Celebrity endorsements for crypto carry a lot of weight for U.S. investors

(Celebrity) According to a survey by business intelligence firm Morning Consult, cryptocurrency owners differ from other investors in how they gather information about potential investments. In particular, celebrity recommendations for cryptocurrencies seem to carry weight when making investment decisions.

Celebrity endorsements for crypto carry a lot of weight to US investors

45% of crypto owners surveyed said they would buy a particular cryptocurrency if a celebrity endorsed it. This is higher than for investors in general (including crypto holders), with only 20% of respondents saying the same thing.

The high number of crypto owners who said they would heed advice from celebrities was highlighted in a Morning Consult report linked to a now popular Instagram post by celebrity influencer, voice and reality TV star Kim Kardashian, released.

In the post, Kardashian promoted the rather strange and almost worthless altcoin EthereumMax (EMAX) to its 255 million followers, mainly by suggesting a link to a boxing match between Floyd Mayweather and YouTuber Logan Paul on June 6th.

Following a post by Kardashian urging her followers to “join the Ethereum Max community,” the head of the UK’s Financial Conduct Authority (FCA) announced that the public would not invest in tokens advertised by influencers and warned:

“I can’t tell if that particular token is a scam, but social media influencers are often paid by scammers to help them pump and sell new tokens based on pure speculation. Some influencers advertise coins that simply don’t exist. “said FCA President Charles Randell in a statement at the time.

Despite the clear warning from regulators, nearly a fifth of those who said they saw the post also said they invested in EthereumMax after seeing it, the survey found.

Perhaps equally surprising is the finding that shortly after the Instagram post was published, around 20% of the total US adult population said they heard of the post. For current crypto holders, the percentage is even higher, with 31% saying they know about the post.

The results of the survey show the incredible accessibility that some online celebrities have, including access to the cryptocurrency market and especially cryptocurrencies.

Differences between cryptocurrency owners and investors in general

Cryptocurrency owners are more likely to look for more sources of investment information than ordinary investors, such as social media and investment apps like Robinhood or Betterment.

Cryptocurrency owners tend to be younger, and younger investors are also more likely to say that social media influenced their financial decisions, noted Morning Consult, summarizing their findings.

“Investment leaders need to remember that while financial advisers remain a trusted source of advice, they compete with more sources of information to share the mindset of crypto investors,” they concluded.

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