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The power that influencers have in affecting public perception and therefore causing alterations in the value of a product, service, asset or currency has increased to the point where they can crash or uplift entire markets with their content and takes.\u00a0<\/p>\n
In 2021, Elon Musk could send the price of the famous memecoin Dogecoin (DOGE) up by 50% with just a single tweet. He still has a lot of power over the crypto markets, and several people in the cryptocurrency world and traditional finance have accused Musk of manipulating the cryptocurrency market with just a few tweets.<\/p>\n
Other popular influencers could cause similar effects through social media posts or promotional videos. But why do they have so much power? Well, it\u2019s all down to the power of influencer marketing; research shows that approximately 80% of consumers are more likely to buy products promoted by influencers instead of ads.<\/p>\n
Related:<\/em><\/strong> <\/em><\/strong>Taking down crypto influencers is one step that would help to heal the market<\/em><\/strong><\/p>\n In the case of the crypto market, digital advertising has been partially irrelevant throughout the years due to multiple factors, the main one being that Google, Twitter and other social media platforms had banned crypto ads in the past. Therefore, promoting coins\/tokens via influencers was the main marketing alternative for many cryptocurrency projects.<\/p>\n Let\u2019s take FTX, for example \u2014 one of the top three crypto exchanges. It went from being an almost $40 billion crypto powerhouse to filing for bankruptcy. Its founder, Sam Bankman-Fried, has been seen posting strange, cryptic messages on Twitter following the FTX meltdown. Why? Who knows. But it\u2019s leaving users, investors and even FTX employees confused.<\/p>\n With these ongoing shady and unclear messages, he is just adding more fuel to speculations and all sorts of theories \u2014 which only worsens the current scenario for the cryptocurrency industry.<\/p>\n The first, most important problem? Influencers\u2019 advice and opinions are not always absolute or necessarily correct.<\/p>\n Even more, some of these influencers might not even have any familiarity or knowledge whatsoever about the product\/asset\/coin they\u2019re promoting. Such was the case with reality TV star Kim Kardashian, who received $250,000 for promoting EthereumMax, a smart contract-enabled platform for building decentralized applications. Kardashian then had to pay $1.26 million in penalties, disgorgement and interest to the United States Securities and Exchange Commission.<\/p>\n \u201cThis case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn\u2019t mean that those investment products are right for all investors,” SEC Chairman Gary Gensler said in a statement at the time.<\/p>\n This raises an obvious question that a lot of people do not seem to ask themselves: Should we really buy something from a TV reality star who has never had anything to do with cryptocurrencies?<\/em><\/p>\n Another problem with influencers that needs to be mentioned is that a lot of them can be found violating advertising rules and misleading investors with shady products\/assets. In the case of India, crypto influencers are responsible for 92% of crypto ad violations.<\/p>\n The solution to these problems: Always DYOR \u2014 do your own research. It\u2019s understandable that not everybody has the time to investigate a project or currency before investing in it, but it\u2019s not reasonable to blindly follow advice from crypto influencers, either. Investors should take the time to personally check a potential investment instrument and find answers to the main questions that concern them.<\/p>\n Influencers have been heavily criticized for pumping or dumping cryptocurrencies in which they have a position in the market. For example, in 2017, the late John McAfee admitted to charging crypto projects more than $100,000 per tweet to promote their initial coin offerings, as well as taking a considerable percentage of their token supplies.<\/p>\n 1\/ Let\u2019s review all the direct scams Bitboy has worked with in the past. Just in case you forgot here is the flyer with how much he charges. <\/p>\n I received this a while back by posing as a project interested in a promotion.Why we shouldn\u2019t follow advice from influencers<\/h2>\n
The power opinion leaders have in today\u2019s markets<\/h2>\n
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