Even if the non-fungible token (NFT) market’s initial mainstream enthusiasm significantly dropped in 2022, a few famous and wealthy people destroyed the sector in 2017 with bad collections.
The worst influencer and celebrity NFT cash grabs. Cointelegraph looks at four initiatives that seem to be created to steal money out of the pockets of their supporters while providing very little in return.
NFT: What is it?
NFT (Non- Fungible Tokens) are digital assets built on the blockchain. NFTs are made using the same blockchain technology as cryptocurrencies. They cannot, however, be exchanged on an equal basis as other cryptocurrencies.
- Uniqueness – NFTs cannot be forged.
- Representative – NFTs typically represent online collectibles such as music, artwork, games, cartoons, and other media and have valid certifications backed by blockchain technology.
- Exchange – NFTs trades take place on a specific website, just like other cryptocurrencies like Bitcoin.
Cryptopunks are the most well-known instance of NFT. Up to 10,000 collectibles can be purchased, stored, and sold using this tool.
“NFTs are birth certificates for the offspring of creators.”
- Dane Scarborough, a full-time inventor/product developer
Traditional marketing vs. NFT influencer marketing
Web3 increases the possibilities for NFT influencer marketing. First, businesses and content creators can expand their markets and attract new audiences interested in blockchain technology by collaborating to create innovative NFT experiences.
Another standout aspect of NFT influencer marketing is the role of content providers. By influencing a cryptocurrency’s value with their ideas and opinions, NFT influencers can have a tangible impact.
This does not imply that NFT influencers are the only persons who can participate in NFT influencer marketing. Anyone can participate in this type of marketing; NFT brands, projects, or content creators are not the only ones who can.
Some are professionals in cryptocurrencies and NFTs, while others are influencers or brands from various industries that can look for an NFT partner or specialized agency.
As marketing trends have changed over time, NFT influencer marketing and influencer marketing complement rather than substitute one another because they are closely related.
Why do brands and content producers gain from NFT influencer marketing?
NFTs do not threaten the relationships between brands and creators; they deepen them and create new opportunities for creative expression.
Putting NFTs concepts into practice allows brands to reduce their initial costs and generate revenue from NFT sales. We’ve learned from the situation that people are willing to pay a significant amount for an NFT.
Traceability is another factor that benefits brands when they use NFT influencer marketing. Brands will be able to monitor the effects of NFTs in their marketing plan thanks to blockchain technology.
Additionally, content producers discover intriguing new options. Thanks to the distinctive value of these tokens and the ability to track them, influencers can get copyright royalties whenever their NFT generates revenue, not just at the beginning of the campaign.
Although creators are frequently paid for the use of their photographs in both traditional marketing campaigns and influencer marketing, it can be challenging for them to measure the amount of money companies are spending to advertise their collaboration with them. NFTs might be used to keep track of all of these, and influencers may be compensated with copyright royalties.
Brands and content creators may undoubtedly benefit from NFT influencer marketing.
Audiences will also profit from this since they will discover interesting, distinctive experiences.
Worst influencer and celebrity NFT cash grabs of 2022
OG (Original Garage) — Social ClubTai Lopez
The quirky businessman Tai Lopez, best known for his cheesy advertising campaigns that used to inundate YouTube in the past, comes in first.
Lopez’s most well-known videos are his 2015 “here in my garage” business course advertisement. He first brags about his Lamborghini before saying that he is more proud of the countless books he possesses because of the “knowledge” they provide him with.
Lopez released a line called “OG (Original Garage) Social Club” in March as a tribute to the music video.
The three NFT rarity levels ranged from $150 at the lower end to $50,000 for the premium tokens, which offered exclusive benefits, including a one-on-one basketball contest with Lopez, a date to a movie or dinner, and special mentoring sessions.
Regardless of rarity, the floor price for all NFTs is 0.08 ETH, or $97. Right now, the data on OpenSea paints a gloomy picture.
The high-end NFTs include a basketball-related token that costs as little as 0.880 ETH ($1069) and an NFT that gives access to a private supper with Jennifer Lopez that originally cost over $30,000 but is now available for 1 ETH ($1214).
Donald Trump — Trump Digital Trading Cards
Donald Trump, the former President, revealed a weird licensed NFT project in December that included 45,000 trading cards using his likeness despite previously being a loud opponent of cryptocurrencies.
Trump was portrayed in various ways in the poor and maybe plagiarised artwork of the NFTs, including as a superhero, hunter, cowboy, and golfer. The 45th President was available for various one-on-one interactions through contests offered by the NFTs.
The NFTs were offered for $99 each, but they immediately sold out on December 16; two days later, the floor price on OpenSea had risen sharply to 0.83 ETH ($1,008). But since then, the price has significantly decreased, falling to 0.164 ETH ($199).
The Trump NFT effort produced approximately $4.5 million from the initial sales and continues to collect a 10% creator fee on sales on secondary markets. Thus it is successful regardless of whether investors who first acquired it are still in the black.
Floyd Mayweather Jr. – Mayweverse
Legendary boxer Floyd Mayweather Jr. is also on the 2022 list. For an NFT project that looks to have been completely abandoned as of this writing.
On March 22, Mayweather claimed via Twitter that the “Mayweverse” contains 5,000 NFT goods.
The NFTs first became available to holders on April 13 for a mint price of about $900, providing them the possibility to win cash prizes ranging from $5,000 to $30,000 as well as unique experiences like joining Mayweather in a new Metaverse named “Floyd’s Gym.”
Since the mint, the Mayweverse Twitter account hasn’t tweeted anything, and in 2022 as a whole, there have been no follow-up tweets. Who won any awards and when the Metaverse will begin are both unknown.
Although the website’s roadmap initially said that additional “future benefits” would be made available soon, it is now outdated.
Lana Rhoades — CryptoSis
The last initiative on the list was launched in February 2022 by prominent influencer and former adult film star Lana Rhoades.
Originally intended to have 6,969 cartoon avatar NFTs with a Rhoades theme, Crypto Sis only has 6,069 owing to a lack of interest.
Since the platform’s launch in February 2022, there has been a total trading volume of less than 1 ETH, and the Nand FTs’ value on OpenSea has essentially remained at zero dollars. The NFTs first sold for about $261. The project’s Twitter account is also not operational right now.
Rhoades allegedly received $1.5 million from the sales, instantly withdrew the money from her Ethereum wallet, and then completely stopped operating the company because her community was “too hostile.”
In now-deleted social media posts, Rhoades initially advertised the compatibility of the avatars with the Metaverse in addition to several services, like whitelist access to upcoming drops, membership in a Metaverse group, autographed items, and virtual meet & greets.
Making the initiative a “profitable investment for holders that they can sell for more than they paid to mint,” according to Rhoades, is her top priority.
In now-deleted social media posts, Rhoades initially advertised the compatibility of the avatars with the Metaverse in addition to summary services, like whitelist access to upcoming drops, membership in a Metaverse group, autographed items, and virtual meet & greets.
The neighborhood accused her of running a rug pull. But Rhoades disagreed, asserting she could not prevent the project’s failure.
Celebrities and influencers supported the crash in the latest valuations of these NFTs. The pricing decreased because of the operation of market forces. The tokens have lost their glow, and it is important to know how these future investments will function.
While most celebrities claim to be involved in NFT markets for good causes, traders and investors should remember that actors and singers are neither perfect nor morally good. Celebrities have occasionally supported collections that turned out to be frauds. As a trader, you must approach any potential investment with a fair degree of scepticism, even if it has been endorsed by one of your idols.
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Frequently Asked Questions(FAQs)
- Do NFTs make a wise investment? What are NFTs’ potential risks?
Ans: NFTs fall under the category of high-risk, high-reward investments. The NFT market is driven by rarity and demand because people are so obsessed with them.
However, experts caution prospective investors against placing all of their financial security in NFTs because they are overexcited by the unimaginable prices at which they are sold. Similar to initial coin offerings, there is a considerable likelihood that NFTs will defraud you. When investing, you must also consider that you do not control the content of the NFTs.
Know what you’re getting into before attempting to invest in NFTs. To have even a remote chance of success in the bitcoin market, you must possess extraordinary expertise.
The theory of time and chance applies to NFTs. They only have value about what buyers are ready to pay.
- What Exactly Are Celebrity NFTs?
Ans: Celebrity NFTs are non-fungible tokens that celebrities have developed, marketed, or acquired. Actors, athletes, and musicians greatly boost the awareness of these digital assets by endorsing NFT collections with their star power.
- Why Do Celebs Promote NFTs?
Ans: Most celebrities with NFTs see the tokens as a way to deepen their connection with fans. Snoop Dogg, for example, created digital art that pays respect to the ideas and images that characterised the earlier stages of his career. He maintains his position at the top of culture by applying his particular style to the digital sphere.
Celebrity NFTs can raise huge sums of money for worthy charitable organisations. For example, Ellen Degeneres raised more than $33,000 for a hunger assistance organisation by selling NFTs of her scribbly cat drawing.
These illustrations demonstrate how well-intentioned people might utilise celebrity NFTs to finance significant social endeavours.
The tokens are used as a weapon in the struggle for social and cultural transformation. The belief that models should have the right to earn from their photographs was reinforced when model Emily Ratajkowski released an NFT of herself in front of a once-appropriated image. This crucial message is intended to inspire creators from all across the world.
Some celebrities might be investing in NFTs with the hope that by fostering a collection, the cost and value of the tokens they already own would increase. It’s critical to consider this potential motivation when considering celebrity NFTs.