Star Power and Crypto: Fading Magnetism
September 2, 2022
Cryptocurrencies are a mystery to most people. One would think they would have gone by the wayside, however, faithful followers are still chugging along mining coins. Unfortunately social media influencers who are experts in digital currencies were paid to promote them and they lied to their views. The guilt has now set in says NBC News in “Some Social Media Influencers Are Being Paid Thousands To Enforce Cryptocurrency Projects.”
Ben Armstrong of the BitBoy Crypto YouTube channel was paid to promote DistX as his “coin of choice.” DistX turned out to be a scam and investors were left high and dry. The currency is now worth less than a penny. Armstrong and other influencers are paid tens of thousands of dollars to promote cryptocurrencies.
Armstrong stated he was upfront about products he was paid to promote. Unfortunately many YouTubers are not as honest as him. He also refunded investors of DistX with his promotion fees. Years ago YouTubers did not have to disclose they were paid to promote products, but now they are supposed to state when content is sponsored. Some bad-acting YouTubers fail to follow guidelines.
Politicians are even getting involved:
“But state regulators warn that there are still influencers who lack transparency. Joe Rotunda, the director of the enforcement division of the Texas State Securities Board, said he’s seen paid promotions that are not only undisclosed but are pushing fraudulent ventures.
Rotunda and a team of regulators recently filed enforcement actions against two casinos in the metaverse, the new digital frontier where users can attend virtual concerts, purchase digital assets or even gamble at a casino.”
Cryptocurrencies are predicted to fail even more in the coming years. Why not stick to better forms of investment than risking it all on “get rich quick schemes?” Will the endorsers find their actions a future legal issue?
Whitney Grace, August September 2, 2022
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