These days, more and more celebrity influencers are starring in cryptocurrency advertisements. From Paris Hilton to Kim Kardashian, cryptocurrency developers are using their large fanbases to build trust. However, it’s very dangerous that celebrities, who aren’t experts in investments, are making crypto seem cool. After all, it’s unlikely that their massive followings have an understanding of such a volatile asset class.
To start off, they make crypto seem like a cool idea rather an actual investment. Studies show that about 40 percent of crypto holders around the world are young adults. That means people between the ages of 18 and 34. Moreover, this shows that a large chunk of crypto holders are cupper connected with social media. This leaves them at a higher risk of being swayed by influencers.
While Kim Kardashian is a famous culprit for advertising brands she has little knowledge about, there’s more to it. This trend is quite popular in India, as influencers promote cryptocurrencies as if they’re mere apparel like shoes or handbags. In doing so, they are promoting a risky investment that followers are unaware about.
In fact, in India, financial awareness is already lacking as it is. When you add complex concepts like cryptocurrency and blockchain to the mix, things get risky. Because of crypto’s non-physical nature, it seems like a harmless internet game to much of the youth.
When more influencers get on the bandwagon to seem like they know what kind of investment crypto is, it could form a trust bubble. This means people will develop a blind trust in something that they don’t exactly comprehend the consequences of. When the bubble eventually bursts, it could completely change customers’ behavior.
Nevertheless, it can be difficult to control influencers and hold them up to a standard. After all, the consumer must also do their research before investing in something new. There’s nothing wrong with having a bigger appetite for risk. But remember that when the risk is uninformed, it can be potentially dangerous.
Similarly, crypto developers are enjoying the benefit of still being an unregulated market. While this isn’t the case in the US, they can get away with false advertising in many countries. Sure, considering that crypto is new, it should use fresh faces to promote their brand. Nevertheless, the risk lies in how crypto developers fail to explicitly mention the risks involved. Because of the lack of regulation in India, there’s more room for consumers to fall for scams.
As social media gains more and more influence in people’s lives, it’s crucial that consumers use their judgment. They should remember to take everything with a grain of salt before believing anything. Meanwhile, influencers need to understand their responsibility as public figures to promote things that are safe.