This year, the popularity of NFTs and cryptocurrencies has surged, making everyone want to participate, including celebrities. They are forging their own NFT and getting sponsorship from cryptocurrency endorsements. Although NFT may continue to prevail, as the market becomes more regulated, celebrity NFT may soon end.
At the end of 2020 and the beginning of 2021, huge interest from the public hit the cryptocurrency field. This craze is mainly aimed at NFTs. Its popularity has surged and has spawned countless artworks, trading cards and images. Every creator hopes that their NFTs will be one of the few lucky ones to sell millions of dollars in the NFT market. One of the children.
Some world celebrities including Snoop Dogg, Rob Gronkowski and Lindsay Lohan have created their own NFTs, each selling for hundreds of thousands of dollars. This represents a major movement in the field of cryptocurrency, because things related to cryptocurrency have finally become mainstream.
Although many people criticize celebrity NFTs for blatantly plundering cash, on the whole, they are positive for cryptocurrency and blockchain and will not disappear silently anytime soon.
One of the biggest reasons why celebrities will continue to participate in NFTs is the potential profit. A typical NFT on Ethereum requires a cost of one or two dollars, but for celebrities or influential people, it may bring hundreds of thousands of dollars in revenue. They may get as much profit from an NFT sale as they get from the release of an album or a movie. As long as the profits they make are greater than the cost of coinage, celebrities and their managers will continue to reap the rewards.
In addition, due to the recent popularity of NFT and NFT markets, millions of users have begun to flock to cryptocurrencies to purchase their favorite celebrity NFTs. They must buy Ethereum, set up a MetaMask account, and interact with smart contracts. These are part of the DeFi ecosystem and will eventually find a way to other decentralized applications, which will further promote the spread of DeFi throughout our society.
The last reason for the continued popularity of celebrity NFTs is their simplicity, novelty, and public admiration. For example, Major League Baseball player Justin Turner gave a free NFT as a thank you to all fans who voted for him to become an All-Star Game player. This way of motivating fans to interact with their favorite athletes and stars will continue. For Turner and his fans, this is simple and meaningful, even if it has no monetary value.
Although celebrities will continue to forge NFTs and become part of the ecosystem, they will not stay in this field for too long.
Recently, many scam projects have begun hiring celebrities to promote their cryptocurrency on Twitter. These celebrities may not know that they are promoting scams, but such activities usually result in celebrity fans losing money on these projects.
For example, Kim Kardashian and boxer Floyd Mayweather were recently hired to promote a token called Ethereum Max, which has a supply of 2 trillion, and uses the name of Ethereum to deceive unsuspecting investors and get them I thought I was buying Ethereum. Since the participation of these celebrities, the coin has fallen by more than 80%.
Such endorsements are not only immoral, they can also be illegal. In most jurisdictions, it is illegal to provide financial advice without proper permission, and it can be said that these celebrities are providing financial advice to their fans. Floyd Mayweather was prosecuted for fraud after he promoted the fraudulent currency Stox during the last bull market. Although the case was dismissed, it conveyed an important message: even if cryptocurrencies are not regulated, it does not mean that fraud is legal. Once the market establishes regulations, endorsements for cryptocurrencies are likely to end.
At first glance, celebrity NFTs seem to have no contribution to the entire cryptocurrency market, but this is not the case. They provide benefits to celebrities as a way to make money or reward fans, and provide fans with the opportunity to own unique items. And, most importantly, it promotes the diffusion and use of blockchain technology, which will promote the growth and innovation of the entire ecosystem.
Image source: Internet
Authors: Lincoln Murr, Amy Liu
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/celebrity-nft-is-released-hotly-just-a-flash-in-the-pan/
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