Crypto endorsement deals used to be an easy way for influencers to make some money. The collapse of FTX has prompted a more cautious approach within the crypto industry regarding cryptocurrency promotions. Several celebrities faced a $1 billion class-action lawsuit after promoting FTX without disclosing their financial connections. Crypto influencers have shifted their focus towards educational content and unbiased reviews, refraining from accepting sponsorship deals.
Cryptocurrency Influencers Cautious Amidst Scandals
Cryptocurrency vlogger Tiffany Fong, who spoke with the former FTX CEO after the scandal, summed up the sentiment of those in the space, telling Cointelegraph “Since so many once reputable companies have collapsed, I don’t want to promote anything that could potentially rug customers.”
DeFi Dad, also known as “Dad Crypto,” declined a sponsorship offer from FTX without knowing the potential earnings. The fear of legal liability has not been limited to influencers though, as Nikita Sachdev, founder of Luna PR, pointed out that many crypto firms have become increasingly cautious about whom they partner with for product promotion. Further, the extended crypto winter has caused budgets to tighten and a decline in opportunities for influencer endorsement deals.
NFT Games and New Crypto Endorsement Seeking Influencer Collaborations
Crypto Mason, a popular TikTok influencer with over a million followers, has noticed an uptick in inappropriate crypto brand deals. The situation has led to the emergence of new crypto businesses, like NFT games, actively seeking collaborations with influencers.
Fees for A-list influencers in the crypto space can reach six figures, with celebrities charging millions for web3 endorsements. Crypto vlogger MegBzk advises influencers to conduct thorough research and trust the companies they work with.
The issue of trust has been at the forefront of the cryptocurrency industry since its inception. FTX has served as a wake-up call for influencers in the evolving world of promotions. In the early days of crypto regulations, influencers, and businesses must prioritize trust in promoting cryptocurrencies. To safeguard their followers, influencers can enhance transparency, conduct thorough research, and offer educational content.
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