by Brandon Reiter
Earlier this month I wrote an article about the global scandal concerning the Crypto exchange, FTX. In the latest news surrounding the Ponzi-like Scheme, various celebrities who were hired to endorse the company are being sued for endorsing the fraudulent company.
This raises and interesting debate among the growing industry of influencer marketing. Obviously, no reasonable person would expect Larry David, of all people, to know a single thing about Crypto, even the commercial itself leans into that notion. However, if celebrities are going to make livings off “endorsing” products, and “influencing” their followers in regard to what they should consume, it would make sense that they should understand what it is they are endorsing.
Especially with hindsight, it is hard not to laugh at the overwhelming irony that this commercial graced us with. While I do feel bad for the unsophisticated investors who were victimized, Larry David getting sued for endorsing a company in an ad where he only said negative things about sounds like it was written by Larry David.
While it may seem unfair and erroneous I do think that David and the other celebrities who endorse this: Tom Brady, Stephen Curry, and more, should be held accountable and made an example of for other celebrity and influencer endorsers in the future. If you are going to endorse something you should at least have to perform some level of due diligence to try and verify if it is a legitimate company and something you would want to recommend to your followers. On the flip side, you shouldn’t blindly buy or invest in something just because Larry David told you not to.
Let us know your thoughts on the FTX scandal!