What message is the SEC sending about celebrity crypto endorsements with Kim Kardashian fine?
What message is the SEC sending about celebrity crypto endorsements with Kim Kardashian fine?
Kim Kardashian will have to pay the Securities and Exchange Commission $1.26 million. Those are the terms the reality TV star reached with the SEC to settle charges that she promoted the crypto token EthereumMax on social media without properly disclosing that she was paid $250,000 to do so.
Kardashian is one of a long list of celebrities to endorse crypto products – Lebron James and Matt Damon also come to mind. In particular, when thinking about crypto and celebrities, a lot of people think of the Matt Damon commercial for Crypto.com, that associates crypto investors with astronauts and the Wright brothers.
That commercial has become kind of iconic. From the TV show “South Park“:
Cartman: “What does Matt Damon say on that Bitcoin commercial? Fortune favors the brave!”
Clyde: “My dad said he listened to Matt Damon and lost all his money.”
While “South Park” had some fun at Damon’s expense, The Q Scores company, which tracks celebrity appeal, said he’s still popular.
Executive VP Henry Schafer says for many actors and athletes, “they’re usually very well-liked and held in high esteem in their own profession. And I think that helps to absorb any negative associations with a brand gone bad.”
The endorsement craze does appear to be cooling – crypto companies just have less money these days.
And that SEC action against Kim Kardashian may have a chilling effect, said Lee Reiners with Duke Law.
“Oh, 100% it’s a message to celebrities. I mean listen, there’s not that many bigger celebrities out there than Kim Kardashian,” Reiners said.
Kardashian admitted no wrongdoing per the terms of the SEC settlement.
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