Justin Bieber, Eminem, Snoop Dogg and Paris Hilton have been named among 19 celebrities who have allegedly promoted NFT projects without disclosing their ties to the projects, according to an independent, non-profit, advertising watchdog. Reese Witherspoon, DJ Khaled, Floyd Mayweather, Madonna and Logan Paul have also been named by consumer watchdog group Truth in Advertising (TINA), which promotes safer advertising in all sectors. NFTs, or non-fungible tokens, are blockchain-based digital collectibles, inspired by real-life or virtual objects, and the US regulator has previously warned about the risks of celebrity-endorsed NFTs.
The TINA organization has written letters to these celebrities, highlighting their grievances regarding the financial risks their followers are facing by promoting risky NFTs.
“This means that consumers may not be aware that advertisements are not only biased, but also inflate the value of celebrity-owned companies and NFTs (known as ‘artificial price effects’),” TINA said. said In a statement.
Sales of NFTs to reach $25 billion (roughly Rs. 1,84,700 crore) in 2021 as speculative crypto assets grow in popularity, data from market tracker DappRadar shows.
Amidst the trend of NFTs catching on among celebs and other members of the crypto community, the sector has attracted the attention of scammers.
Many NFT projects made the rounds on social media, luring investors to pour in money and then abandoning these investors.
In fact, even the US Securities and Exchange Commission has warned investors to be wary of celebrity-endorsed NFTs.
