Skip to main content

Celebrities Buy Crypto and Say You Should Too

Hollywood’s glitterati … they’re just like us! They eat food, go out for ice cream, and invest in crytpo. Unfortunately, that’s where the comparison ends. Most of us are not rich and famous enough to lean on our celebrity status to fuel these outlays.

Matt Damon’s lucrative endorsement to recite Latin proverbs like, “Fortune favors the brave,” and Reese Witherspoon’s January 11 advisory to get with the times and plan for our digital lives are turning into online fodder in early 2022. Some stars have even broken securities laws (hello Kim Kardashian!) as they encourage ill-informed investors to jump into the speculative digital product pool.

Related Videos
Phone showing cryptocurrency.

Not only do celebrity cryptocurrency promotions motivate people to plunge into investments where they can easily hemorrhage losses, they’re banking on their fame to potentially earn a quick fortune themselves while the regular Joe may not be able to afford losing 50% of their investment in 12 weeks.

Bitcoin, for example, the world’s largest cryptocurrency by market value and therefore the most ‘stable’ cryptocurrency, closed out a rough January 2022. Bitcoin’s value dipped by half in less than three months, falling to as low as $33,000 from a record of almost $69,000. This is the coinage’s worst start to a year since 2018’s “crypto winter” when the digital money dropped by 80% in value.

As the Fed continues to raise rates to combat inflation, it hit the entire crypto ecosystem, from meme coins to crypto exchanges. Ethereum was also down 35% from its previous apex on January 20.

In the (near) future, every person will have a parallel digital identity. Avatars, crypto wallets, digital goods will be the norm. Are you planning for this?

— Reese Witherspoon (@ReeseW) January 11, 2022

This roller coaster may be fun on the way up, but can cause people to lose cars, homes, and investment in higher education when it’s not taken on responsibly. This explains why Witherspoon’s tweet earned backlash and illuminates the reason Damon was mocked for promoting irresponsible behavior amidst their fans. At least The Martian star didn’t resort to outright fraud.

Related Guides

In 2018, boxer Floyd Mayweather Jr. tweeted that “You can call me Floyd Crypto Mayweather from now on,” after promoting Centra Tech Inc., a company that marketed itself as a debit card provider that allowed cryptocurrency purchases at any businesses accepting Visa and MasterCard.

The Securities and Exchange Commission, however, found that Mayweather failed to disclose promotional payments from three initial coin offerings, including $100,000 from Centra Tech Inc. Along the way music producer Khaled Khaled, aka DJ Khaled, failed to disclose a $50,000 payment from Centra Tech, which he touted on his social media accounts as a “Game changer.” Each music star was fined (Mayweather over $600,000 and Khaled over $150,000), but they did avoid prison, where the founders of Centra ended up after their company was found to be utterly fabricated.

You can call me Floyd Crypto Mayweather from now on #HubiiNetwork #ICO starts tomorrow! Smart contracts for sports?! #CryptoMediaGroup #ad🤑

— Floyd Mayweather (@FloydMayweather) August 23, 2017

Even when they’re apparently doing something good, celebrities have shown themselves willing to try and make a few million bucks off of the action. ​​Academy Award-winning actress and Goop founder Gwyneth Paltrow participated in a $200 million debt and equity financing round for TeraWulf, a crypto mining company that aspired to unearth Bitcoin using zero-carbon energy. She celebrated this investment in December with a humblebrag $500,000 Bitcoin giveaway to her 2.7 million Twitter followers.

“Buying crypto has often felt exclusionary. In order to democratize who can participate, @CashApp is now making it easy to gift Bitcoin. I’m giving out $500k worth of Bitcoin for the holidays.”

There’s no word on who won, or how much CashApp paid Paltrow to tweet about them, but she wasn’t the first.

Fame and money are both lures and together, can become barbed hooks among those desperate for a life of ease and freedom from financial worry. Investment has proven to be a tried and true way to build wealth. It’s also always been a route to catastrophic losses. The lesson remains the same, as we find from another Roman saying, this from Marcus Aurelius’ Meditations.

“You have power over your mind — not outside events. Realize this, and you will find strength.”

Editors' Recommendations

Why experts say the FTX failure is a ‘turning point’ and not the end for crypto
Experts say this is what's next for crypto after its catastrophic losses
Line graph showing crashing prices.

The FTX bankruptcy filing on Friday last week culminated in a run on customer deposits that exposed deep fissures in the cryptocurrency market. After a CoinDesk report revealed that FTX's financial stability provided by hedge fund Alameda Research was simply an investment in FTX-created FTT tokens, Binance announced that it was selling off its $580 million investment in FTX, setting off a major selloff. This not only resulted in FTX’s over $30 billion collapse and the resignation of its founder, Sam Bankman-Fried, but opened the door for now-ongoing Justice Department and Securities and Exchange Commission investigations. This has done little, however, to stem a spreading crypto contagion.

Even after Bitcoin and Ethereum lost more than 70% from their peak values over the last year, Forbes reports that JPMorgan analysts warned that the FTX fallout could result in another 25% drop in value (simultaneously announcing further investment in crypto). Meanwhile, cryptocurrency lender BlockFi Inc. halted customer withdrawals after conceding “significant exposure” to FTX (per The Wall Street Journal). The crypto creditor now plans large layoffs while Blockfi bankruptcy may be around the corner.

Read more
Big Short’s Michael Burry reveals why crypto’s problems aren’t going away
Burry anticipated the crypto collapse the same way he did the real estate crash
Michael Burry sketch.

In news of the “Duh” variety, mega investor Michael Burry has been on record over the past year advising people to get out of the crypto market. A 77% drop in Bitcoin value in the last year (per Fortune) and FTX’s $32 billion crash (per Barron’s) seem to indicate that the financial seer might have been on the right track.

Burry is already famous for his prominent role in Michael Lewis’ The Big Short (and subsequent portrayal by Christian Bale in the subsequent Adam McKay film) as the man who shorted a booming real estate market before its 2008 crash almost caused another Great Depression. In 2022, Burry followed his doomsday prophecy for real estate with another prediction: the crypto crash.

Read more
Netflix is about to mess with (almost) everyone’s account access, billing
These are the changes coming to your Netflix account
Netflix logo on tv with red back lighting

The streaming wars have taken another casualty—your bank account. During a quarterly earnings call on Tuesday, October 18, Netflix announced that it would be cracking down on password sharers. Starting sometime next year, the service will charge an extra fee for password sharing. Keep reading to learn more about this Netflix account policy change and what it means for all of the password thieves out there.

Netflix is cracking down on password sharing
In an effort to reduce the number of freeloading viewers (and increase their profits), Netflix is planning a new policy for shared accounts. In early 2023, the streaming platform will begin charging accounts for password sharing. The new system will tack on fees for “extra member” subaccounts if someone outside of the household uses the account.

Read more