assist builders in developing transparent, secure, high-quality, and decentralized applications.
Regulations in need for Crypto Influencer Marketing
Before promoting a cryptocurrency product, celebrity influencers must be extensively educated on it. With so much at stake, this is a point that no one in the industry should overlook.
Because of these significant risks, regulators are now questioning the principles of celebrities using their considerable clout to lure people into cryptocurrency. And it doesn’t stop there; more countries are trying to impose stringent conditions for celebrities looking to hook crypto products to the general public.
In addition, earlier this month, it was reported that the European Union is targeting to regulate cryptocurrencies which could result in relevant charges and penalties for crypto influencers being charged with market manipulation in case they fail to disclose potential conflicts of interest. The European Parliament Committee on Economic and Monetary Affairs approved the Markets in Crypto Assets (MiCA) bill on October 10, and it is expected to become law after a few more hurdles.
Crypto Projects to be held responsible?
The importance of celebrity endorsers must not be neglected in the midst of drama. As an industry, one must find ethical ways to use celebrities’ celebrity to promote our products.
In addition to cooperating with the new laws, it is best if crypto projects extensively educate potential famous celebrities advertisers on the advantages and risks of their products. Influencers will be in a better position to provide a more accurate picture of what they’re selling rather than simply settling for a large paycheck. A little integrity will go far toward repairing cryptocurrency’s tarnished reputation.