What do Addison Rae, Snoop Dog and Elon Musk have in common? They all invest in crypto.
The US Securities and Exchange Commission has warned against the danger of investing in a cryptocurrency because a celebrity says to.
“Celebrities, like anyone else, can be lured into participating in a risky investment,” said the SEC.
“It’s never a good idea to invest in something just because someone famous says it’s a good investment.”
The City Watchdog also has warned that many of the cryptocurrency trading schemes promoted by celebrities turn out to be scams.
Because celebrities make money through attention, they generally are free to make more risky investments than your average Joe.
The larger their following, the more the celebrity is able to artificially pump a particular coin or crypto on their platform.
Elon Musk, Snoop Dog and Addison Rae
We’ve already seen how celebrities can leverage their influence to affect crypto markets. It seems as though all Elon Musk needs to do is send out a Tweet, and the whole market goes to chaos.
Earlier this year, Dogecoin soared by $10 billion after Musk tweeted the memecoin looked “promising”.
Converselly, the coin plummeted after Musk called himself ‘The Dogefather’ during his SNL cameo.
But Elon Musk isn’t the only celebrity dipping his toes into crypto investments. Tik Tok star Addison Rae’s family recently got involved in crypto through their investment in Gryphon Digital Mining.
“Sustainability is so important to me and my family,” the actress said in a statement. “We are excited to be part of Gryphon, a company that uses 100 percent renewable energy to drive innovation in blockchain technology.”
Fellow TikTok star Johnson has more than 10 million followers on the platform and sees the move as intuitive. “Crypto is shaping the future of currency, and as a young entrepreneur, I want to make sure I am a part of that shift with the best in the business,” the influencer, 22, said.
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