After FTX, Should Celebrity Endorsements Face More Scrutiny?
Summary from the AllSides News Team
After the fall of failed cryptocurrency exchange FTX, a platform with many celebrity supporters, some say that influencers aren’t facing enough consequences for controversial endorsements.
For Context: A long list of celebrities endorsed FTX and likely convinced some customers to use it, only for it to collapse amid accusations that it illegally mishandled user's money. Kim Kardashian refusing to cut ties with Balenciaga amid child exploitation accusations and David Beckham facing criticism for being a World Cup ambassador amid accusations of human rights abuses in Qatar are other recent examples of questionable celebrity brand endorsements.
Lawsuits: Some celebrities are now being sued by the Securities and Exchange Commission for their involvement in cryptocurrency endorsements, including Larry David, Steph Curry, and Tom Brady.
Where People Agree: Many voices across the political spectrum agreed that brands and celebrities should closely consider who they work with and whether the celebrity has related expertise, and that consumers should be wary of the use of celebrity endorsements to mask potential flaws with products. One family that invested in Bitcoin said FTX's celebrity endorsements were a red flag because reliable crypto companies don't usually rely so heavily on them.
Featured Coverage of this Story
From the Left
Celebrity Crypto-Hawkers Should Get a Close Look
Remember when the actor Matt Damon pontificated about how “fortune favors the brave” people who invest with Crypto.com? Or when the director Spike Lee applauded the digital rebellion championed by Coin Cloud? Since the spectacular collapse of the cryptocurrency exchange FTX, Mr. Damon, Mr. Lee and most other crypto-touting celebrities have largely gone silent — and for good reason.
There was little precedent for the scale and the star power that characterized the deluge of high-profile celebrity endorsements promoting cryptocurrencies. And now crypto values and crypto firms are going bust,...
From the Right
Shame on the celeb crypto grifters like Tom, Gisele and Larry David — who promoted FTX without a thought for the money their fans may lose
We should have seen it coming.
Someone called “Bankman-Fried” is probably not the best guy to trust with your money.
Especially given he’s just 30 years old, looks like a Fyre Festival committee member, slobs around in the tax-free Bahamas in his shorts and sandals, and until a few days ago, reigned supreme in a financial world dubbed a delusional “rat poison” by the world’s greatest businessman, Warren Buffett.
Unfathomably, Sam Bankman-Fried managed to build a cryptocurrency exchange empire, FTX, which became the third-biggest in the world with a value of...
From the Center
Celebrity Brand Endorsement Is Worth Billions. What Could Go Wrong, Kanye?
Celebrity Brand Endorsement, What Else? George Clooney made an estimated $40 million endorsing Nespresso, while Beyoncé signed a multi-year contract with Pepsi worth $50 million, making the $26 million deal that Taylor Swift signed with Coca-Cola in 2013 look … a little flat.
And as Harry Styles and Gucci bring vibrant colour to a new collection, Lionel Messi and Kylian Mbappé will be facing off in the World Cup Final, the Argentine kitted out in Adidas and the Frenchman wearing Nike.
Using celebrities and athletes to promote your brands has...
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