From Hollywood to HODL: how celebrity adoption is spurring the growth of memecoins
Celebrities are helping to shape the popularity and perception of cryptocurrency assets.
Notable personalities such as Paris Hilton, Floyd Mayweather, Jamie Foxx, and Cameron and Tyler Winklevoss have endorsed and invested in various cryptocurrencies — particularly meme coins.
Paris Hilton, an American media personality, socialite, businesswoman, model, singer, actress, and DJ, picked interest in crypto in 2016, with investments in Bitcoin and Ethereum.
Over time, her interest expanded to blockchain technology, non-fungible tokens (NFTs), and the metaverse, establishing her as a significant influencer in the NFT realm. Through active promotion and creation of NFT collections, Hilton has solidified her presence in the burgeoning NFT market.
Floyd Mayweather Jr., a retired professional boxer from the U.S. who is widely regarded as one of the greatest boxers of all time, showcased his interest in cryptocurrencies through social media endorsements of blockchain projects like Stox and Hubii Network. His Instagram posts supporting initial coin offerings (ICOs) underscore his engagement with digital assets, amplifying visibility and adoption among his followers.
Jamie Foxx, an American actor, singer, comedian, and producer, joined the cryptocurrency wave by endorsing Cobinhood’s token sale, demonstrating his support for innovative crypto ventures. The actor’s public backing of Robin Hood’s zero-fee trading platform added momentum to the project, showcasing his interest in emerging crypto technologies.
In June 2021, Kim Kardashian, known for her roles as an American media personality, socialite, model, and actress, utilized her Instagram platform to invite her 328 million followers to consider investing in EthereumMax.
In her Instagram story, she explicitly stated, “This is not financial advice,” while sharing insights from her friends regarding the Ethereum Max token. Additionally, she included the hashtag “ad” among others to ensure transparency regarding the nature of her endorsement.
However, Kim Kardashian faced penalties from the SEC for promoting EthereumMax without proper disclosure, leading to a settlement where she agreed to pay $1.26 million.
The SEC charged Kardashian with unlawfully touting the crypto asset security offered by EthereumMax on her Instagram stories without revealing that she was paid $250,000 for the promotion. This lack of disclosure violated federal securities laws, prompting the SEC to take action against her.
The settlement required Kardashian to pay $260,000 in disgorgement, reflecting the amount she received for promoting the token, along with a $1 million penalty. Additionally, Kardashian agreed not to promote any crypto asset securities for three years and to cooperate with the ongoing investigation.
The case highlighted the importance of transparency in influencer marketing, emphasizing that investors have the right to know if endorsements are unbiased. Kardashian’s settlement with the SEC allowed her to resolve the matter and move forward while avoiding a more extensive legal process.
Elon Musk and Dogecoin lead the pack
A recent statement by Tesla CEO Elon Musk hinted at the possibility of using Dogecoin (DOGE) for Tesla payments in the future. Notably, iconic rapper Snoop Dogg has also voiced his support for Dogecoin, leveraging his influence in music and pop culture to further promote the digital currency.
The recent surge in Dogecoin was ignited by remarks made by Elon Musk on March 15. The Tesla CEO was touring the Berlin gigafactory, which had recently reopened following an arson attack. During a Q&A session, an audience member inquired about the possibility of purchasing a Tesla with Dogecoin.
Musk responded, “At some point I think we should enable that,” eliciting cheers from the crowd. He further reiterated the catchphrase “Dogecoin to the moon,” further fueling enthusiasm among attendees.
Elon Musk’s impact on Dogecoin has been a turbulent journey, characterized by his remarks and actions that have profoundly affected the cryptocurrency’s value and popularity. Musk’s association with Dogecoin, ranging from dubbing himself the “Dogefather” to proposing its potential use for Tesla payments, has ignited both enthusiasm and controversy within the crypto community.
Musk’s tweets and comments have served as significant drivers behind the fluctuations in Dogecoin’s price.
On Jan. 14, 2022, Tesla commenced accepting Dogecoin exclusively for its merchandise, specifying that transactions made with other digital assets would not be eligible for returns.
His endorsement of Dogecoin as his preferred cryptocurrency and his playful interactions with the coin have generated widespread attention. However, Musk’s influence has also faced scrutiny, with allegations of market manipulation and insider trading emerging in response to some of his social media posts.
The market’s responsiveness to Musk’s actions was evident when Dogecoin’s price surged by 30% following his change of Twitter profile picture to the Shiba Inu dog emblem of Dogecoin. This immediate reaction highlights the profound impact of Musk’s engagement with the cryptocurrency market.
Another notable individual, who has piqued interest in the memecoin, is Snoop Dogg.
His interest in crypto assets was evident when he shared a meme featuring a Shiba Inu, the iconic dog breed linked with Dogecoin. His remarks, coupled with similar posts from Elon Musk and Gene Simmons, contributed to the increasing buzz surrounding Dogecoin.
Snoop Dogg has also demonstrated his support for Dogecoin in a music video where references to Dogecoin and the Shiba Inu were prominently featured. This strengthened Snoop Dogg’s association with the cryptocurrency and increased its cultural significance.
Snoop Dogg’s endorsement of Dogecoin not only brought visibility to the digital asset but also highlighted the intersection of celebrity influence and cryptocurrency. By using his platform and wide audience reach, Snoop Dogg helped shape the narrative around Dogecoin, making it more accessible and appealing to a broader audience.
