Endorsements from famous personalities pivot strongly on the integrity and reputation of the thing being endorsed. This rings true for Australian F1 celebrity, Daniel Ricciardo, and his Olympic snowboarder buddy, Scotty James. Both stars grappled with doubts when roped in as ambassadors for OKX, a crypto exchange. Their endorsements hung heavy, especially after the FTX debacle led to adverse publicity and legal consequences for comedian Larry David and NFL star Tom Brady.
Admittedly, Ricciardo, who had signed on with OKX in May 2022, took some time to warm up to the concept of cryptocurrency. “I’ve been in the sport a long time where for sure, a lot of things get put in front of me, which is exciting. But you kind of also learn when to say ‘no, that’s not right for me,’” he said. A critical factor in increasing confidence was the monthly proof of reserves reports of the crypto exchange.
Despite these precautions, a crypto market crash painted Matt Damon in a bad light due to his association with Crypto.com. It’s evident that even due diligence and precautionary measures may not safeguard the image of a celebrity endorsing crypto platforms in the face of market volatility.
The collapse of FTX must have sent shockwaves through Ricciardo and James who had recently associated themselves with another crypto platform. However, they found solace in the active steps undertaken by OKX to educate and inform them about crypto. “I built trust over time with doing that, and we feel pretty good about it,” James said.
On a positive note, the endorsement deal appears to swing toward the brighter side with coins such as BTC and ETH showing positive market trends. However, clearly, the ambassadors must tread cautiously given the tumultuous nature of the crypto landscape. A merchandise agreement is not happening anytime soon, at least not until the markets stabilize, according to Haider Rafique, Chief Marketing Officer of OKX.
In conclusion, amidst the uncertainty revolving around the crypto market, the involvement of celebrities brings both, a massive opportunity for crypto platforms to ride on celebrity influence and an immense risk of negative blowbacks in case of market crashes and scandals. Only time will reveal how successful this shift toward the mainstream of celebrity endorsements will be for the crypto world.
Source: Cointelegraph
