Wednesday, July 6, 2022

Matt Damon’s Crypto Ads Accused of Making People Lose Money

While the collapse of Bitcoin and other cryptocurrencies was dire news for investors, it was also a worrying development for Matt Damon and his reputation as a movie star for the good guys.

The “The Martian” actor came under fire on Twitter for his infamous 60-second TV ad that appeared during the NFL playoffs and Super Bowl earlier this year, encouraging people to invest in cryptocurrencies. Damon praised people’s investment in cryptocurrencies as the next great human endeavor, like the Wright brothers who invented human flight or astronauts landing on the moon, changing the game of history.

“Fate favors the brave,” Damon says proudly in the ad, as he wanders the minimalist corridors of sci-fi movies while showing images of some of the world’s greatest explorers.

As when the ad first ran, Damon came under fire on Twitter on Thursday for a multi-millionaire trying to sell ordinary people the idea of ​​risking their savings to invest in “completely man-made assets.”

Then and now, Intercept investigative reporter Ken Klippenstein slammed Damon for possibly making millions to create ads. Crippenstein tweeted in January:

Crippenstein followed up Wednesday:

Jon Schwarz, another Intercept writer, pointed out how much money people could lose if they were moved by Damon’s TV ad, which premiered in late October.

Bloomberg reporter Jason Schreier said Damon used his reputation as a smart, decent, relatable star to basically promise that investing in cryptocurrencies would bring wealth. Instead, “billions of dollars” have been “disappearing” in recent weeks.

Bitcoin and other cryptocurrencies tumbled overnight Thursday, hitting their highest levels since the crypto markets began to surge in late 2020, according to Forbes, CNBC and other outlets. The crash wiped out $200 billion in one day and nearly $1 trillion in value in a month.

Investors have been fleeing cryptocurrencies in recent months, CNBC said, at a time when stocks have also fallen on fears of inflation and a worsening outlook for the U.S. economy.

With such turbulent circumstances, the company Crypto.com clearly thinks people will get their financial advice from a likable star like Damon. Crypto.com makes an app that facilitates the purchase and sale of Bitcoin and other cryptocurrencies.

The “Bourne Identity” star isn’t the only celebrity touting digital currencies. The same goes for Kim Kardashian, Stephen Curry, Tom Brady, Spike Lee, Alec Baldwin, Neil Patrick Harris, and others.

But Damon’s widely publicized and derided “Fortune favors the brave” ad has sparked discussions among business journalists and other experts about the deepening connection between celebrities and cryptocurrencies. In an episode of Slate’s “What’s Next: TBD” podcast, authors Jacob Silverman and Ben McKenzie talk about how they see the growing practice of hiring celebrities to promote cryptocurrencies for their upcoming books.

They said they found that some stars may not fully understand what they are promoting. Still, celebrities took the money, which was both “disappointing” and surprising to Silverman and McKenzie, given how protective of their brand and image celebrities are when attaching their names to products.

Celebrities peddling cryptocurrency should have an obligation to reflect on what they’re doing, McKenzie said. “Would you feel bad if your fans lost money because you gave them bad financial advice?” McKenzie said.

People on social media on Thursday must have wondered if Damon was feeling bad about pushing cryptocurrencies. One person tweeted that the collapse of the cryptocurrency is not funny because following Damon’s lead could seriously hurt some people.

But some speculate that maybe Damon wasn’t that bad.

Others are still joking.

Still others believe the situation offers some important lessons about the risks of certain markets and why people shouldn’t take financial advice from celebrities:

US News .

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