Why Kim Kardashian was fined, Matt Damon, Larry wasn’t ?
Kim Kardashian was punished Monday with a $1.26 Million fine for promoting crypto schemes. This is despite other high-profile pitches by Matt Damon, Larry David, and Larry David not being punished. This apparent double standard is due to a subtle but crucial distinction in securities law.
Why it Matters: Celebrity crypto endorsements attracted millions of Americans to the crypto market in the first quarter of 2018, just before the price collapsed.
- These TV ads cost as much as $6 million and were viewed millions of times. Nearly everyone who purchased crypto at these levels lost money.
- However, one post on Kardashian’s Instagram account about a coin that almost nobody had heard of might has resulted in losses for anyone who purchased the coin after seeing the advertisement. However, the losses for the entire group were small compared to the large-scale campaigns by the powerful crypto platforms.
What they are saying: Announcement The Kardashian Settlement: Gary Gensler, SEC chair, attacked celebrity endorsements more generally.
“This case serves as a reminder that just because celebrities endorse investment opportunities (including crypto asset securities), it does not mean they are suitable for all investors.
Between The Lines: Gensler’s bravado notwithstanding, legally speaking, it’s fine<span data-preserver-spaces=”true”> to endorse investment opportunities, including crypto investments by celebrities and influencers. Kardashian endorsed a crypto asset security. This was where she crossed the line.
- The 2022 Super Bowl was the height of the crypto advertising boom. Companies like FTX, Crypto.com, and others spent untold million promoting their websites as a place where you can buy crypto and implicitly get rich from doing so.
- Kardashian’s 2021 Instagram post was comparatively low-budget — she was paid $250,000 for it — and promoted an actual coin, EthereumMax, that the SEC determined is security. This puts it under the SEC’s jurisdiction. This is stricter than most advertising regulations.
What it means: If you endorse a company, only the somewhat lax rules of the FTC apply. You must disclose the amount you received if you sell security products. Kardashian did this with an #AD hashtag.
The bottom line is to Promote crypto companies and not a coin.
Matt Damon Mocked Again for “Fortune Favors the Brave” Crypto Ad as Virtual Currency Vals Crash
A few months ago, Matt Damon encouraged people to buy cryptocurrencies fearlessly. A CGI advertisement for Crypto.com hyped the tagline “Fortune Favors the Brave.”
With cryptocurrencies in freefall and cratering at new lows, the Oscar-winning star from “Good Will Hunting” and “The Martian” is being mercilessly dragged for his gig as Crypto.com’s face in a new round of online jeering.
Social media users note that Damon’sDamon’s recommendation to invest in cryptocurrencies last fall would have caused your holdings to drop by roughly two-thirds.
Among many celebs, Damon endorsed cryptocurrencies alongside big-face names such as Kim Kardashian, Steph Curry, and Floyd Mayweather.
Damon takes viewers on a historical journey with brave men and women and inspires them to be their best selves. The Crypto.com ad was directed by Wally Pfister and aired during NBC’s Super Bowl LVI telecast.
Damon’s spot features Damon looking out from a spacecraft onto Mars.
Few months back how matt promoted crypto
Crypto.com was founded in 2016 and caught naming right to L.A. Staples Center — now known as Crypto.com Arena — under a 20-year agreement.
If you bought $1,000 of bitcoin the day Matt Damon’s “Fortune favors the brave!” commercial came out, it would now be worth $375 pic.twitter.com/rp5IdjBD3m
— 🦀 Jon 🦀 Schwarz 🦀 (@schwarz) June 13, 2022
Cryptocurrencies have experienced a dramatic decline over the past seven months. This has been accompanied by fears of economic recession and a broader drop in their value. Bitcoin was trading at $21,000 on Wednesday after hitting a peak of $68,990.90 in November 2021.
Crypto.com, a virtual currency company, is making layoffs due to the continuing sell-off of crypto values. The wags cannot help but indulge in a new round of schadenfreude at Damon.
Matt Damon calculating how much he lost investors since shilling crypto at the top pic.twitter.com/5ri4tGJNi1
— Alex Cohen (@anothercohen) June 14, 2022
Listen, I know he doesn’t have the best record with financial advice, but I feel pretty good about Matt Damon’s new commercial. pic.twitter.com/xQyJvEmJCF
— Mike Beauvais (@MikeBeauvais) June 14, 2022
hi matt damon here. i want to apologize for not making it clear when i did that primetime crypto commercial that i was only speaking to multi millionaires and not to losers like you who can’t afford to lose a few thousand dollars
— eve6 (@Eve6) June 13, 2022
We should never forget that Matt Damon, Lebron James, and Larry David all have a tonnnnn of money and plenty of advertising options, but still elected to sell out for Crypto near the top and shill it to the common man.
— High Yield Harry (@HighyieldHarry) June 13, 2022