F i nanc i a l Innov a t i on & F i nTech 34 Finance Monthly. the rise of crypto influencers – individuals who use their social media platforms to promote cryptocurrencies, initial coin offerings (ICOs), and blockchainbased projects. Crypto influencers come in all shapes and sizes. Some, like Kim Kardashian, have millions of followers and can command a handsome fee for a single post. Others, like aspiring YouTubers and Twitter personalities, are just starting to build their followings but are no less enthusiastic about the industry. According to Influencer Marketing Hub, crypto influencers make around $500 to $1500 per thousand views. If you look at an influencer’s average views for a video for a month, and the video views are around 10,000 views, you will make approximately $5,000 to $15,000. The Benefits of Crypto Influencers There’s no doubt that crypto influencers have the potential to reach a large audience and bring much-needed attention to the industry. After all, the more people are aware of cryptocurrencies and blockchain technology, the more likely they will invest in them. In addition, some crypto influencers are true believers in the technology and can help to promote its use cases andpotential benefits to the mainstream world. Pump and Dump Schemes However, not all crypto influencers are created equal. Unfortunately, many promote dubious ICOs and pump-and-dump schemes. A pump-and-dump involves artificially inflating the price of an asset through false and misleading positive statements to sell the asset at a higher price. Once the price has been pumped up, the perpetrators will then dump their shares. This results in the price crashing, and investors left with worthless assets. SEC Response to Kim Kardashian As mentioned earlier, Kim Kardashian has recently been involved in what the class action case deemed a pump-and-dump scheme. In response to the case, SEC Chairman Gary Gensler said it was a “reminder” that celebrity endorsement did not necessarily make a product worth investing in. Later, in a Youtube video about crypto investment, he added: “Celebrity endorsements don’t mean that an investment product is right for you or even, frankly, that it’s legitimate. Even if a celebrity endorsement is genuine, each investment has its risks.” FaZe Clan and Save the Kids Another famous example of a Kim Kardashian was charged $1.26 million by the Securities and Exchange Commission (SEC) for failing to disclose that she was paid £250,0000 to promote Ethereum Max on her Instagram page.
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