As the world is being introduced to ICO, celebrities, and other spotlight attracting people can’t help but climb aboard this opportunity train. Crypto Media Group has even been approaching celebrities to help and promote ICOs. This is a great strategy as we all know that celebrities can’t blow their noses without the majority of the world knowing. So many people that would benefit and be interested in ICOs will now also be introduced to it thanks to them following their favorite celebrity.
As social media is the leading way in marketing, companies look to celebrities to promote and drive publicity to ICOs as they have over thousands of followers and fans, making this ICO marketing strategy foolproof.
Leveraging Star Power
Floyd Mayweather was amongst the first renown names to be approached by the Crypto Media Group. Floyd Mayweather was seen tweeting and promoting the public about the upcoming Hubii ICO during his Floyd vs Conor campaign.
Logan Schauer, the CEO of Crypto Media Group even stated that “the company seeks to leverage social media influencers to promote ICOs to mainstream audiences outside of the core cryptocurrency community.” This will present the opportunities behind ICO to a wider arrange of audiences.
All through other celebrities such as Jamie Foxx and Paris Hilton are also promoting ICOs, a number of investors are against this marketing strategy. These investors believe that celebrities promoting ICOs will eventually cause a flood in the market and result in a “bubble”. Regulators would then need to be brought in to stabilize this situation.
There is also fear that all of these ICOs are now raising funds from a number of inexperienced investors as the price of Bitcoin is at all time highs. This is due to the fact that the Bitcion November hard fork seems unlikely now.
Investors also believe that a great number people investing in ICOs because of celebrities telling them to do so will lose a lot of their money as they would be investing because of a current trend and not of fundamental or technical reasons. Andreas Antonopoulos, an early bitcoin investor even said recently, “The worst reason to make an investment is a celebrity endorsement. Unfortunately, this tactic works, and that’s why they’re doing it.”
Although many investors are against celebrities promoting ICO, it doesn’t stop this marketing strategy as music producer DJ Khaled is the latest celebrity to join this movement. CoinDesk informs the public that in 2017 alone ICOs have raised nearly $2 billion. We don’t know how much of this was raised thanks to celebrity endorsement, we just know that $2 billion is a phenomenal number to have been raised this far.
The question that is being asked is how many of these celebrities are actually into ICOs or are just being paid to promote it? General partner at Haystack Fund, Semil Shah said that this type of “influencer marketing” isn’t illegal, but it might attract the SEC’s attention later on. (The U.S. Securities and Exchange Commission)