Why Do Celebrities Promote Cryptocurrency?

Anyone who has a social media account, or even just internet access, knows that cryptocurrency is a hot topic among celebrities. Whether its Elon Musk with his Dogecoin, or Kim Kardashian and EMAX, it seems like celebrities just can’t stop getting involved in crypto.

But why do they get involved in crypto? And should you take their advice? Read on to have all your questions answered and more.

Why Celebrities Promote Cryptocurrency

The answer to this question is actually surprisingly easy. Celebrities promote cryptocurrency because it makes them money.

Sometimes the money they make is direct, like in the case of Kim Kardashian, who was paid thousands of dollars just to post a cryptocurrency in her story on Instagram. In the case of Elon Musk, while he wasn’t directly paid to promote Dogecoin, it is likely that he had heavily invested in the coin, and when he tweeted about it, the value increased, and he was able to make a quick buck on his investment.

The point is, celebrities don’t promote cryptocurrency because it is in your best interest to buy it, or because they truly believe in the project. This can sometimes be the case, but for the most part, know that a celebrity mentions a cryptocurrency because it directly benefits them financially in one way or another and that they don’t have your best interests in mind.

Is Mentioning Cryptocurrency on Social Media Legal?

Most celebrities mention their cryptocurrency support on social media like Twitter, Instagram, or Facebook, but it’s important to know that them doing so is not always legal.

In the case we mentioned above about Kim Kardashian, she was actually fined by the SEC for mentioning a cryptocurrency on her Instagram. She wasn’t fined because she was promoting cryptocurrency, but because she failed to include the legal disclaimer stating she had been paid by a company to do so.

Many have also joined a court case to sue Elon Musk over his Dogecoin claims which ended up losing them lots of money as they invested based on his advice. In both cases, the posting of the cryptocurrency on social media was legal, however, there are very strict regulations in place on what celebrities can and can’t say as they promote a project.

Additionally, regulations in conjunction with cryptocurrency are changing around the world. Many projects have been shut down because of these changing regulations, and as a result, promoting these products has become illegal, and could lead to fines or even jail time if you post about them.

Related: Kim Kardashian Sued for Crypto Scam

Should You Promote a Cryptocurrency on Your Social Media Account?

Whether or not you are a celebrity, you might toy with the idea of promoting a cryptocurrency on your social media account. But is this legal?

Unfortunately, in most cases it is not. On Meta-owned platforms like Facebook and Instagram, you must receive written permission prior to promoting a project. On TikTok, all financial services promoting was banned on the app in 2021 unless you are specifically allowed to do so in advance. This means it is probably not a good idea to promote cryptocurrency on your social media.

Reddit is one of the few websites which does allow discussion about cryptocurrency, but specific rules must be followed and if you just start promoting cryptocurrency without the permission of the subreddit thread you are posting in, you could find yourself blocked or banned from the site.

Twitter is another website which supposedly does allow some cryptocurrency promotion, but you still need to get permission from the platform before you begin doing so. Therefore, it is probably a good idea to leave cryptocurrency promotion away from your social media, even if a company does approach you and offer you a large sum of money.

If you do find that their offer is tempting, ensure you contact the platform and get permission before you begin promoting or you may lose the account you worked hard to build.

Related: Elon Musk Sued in Dogecoin Lawsuit

Should You Buy Cryptocurrencies Promoted by Celebrities?

It’s easy to see your favorite actor or singer promoting a coin and think that you should buy said cryptocurrency. It’s important to know, however, that often these celebrities do very little research about the coin they are promoting before they promote it, and they usually aren’t personally invested. (Or if they are, they stand to make money off of it by promoting it!)

This means that no matter who is promoting a cryptocurrency, you are more likely to buy a scam coin than you are to make money on the project. In the cryptocurrency world, the scams far outweigh the non-scam coins and are one of the reasons many people are scared to buy cryptocurrency—because they’ve heard a horror story about someone who has lost everything.

Before you put your money in any cryptocurrency project you should do your own research. And if you don’t understand the cryptocurrency world enough to research on your own, you should talk to someone you trust, such as a personal financial advisor with experience in cryptocurrency before you buy.

If you are still unsure, then it is probably better to put your money in a fiat investment than take a risk on a cryptocurrency promoted by a celebrity.

What Cryptocurrencies Are Safe?

Unfortunately, no cryptocurrencies are considered safe investments. They all carry a risk of some form or another, even if they are stablecoins. Here at MintDice.com, you can find information about projects which are safer, or more trusted, but know that they are still not considered safe.

Remember, anyone promoting a cryptocurrency has a reason to do so, whether they are a celebrity or just an TikTok star. Never take financial advice from someone who is famous and be sure to do your own due diligence before investing.

While no cryptocurrency is safe, if you want to get invested in the cryptocurrency world, Ethereum and Bitcoin are considered to be slightly safer than other projects due to how long they are around, their protocols, and their large backing. But know that there is still a chance you invest and lose everything.

You May Also Enjoy: How to Learn About Cryptocurrency

This article was brought to you by the Bitcoin Sportsbook on MintDice. Originally posted to MintDice.com.