Celebs who got burned endorsing crypto and those that got away with it

January 4, 2023 Coin Telegraph

Screen actors and sports stars copped most of the backlash for 2022’s crypto endorsements, while soccer legends appear to have gotten away with it.

Celebrities had a shaky year promoting crypto firms and projects throughout 2022.

Many found themselves named in lawsuits over their alleged promotion of since-failed projects, while others have been relentlessly mocked on social media for their involvement in the first place.

From movie stars to television actors, sports stars to musicians, many celebrities may be regretting their endorsement deals last year, though that’s not to say that there haven’t been exceptions.

Who got burned?

In February last year, American comedian Larry David, who co-created the television series Seinfeld, appeared in a Super Bowl commercial for now-defunct crypto exchange FTX that encouraged users not to “miss out on the next big thing.”

David has since been named in a class-action lawsuit that alleges that he, along with other celebrities, had promoted FTX to unsophisticated investors without performing any due diligence on the exchange.

He’s also being investigated by the Texas State Securities Board regard payments received by FTX for his endorsements, among other celebrities.

Meanwhile, the movie star known for his role in the “Bourne Identity” film series, Matt Damon, has continued to be mocked for his part in the $100 million promotional campaign for Crypto.com.

Damon was even satirized by the animated series South Park in the season 25 premiere in February 2022.

If you bought $1,000 of bitcoin the day Matt Damon's "Fortune favors the brave!" commercial came out, it would now be worth $375 pic.twitter.com/rp5IdjBD3m
— Jon Schwarz (@schwarz) June 13, 2022

In the sporting world, Japanese tennis player Naomi Osaka signed on to be an ambassador for FTX on March 21.

Like Seinfield’s co-creator, Osaka is also named in a lawsuit along with other high-profile celebrities who endorsed FTX including basketball legends Shaquille O’Neal and Stephen Curry, and NFL quarterback Tom Brady.

Professional boxer Floyd Mayweather was also named in a crypto promotion lawsuit in 2022 over his alleged promotion of EthereumMax, though the lawsuit was eventually dismissed by a federal judge in December.

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In the world of music, American rapper and hip hop artist Snoop Dogg has been named in a class action lawsuit for allegedly promoting Bored Ape Yacht Club nonfungible tokens (NFTs), along with other musicians including Madonna, Justin Bieber, Post Malone and DJ Khaled.

The lawsuit names over 40 people and companies as defendants, also including Tennis professional Serena Williams, actress Gwyneth Paltrow and comedians Jimmy Fallon and Kevin Hart.

Who got away with it

Interestingly, not all celebrity endorsements of crypto firms have been viewed in a negative light, nor have they attracted the scrutiny of class-action lawyers.

On Jun. 30, 2022, Binance announced it had snapped up the popular TikTok personality, Khaby Lame, as an ambassador.

The deal was seen as positive for the crypto sector, as Lame’s ambassador deal is part of Binance’s mission to increase Web3 awareness and adoption around the world.

Musician DJ Steve Aoki jumped into the NFT world with fantasy sports and sports betting operator DraftKings announcing the hitmaker as the brand ambassador for its NFT market.

American rapper Eminem performed alongside Snoop Dogg during the VMA’s to perform their NFT track "From The D 2 The LCD" featuring Otherside and Bored Ape NFTs.

In the sporting world, David Beckham became the global ambassador for blockchain company DigitalBits, launching his own range of NFTs in the process.

He appears to have avoided any accusations of wrongdoing despite the founders of DigitalBits being accused in an investor lawsuit for “diverting money needed for development” to expensive sports deals and luxury travel, according to a January 2022 report from The New York Times.

Meanwhile, legendary soccer player Lionel Messi has done deals with Singapore-based Bitget, fantasy sports platform Sorare and digital fan token company Socios.com.

Cristiano Ronaldo's foray into crypto sponsorship also appears to have gone down well in the community, working with Binance for the launch of an exclusive NFT collection allowing collectors the chance to receive perks including a personal message from Ronaldo and signed merchandise.

19 celebrities called out by consumer watchdog group for shilling NFTs

August 16, 2022 Coin Telegraph

Coin Telegraph

Consumer watchdog group Truth in Advertising says celebrities promoting non-fungible tokens (NFTs) on their social media channels is an area "rife with deception."

Consumer watchdog group Truth in Advertising (TINA.org) has called out 19 celebrities for allegedly promoting non-fungible tokens (NFTs) without disclosing their connection to the projects.

The not-for-profit consumer advocacy organization said on their website they investigated "celebrities who promote non-fungible tokens (NFTs) on their social media channels", finding that "it is an area rife with deception."

Among the star-studded list are sports stars Floyd Mayweather and Tom Brady, music icons Eminem and Snoop Dog, and several actresses, including Gwyneth Paltrow, all of whom have been sent letters urging them to immediately disclose any material connections they have to NFT companies or brands they have promoted, stating:

"The promoter often fails to disclose material connection to the endorsed NFT company."

NFTs are digital certificates stored on the blockchain proving ownership of a digital or physical asset, often an artwork, with many high-profile projects often attracting celebrity endorsement and promotion.

While no real legal penalty has been attached, TINA.org noted that it sent letters to the celebrities involved on Aug. 8 outlining their grievances and advising them of the potentially harmful effect shilling NFTs can have on the public.

One of the group's primary concerns outlined in the letters is that the possible financial risks associated with investing in such speculative digital assets are not being disclosed.

TINA.org previously sent letters to Justin Bieber and Reese Witherspoon's legal teams on June 10 for promoting NFTs on their social media accounts without disclosing their connection to the projects.

Bieber's legal team responded on July 1, denying any wrongdoing but stating the posts would be updated.

While Witherspoon's legal team contacted TINA.org on July 20, claiming the actress is not receiving any material benefits from promoting NFTs.

Shilling could violate FTC guidelines

In a blog post on their website, TINA.org wrote that the previously mentioned celebrities could be violating the Federal Trade Commission (FTC) rules regarding the Use of Endorsements and Testimonials in Advertising and the requirements for influencers.

The advocacy group links to the FTC website which outlines that influencers must disclose any material connections to brands they are endorsing, and make the disclosures clear, unambiguous, conspicuous, and within the endorsement.

So far, there has not been a publicized case of celebrities facing legal penalties for shilling NFTs or crypto.

Though there are several ongoing class action suits, most famously against Elon Musk for his endorsement of Dogecoin, and Mark Cuban for promoting Voyager crypto products.

A handful of other celebrities like Matt Damon caused a significant stir when he appeared in an ad promoting crypto products, which saw the actor relentlessly mocked and ridiculed for his involvement.

Don't listen to celebs: SEC

In 2017, the U.S. Securities and Exchange Commission (SEC) warned investors about celebrity-backed initial coin offerings in a post on their website.

"Investors should note that celebrity endorsements may appear unbiased, but instead may be part of a paid promotion."

"Celebrities who endorse an investment often do not have sufficient expertise to ensure that the investment is appropriate and in compliance with federal securities laws."

According to the SEC, celebrities and influencers using social media to encourage their followers to purchase stocks or other investments could be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly.

Nifty News: NFT searches at ICO-mania levels, a robot and Snoop Dog drop NFTs, plus more

March 24, 2021 Coin Telegraph

Aston Martin

NFT Searches are on track to surpass the levels last seen for ICO searches in 2017, as Snoop Dog, Aston Martin, and an autonomous robot ready their own NFT drops.

Interest in non-fungible tokens, or NFTs, has surged to almost the level of searches for the term 'ICO' during the 2017 bull market mania, according to data from Google Trends. With eight days left in March, the current spike in interest could even surpass interest in ICOs back then, which would be an impressive feat indeed.

The Initial Coin Offering mania in 2017 was partly the cause, and partly the result, of the 2017 bull run that culminated in Bitcoin peaking just shy of $20,000.

Given NFTs span gaming, music, art, virtual land — and can even represent real world objects like houses — they potentially have a much larger audience than the predominately finance and tech people who were drawn to ICOs.

*Search interest for NFT vs. ICO. Source:* *Google Trends*

Search interest has no doubt been sparked by the mainstream media enthusiastically covering NFTs being sold for jaw dropping prices including a collage from digital artist Beeple selling at Christie’s for $69 million and music producer 3LAU selling his new album as NFTs for $11.7 million.

Snoop Dog, Lionel Richie, and Boy George

Cryptocurrency exchange Crypto.com has announced it will launch a new NFT marketplace featuring drops from Snoop Dog, Lionel Richie, and Boy George along with James Bond’s favorite Formula One team Aston Martin. The platform, which is due to open on March 26, will focus on “delivering unique content from popular artists, musicians, athletes, and sports.

Aston Martin’s Cognizant Formula One team will launch a series of moments on the platform, capitalizing on the success of sports memorabilia platforms including NBA Top Shot and Sorare. Managing Director of the team Jefferson Slack stated:

“The collection of NFTs we’re making available capture the very first moments of our return to F1 after more than six decades.”

The new Aston Martin team makes its F1 race debut in Bahrain, on 28 March

Do the robot

Art created by Gaka-Chu, an autonomous robot developed by the Robonomics team, is currently being auctioned on NFT marketplace Rarible. The robot has actually been creating art for more than three years now, but this is reportedly the first time work created by the robot has been sold as an NFT.

I've got the first bids and it's 2 eth in total! This is absolutely fantastic! pic.twitter.com/d3unCUYZsF
— Gaka-Chu (@gaka_chu_art) March 23, 2021

The unique aspect is the fine art created by the robot is entirely self-managed, with the creation process recorded and included in the NFT. One piece, with a current bid of $1,674, features the robot drawing the Ethereum logo with the attached quote, “It would never happen without Ethereum. I can work, create and live my best life.”

3 Million GameTalkTalk users can soon mint ‘carbon neutral’ NFTs

Enjin has partnered with Ludena Protocol to integrate “eco-friendly NFTs” into Korea’s top social gaming app GameTalkTalk. The partnership will allow the app’s 3 million users to create their own NFTs for digital fashion, pets and real estate.

According to a release, Enjin’s multi-chain approach will reduce the impact of NFT minting on the environment (a hot button issue right now) through a number of technologies, including JumpNet, a gas-free scaling solution. The app also will showcase the technology to large gaming brands including Blizzard and SEGA.

$500,000 digital home on Mars

An NFT collector has paid $500,000 for a digital home in a Mars-like landscape. That’s more than most homes go for here in the physical world on Earth.

“Mars House” sold on Superrare earlier this week for 288 ETH. Krist Kim, the creator, dubbed it as the first true digital home, and it was designed in collaboration with an architect, using video game software.

In the Instagram post, Kim explained that the new owner could bring the home and furniture to life with the help of a team of glass furniture-makers based in Italy. Kim also has a strong vision that the art could be projected in a physical house.

“Everyone should install an LED wall in their house for NFT art.”

So in theory you could potentially show off your $500,000 NFT home on the wall of your $300,000 condo.

Snoop Dog