Cryptocurrencies have long garnered a more infamous reputation, as it has had to face off against various concerns that people have about what is good for them. And although most companies have moved past their initial grudges; they will see that cryptocurrencies are a viable option.
And for the people who are ready to take on that initial challenge, can find an excellent investment opportunity. In fact, the increased popularity of cryptocurrencies means that celebrities are getting in on it too, which ties in pretty well with Kim Kardashian and her recent run-in with the SEC.
When talking about a specific cryptocurrency on her Instagram, Kim Kardashian did not disclose that they were paying her to do so. After the SEC announced that it would be charging Kim Kardashian, the actress would have to pay almost $1.3 million.
Why This New Case is Good for Crypto Currencies
Kim Kardashian becoming coming under fire from the internet and facing consequences for her actions of promoting a very risky asset class. In the worst-case scenario, many could even consider this market manipulation.
While she has been the latest influencer to face the consequences of promoting a cryptocurrency without disclosing how they might be sponsored by them. By making this clear to the audience, they will temper their expectations and will be more careful when making their investment.
People Understand that Influencers Could Have Other Motivations
Along with showing influencers that there are consequences to not being clear about sponsorships, the new Kim Kardashian case was also very insightful for customers who are too gullible to believe most influencers online.
Most major celebrities like, DJ Khaled, Steven Segal, and Floyd Mayweather Jr. have all had their run-in with the SEC for promoting cryptocurrencies without disclosing that they were sponsorships. When high-profile cases like these break the news, people can understand that influencers are not to be trusted. They could not be sharing all of the necessary details, which means taking financial advice from anyone other than an expert in cryptocurrencies.
Raising Questions about Other Types of Promotion
While the SEC can try celebrities who have not disclosed that they are sponsored by a cryptocurrency before endorsing it, they cannot do much for unpaid endorsements. Individuals like Elon Musk, who has millions of followers on various social media, regularly tweet about dogecoin and Shiba Inu. Since Musk is one of the biggest celebrities and has a stake in both cryptocurrencies, it would not be inaccurate to say that he is engaging in market manipulation.
As the crypto market continues to grow, it is important to understand the difference between advice and endorsement. Learning that difference can help people make better decisions.