One of the hottest endorsements for celebrities has been promoting cryptocurrency. In addition to the high payment they are probably receiving for partnering up with bitcoin companies, some big names are almost acting like financial advisors to their fanbase. That can be a risky move for the average person, who might not be able to weather an investment that isn’t FDIC insured.
With crypto prices dramatically dropping in value over the last few weeks, there is also a lot of discussion over whether it is an investment in the future or a total Ponzi scheme. If you listened to A-list stars like Gwyneth Paltrow or Matt Damon, you might think that if it’s good enough for them, then why not give it a try. But we have to remember that many celebs are sitting on a mound of cash and can afford to wait out the downturn in the market.
The only actor you might want to listen to is former OC star Ben McKenzie, who has an economics degree from the University of Virginia and is co-writing a book with journalist Jacob Silverman that criticizes the world of crypto. He has no issues with calling Damon out for his commercial with Crypto.com saying he’s “disappointed” that the Oscar winner is “taking money to do something like this.” McKenzie explained to Slate, “If you talk to a financial expert, is this the advice they’re giving you? To shill for these companies? And is it worth it? From the celebrities’ standpoint, I just think we need to reflect upon what we’re doing. We do have some obligation, and wouldn’t you feel bad if your fans lost money because you gave them bad financial advice?”
Damon isn’t the only celeb to take a public hit for promoting the financial technology, so find out who else has found themselves on the receiving end of criticism — and who is just skating by (we are looking at you, Jamie Foxx).