Crypto-Influencer Liability

Abstract

The growth of celebrities endorsing crypto-currencies the past few years has resulted in many lawsuits and regulatory actions against them. This article examines some of these recent actions using Google Trends as well as insights from the Marketing literature. We suggest that while celebrities can have an influence on the public in terms of searches and interest in crypto-currencies, such influence is more nuances. The impact of celebrity endorsements depends on how the public perceives the celebrity in terms of their fame but also in terms of their expertise. As such, any legal or regulatory actions will have to account for these nuances when seeking legal redress against celebrities whose endorsements may have been placed on products that ultimately failed or causes losses for those who invested in them.

Keywords: Crypto, Influencers, Marketing, Signalling

JEL Classification: D82, M30, G14