Are celebrity endorsements good or bad for Web3? Execs weigh in.
As the cryptocurrency market seeks a new narrative to drive growth, celebrity-backed token projects have emerged, a trend that has generated mixed opinions from seasoned crypto enthusiasts regarding this new wave of memecoins.
While some argue that celebrity tokens can attract new users to crypto, others believe that the speculative nature can mislead consumers about the true value of blockchain.
Celebrity memecoins can be rolled out to new users.
Those who argue for popular tokens see it as effective in cryptocurrency. Solo Sesei, co-founder and CEO of the social wallet Kalaxi, believes that these tokens can make crypto accessible to more people. Sissy said:
“I think celebrity tokens, like memecoins in general, can be very useful for the space because they serve as the easiest way into crypto for most consumers.”
Ceesay argues that using the similarity of known figures makes attracting new users easier than the complex proposition of Web3 capabilities.
Cesey is optimistic about the future of celebrity tokens, suggesting they could turn into a valuable asset class. “Over time, I expect popular coins to assert themselves as a meaningful asset class with real strategies and issues to engage with them,” he said.
Meanwhile, KuCoin representatives told Cointelegraph that while celebrity tokens may play a role in user onboarding, investors should still be cautious. He explained.
“Celebrity tokens can be a great gateway to crypto communication for new users, mainly because of their low entry points. But their scale of thought and utility can lead to potential risks.
Representatives emphasized that like any other form of investment, KuCoin encourages investors to “DYOR” or “do your own research,” a common phrase in the crypto community. .
Related: Celebrity memecoins highlight crypto influencer problem
Risks and doubts surrounding celebrity-driven crypto
On the contrary, Matt Wright, CEO of decentralized artificial intelligence (AI) company Gainet, criticized the trend as damaging the crypto space. Wright explained.
People are bad for the space because people think it's crypto, but it's just influencer marketing related to economics.
He argued that the hype around celebrity tokens overshadows the true potential of blockchain technology. Wright warns that these tokens are unsustainable unless they provide valuable utility and innovation. He also compared the trend to the NFT craze, where many projects lack content.
The speculative nature of celebrity tokens has also raised concerns about their long-term viability. Andreas Bracken, CEO and founder of the trading platform SideShift.ai was particularly vocal in his criticism. He argued.
“Washed-up celebrities are being recruited in droves to create pump-and-dump schemes to squeeze every last penny out of their worthless reputation.”
“They will all go to zero in days, maybe months,” he predicts a dire future for most celebrities.
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