Since the collapse of FTX last year, several celebrities have been sued for their alleged roles in the exchange's promotion.
A $1 billion class-action lawsuit was filed in March against eight people who were accused of promoting a fraudulent digital currency.
According to cointelegraph, it has served as a wake-up call for those that endorse firms that their followers can take legal action against them in the future if they don't like them.
Tiffany Fong, who gained fame by interviewing former FTX CEO Sam Bankman- Fried after the collapse, doesn't like endorsing firms on her social media.
Fong doesn't want to promote anything that could potentially hurt customers.
She said she hasn't responded to most of the offers as she believes the risks outweigh the reward.
“I don’t know how much money I’ve turned down; I’m just not entertaining it at the moment.”
Defi Dad said that he had been offered an opportunity to have his content sponsored.
I don't know how much money I turned down by not working with FTX but it was the best decision in the long run.
Fears from both sides of the business have been noticed.
funny to see some of these influencers risking their entire reputation creating these for quick $$$
— ZachXBT (@zachxbt) May 6, 2023
In an interview with Cointelegraph, the CEO and founder of Luna PR said that it's not only theinfluencers who are becoming more cautious about endorsement deals.
“The increased scrutiny and legal concerns have made both influencers and crypto firms more careful in their collaborations.”
There has been an overall decline in influencer deals as a result of the extended crypto winter.
After the collapse of FTX, it has become more difficult to get A-listers to promote the digital currency.
“A lot of more well-established influencers seem to have taken a step back and considered the way they offer services.”
Fees being charged when these deals are executed is insane.
For sponsorship deals, we have seen the price of the deals go as high as 6 figures. The celebrities endorsing web3 projects charge in the millions.
The former SEC chief warned about prosecutions for manipulation of prices.
Mason Versluis, who posts as Crypto Mason to over a million followers on TikTok, has seen an increase in brand deals that are not in line with his beliefs.
According to Versluis, the FTX saga has led to the emergence of new businesses in the space, as well as the creation of new brands.
“A lot of people were reminded about crypto and building crypto businesses when SBF made headlines globally.”
MegBzk suggests that people should conduct their own research before endorsing a company.
She said that you need to know who you are working with and have people look at them.
Is it ethical to improve trust in artificial intelligence?
