2022: The Year Celebrity Crypto Endorsements Went Wrong – Who Faced the Backlash?

2022 – remember that year in crypto? Volatility was the name of the game, and for celebrities who jumped on the crypto bandwagon, it turned out to be a rollercoaster ride they probably wish they’d skipped. While crypto firms were eager to tap into celebrity influence to reach the masses, the year unfolded into a stark lesson: not all endorsements are created equal, and the crypto winter bites hard, especially for those promoting potentially shaky ventures.

The Crypto Endorsement Reckoning: Who Faced the Music?

From Hollywood A-listers to sports icons, 2022 saw a wave of celebrities venture into the crypto world, lending their names and faces to promote various firms and projects. But as the crypto market took a nosedive, many of these endorsements turned sour, landing celebrities in hot water. Let’s dive into who faced the heat:

• The Lawsuit Brigade: Several celebrities found themselves named in class-action lawsuits, accused of promoting now-defunct or struggling crypto entities without proper due diligence. This is a major point – were these celebrities just naive, or were they knowingly pushing risky investments?
• Social Media Scorn: Beyond legal battles, many celebrities faced relentless mockery and public criticism on social media for their crypto affiliations. The internet never forgets, and screenshots of promotional tweets and commercials resurfaced as the market crashed, turning endorsements into memes of regret.

FTX Fiasco: A Star-Studded Disaster

The collapse of FTX, once a giant in the crypto exchange world, became a central point in the celebrity endorsement saga. Several high-profile figures had partnered with FTX, and when the exchange imploded, the backlash was swift and severe.

• Larry David: The comedic genius behind Seinfeld appeared in a Super Bowl ad for FTX, urging viewers not to miss out. Now, he’s part of a class-action lawsuit alleging promotion of FTX to inexperienced investors without proper vetting. Ouch.
• Naomi Osaka, Shaquille O’Neal, Stephen Curry, Tom Brady: These sports legends also endorsed FTX and find themselves in the same boat as Larry David – named in lawsuits for their promotional activities. The sheer star power associated with FTX amplified the shockwaves when it all came crashing down.

The FTX collapse highlighted the risks associated with celebrity crypto endorsements.

Beyond FTX: Other Celebrities Feeling the Crypto Pinch

The FTX saga wasn’t the only source of celebrity crypto endorsement woes. Other promotions also drew negative attention:

• Matt Damon & Crypto.com: Remember Damon’s “Fortune Favors the Brave” Crypto.com campaign? It was heavily criticized and even satirized by South Park. While not facing lawsuits directly related to Crypto.com’s solvency, Damon became a poster child for perceived celebrity overreach in crypto promotion.
• Floyd Mayweather & EthereumMax: Mayweather was also caught in the crypto crossfire, named in a lawsuit for promoting EthereumMax. Though this particular lawsuit was dismissed, it underscored the legal risks associated with crypto endorsements.
• Snoop Dogg, Madonna, Justin Bieber, and the Bored Ape Yacht Club (BAYC) NFTs: This group of music icons faced a class-action lawsuit for allegedly promoting BAYC NFTs. The lawsuit, targeting over 40 defendants including Serena Williams and Gwyneth Paltrow, highlights the broad net cast in the pursuit of accountability for crypto and NFT promotions.

Soccer Legends: The Exception to the Rule?

Interestingly, the article points out a curious observation: soccer legends seemed to have largely escaped the backlash that actors and sports stars faced. Why might this be the case? It’s not explicitly stated, but we can speculate:

• Regional Focus: Perhaps soccer legends’ endorsements were more regionally focused, targeting markets less affected by the immediate crypto crash narrative in the Western media.
• Different Projects: It’s possible they promoted different types of crypto projects or firms that didn’t experience the same level of collapse as FTX or face the same legal scrutiny.
• Lower Visibility in Backlash Circles: It could also be a matter of visibility – perhaps the backlash narrative in English-speaking social media and news outlets was less focused on soccer endorsements.

Further investigation would be needed to definitively explain this apparent difference, but it’s an intriguing point raised by the original content.

Not All Doom and Gloom: Positive Celebrity Crypto Engagements

It’s crucial to note that not all celebrity crypto endorsements turned into PR nightmares. Some collaborations were viewed positively, or at least didn’t trigger the same level of backlash. Let’s look at a couple of examples:

• Khaby Lame & Binance: TikTok sensation Khaby Lame’s partnership with Binance as a global ambassador was received well by the crypto community. This was largely seen as Binance’s effort to promote Web3 awareness and adoption to a broader audience, leveraging Lame’s relatable and humorous style. It focused on education and accessibility rather than pushing specific investments.
• Steve Aoki & DraftKings NFT Marketplace: DJ Steve Aoki’s role as a brand ambassador for DraftKings’ NFT marketplace was another example of a seemingly smoother celebrity crypto integration. DraftKings, a well-established sports betting and fantasy sports operator, venturing into NFTs with Aoki, perhaps carried less of the high-risk perception associated with some other crypto platforms.

Key Takeaways for Celebrity Crypto Endorsements: Lessons Learned from 2022

The celebrity crypto endorsement saga of 2022 offers valuable lessons for celebrities, crypto firms, and the public alike:

• Due Diligence is Paramount: For celebrities, simply taking a paycheck for a crypto promotion is no longer enough. Thorough due diligence on the firms and projects they endorse is crucial to avoid legal and reputational damage. Their audience trusts their judgment, and that trust carries responsibility.
• Transparency and Risk Disclosure: Crypto firms need to be transparent about the risks involved in crypto investments, regardless of celebrity endorsements. Promotions should focus on education and responsible engagement, not just hype and FOMO (Fear Of Missing Out).
• The Public is Wiser: The crypto crash of 2022 has likely made the public more skeptical of celebrity-driven crypto endorsements. Consumers are becoming more discerning and less likely to blindly follow celebrity endorsements in the volatile crypto market.

Conclusion: Navigating the Future of Celebrity Crypto Collaborations

2022 served as a harsh but necessary lesson in the world of celebrity crypto endorsements. The year highlighted the potential pitfalls of associating fame with a highly volatile and often misunderstood asset class. While some collaborations worked out, the overwhelming narrative became one of backlash, lawsuits, and regret. Moving forward, both celebrities and crypto firms need to approach partnerships with greater caution, responsibility, and a focus on genuine value rather than just riding the hype train. The crypto space is still evolving, and the future of celebrity involvement will likely depend on learning from the missteps of 2022 and prioritizing ethical and transparent collaborations.