Fintech firms the world over succeed or fail based on word of mouth—no matter how revolutionary the product or cutting-edge the technology, if no one has heard of a brand, that drastically limits its ability to survive and thrive. And for companies with aspirations to become household names, not just confined to finance work circles, there’s no better spokesperson than a celebrity already known and beloved by the general public.
Accordingly, the last several years have seen a veritable arms race for high-profile actors and entertainers, with companies dealing in crypto and NFTs rushing to scoop up endorsements from celebrity investors. Results have been dramatic: after racking up investments from Gwyneth Paltrow, Snoop Dogg, and Justin Bieber, cashless payment fintech MoonPay saw a startling rise in its valuation. According to a Morning Consult survey, 45% of crypto owners would trust a famous person’s recommendation as to what currency to purchase.
Of course, celebrity endorsements may be successful for whipping up public interest, but sometimes that popularity can manifest as the wrong sort of attention. British regulatory body the Financial Conduct Authority recently pledged a crackdown on reckless celebrity endorsements of cryptocurrencies, decrying Kim Kardashian’s promotion of Ethereum Max as misleading and irresponsible.