Amid the current cryptocurrency meltdown, many people are feeling a bit resentful of the celebrities who bought this stuff. Gwyneth Paltrow, Tom Brady, Reese Witherspoon, and even Larry David have all been happy to help popularize cryptocurrency in recent months, only to shut up now that things are getting a little tough. For Matt Damon, “Wealth smiles at bravery”… who seems not brave enough to say that he might have been a bit too pardoned in trying to get ordinary people to gamble with their hard-earned money on huge assets – speculation.
If crypto is going to make you money, to an extent, why does it need so many high profile celebrity endorsements? After all, money is the most famous celebrity of all time.
There you have it: Celebrities endorse and support financial products and services all the time – products and services that fall into the smallest realm. If you’re going to get pissed off at LeBron James for appearing in a Crypto.com ad, you’ll likely also be upset by Tom Selleck’s reverse mortgage ads, places where William Devane talks about buying gold, or Series A entry-lists for SPACs. In the 1990s, Whoopi Goldberg was a spokesperson for Flooz, the cryptocurrency of the era that was eventually decimated by crime and fraud.
It might seem a little obvious to point out – celebrities always mention – but I think they do, especially when it comes to money it’s worth focusing on. Personal finance and investing are supposed to be a bit unexciting; The way you customize your 401(k) isn’t particularly great. Today, marketers, advertisers, and the broader culture have managed to make it a hobby and a way of life. Confidence has fallen a lot in traditional financial institutions. People might think that the Bear Stearns weren’t doing a great job in the 2000s, so why not take a risk with what Floyd Mayweather says is a good idea now? Corporations are able to maneuver around this institutional mistrust, replacing cold, unreliable, faceless banks with likable celebrities, to whom consumers may be more open.
Anna Andelec, a brand manager and expert in the sociology of business, explained that banks left customers “dry” after the 2008 global financial crisis. “What did they replace that trust with? She says,” with brands and celebrities. »
Yes, celebrities are often rich, but not because they participated in the get-rich-quick scheme or made a smart investment in some obscure product. They often have financial advisors who help them manage and grow their wealth – and those advisors don’t tell them to accumulate bitcoin.
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Companies use celebrities to try to sell their products because they know they can work. According to a 2012 Harvard Business School study, sports pros led to a 4% increase in sales. Several studies have shown that celebrity endorsement ads raise stock prices.
When it comes to finance in particular, the rich and famous aren’t the most influential in consumers’ lives, but they do make a difference. A survey conducted by Morning Consult in 2021 found that 20% of investors and 45% of cryptocurrency owners would invest in cryptocurrency if it was endorsed by celebrities (even though they are still behind financial advisors, family members or friends and trade journalists). Younger consumers may also be affected by fame — CreditCards.com found that 28% of Gen Zers and 24% of Millennials said they seek financial advice from social media and influencers.
Shiv Gupta, digital marketing expert and director of consulting firm Quantum, explained that as people no longer hold back in front of network television on Friday nights, audiences captivated by advertising and brands are increasingly relying on celebrities and influencers to connect with consumers. Scene. . “The channels are narrowing,” he said. A celebrity can pitch your product to consumers through their existing audience and areas of influence. You can see how it went with the encryption. “You had a nerdsphere or geeksphere pushing the concept of cryptocurrency as something that has potential,” Gupta said. “The next step was Larry David and everyone else who came and started discussing cryptocurrencies. It was like saying, ‘Look, this is common. »
Circulating a financial product makes it more comfortable for consumers, giving them the impression that it is natural to try. It can also make them forget about risks, even in high stakes spaces.
“Supporting celebrity brands is nothing new, we’ve seen that for decades. Selling cryptocurrency and NFT is obviously much more complex and I would say it requires more professional responsibility than selling typical consumer goods.” “If you agree with potato chips and energy drinks, that’s another thing.”
If you bought a bag of chips because a rep said so and it turns out disgusting, it doesn’t matter. But if you do a reverse mortgage, which regulators are warning about in the ads, and accidentally lose your house because Tom Selleck said so, it’s not good. The focus is on young people and cryptocurrency now, but no generation is immune.
“There are those who say, ‘Well, I love Tom Selleck, I grew up with Tom Selleck, and he seems like a famous guy. After all, fight crime Magnum IP Gupta said. “It’s a generational thing, it just grows up a little bit with you.”
You probably don’t listen to celebrities talking about money
If you had asked me in 2004 if you had listened to the man from ko or the man from Goodwill hunting What to do with my money, I hope not to say that either, but I probably would Goodwill hunting my friend. Turns out that 2004 I had to be wrong. In fact, you should not listen to any of the files Goodwill hunting Guys because Ben Affleck is into sports betting which often isn’t ideal for the end user’s wallet either.
In the end, I might have to say ko The man, Ben McKenzie. He has a few points about listening to celebrities about money, and in particular, cryptocurrencies… which is something you shouldn’t do. McKenzie described celebrities pumping cryptocurrency as a “moral disaster” in an article published in 2021 for Slate along with journalist Jacob Silverman. “These rich and famous actors may also ask for payday loans or seat their audience at a fake blackjack table,” they wrote. (To be fair, McKenzie also has something to gain here—he and Silverman are writing a book on cryptocurrency scams right now that they likely get paid for, and he has made a name for himself in the fight against cryptocurrency.)
Celebrities may not put their fans’ best financial interests at heart. I love Reese Witherspoon, but His encrypted tweet, at least for now, seems pretty irresponsible. “At the end of the day, it’s all about the money,” Andelich said.
It’s not just that celebrities are encouraging unnecessary risks. Kim Kardashian and Floyd Mayweather may have been part of the coding pump and vacuum system. The boxer was no stranger to crypto scandals: In 2018, he and music producer DJ Khaled settled accusations from the Securities and Exchange Commission for failing to disclose their payment to promote initial coin offerings, or ICOs, such a dubious trend you rarely hear. . More about it. Actor Steven Seagal also got into trouble over something similar.
It’s easy and tempting to ignore a lot of this – of course, celebrities shouldn’t be a reliable source of financial information. Regulators have a say here on consumer protection – proponents are expected to be honest about their compensation. But celebrities often sneak into our way of thinking about money in a rather uncomfortable way. If you think about it for a moment, celebrities who associate themselves with major names in finance are a little bit sloppy, well, huh. Jennifer Garner looks good but she’s not rich either just because she’s so smart with her Capital One card.
Celebrities and financial brands are teaming up to sell people a lifestyle, an aspiration for wealth that may not be realistic. Celebrities lend their reputation to products that can be questioned. They often do so without acknowledging their financial interests — Tom Brady is not just a spokesperson for crypto exchange FTX, but an investor in the company — or while ignoring that they might take a risk, perhaps the average person shouldn’t. And the downside risks to its reputation, if the project starts from the grassroots, may not be great.
“It’s not like Tom Brady has stopped doing anything and now he’s just a coding boy you know? People care for a minute,” Andjelic said. »
Except, of course, the people who are lost.
We live in a world that is constantly trying to deceive and deceive us, where we are always surrounded by frauds, big and small. It may seem impossible to navigate. Every two weeks, join Emily Stewart in examining all the little ways our economies control and manipulate the average person. you welcome in big pressure.
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