The Wake-Up Call
Ever since the dramatic fall of FTX, crypto influencers have been playing the long game when it comes to endorsements. Gone are the days of quick cash grabs; now, the thought of a lawsuit seems to rain on their parade. A $1 billion class-action lawsuit was filed in March against eight influencers for promoting what many deemed ‘crypto fraud’ without disclosing their compensation. Talk about a wake-up call!
Tiffany Fong: The Cautious Star
Take Tiffany Fong, for instance. This crypto vlogger shot to fame after an explosive interview with the notorious Sam Bankman-Fried, the former FTX CEO. These days, though, she’s shying away from endorsing crypto companies. “Since so many once reputable companies have collapsed, I don’t want to promote anything that could potentially rug customers,” Fong explained. You can’t argue with her logic—better safe than filing a lawsuit.
The Lost Opportunities
It’s not merely a matter of principle for influencers; it’s also financial. Consider DeFi Dad, who openly admits to turning down an enticing deal with FTX. “I have no idea how much money I probably turned down, but it was the best decision in retrospect,” he mentioned. Sometimes, turning down a golden egg feels better than scrambling around a pan of legal troubles!
Caution on All Sides
Trade agencies have also noted that influences and brand deals are fraught with caution. According to Nikita Sachdev, CEO of Luna PR, the scrutiny surrounding this niche has escalated tremendously. Influencers and crypto companies are now both tiptoeing around potential collaborations, concerned about reputations and bottom lines. Scrap the cash; let’s save our skins!
High Stakes, High Fees
It’s fascinating to think that while influencers are becoming cautious, the fees for endorsements are skyrocketing. Some crypto influencers charge six figures for sponsorship deals, while top-tier celebrities can demand millions. It’s like a poker game where the stakes keep rising—only this time, the chips are represented by your reputation.
The Silver Lining: Research and Responsibility
Amidst the chaos, some influencers suggest that the best way to protect oneself is by doing thorough research before endorsing any company. MegBzk warns, “You need to know inside and out who you are working with, to the best of your ability and have multiple people look at them.” Investing time in research may just be the best crypto investment yet!
