DAZED asks OK, are celebrities getting paid to shill NFTs?

Using the well-circulated clip of Jimmy Fallon and Paris Hilton, awkwardly, discussing their NFTs on his show, the article asks why did these two mega-rich celebrities cough up hundreds of thousands for these cartoon ape drawings, and – more importantly – why are they showing them off on national TV?

The short and obvious answer is money. But the more interesting issue is how celebrities that are buying into the NFT craze are getting paid, writes DAZED, who suggest there could be more nefarious deals going on behind-the-scenes.

For many NFT holders, hyping up their assets is part of the process; it helps when they decide to “dump their cartoon apes” for a tidy profit. But when famous people get involved, the practice takes place on a different scale and with that raises legal and ethical issues. 

Much like buying merchandise, celebrities are encouraging fans to buy into the collections – and some celebrities are bringing out their own original NFTs, somehow creating a vague feeling of community. 

The article says the problem is, celebs bill these NFTs as a “great investment thanks to the staggering returns seen by early adopters.” Ironically, these returns are based on the asset’s inflated value, creating a vicious cycle where those with the right knowledge or connections sell at the right time and leave their disciples in the dust – AKA a “pump and dump.” 

The article claims there’s more to it than “mere market manipulation” and there is the theory that influencers and mainstream celebrities have been accepting discreet payments in return for the promotion of NFTs – with underhand negotiations being carried out in the DMs. If true, it could violate legal guidelines about declaring ads on social media. 

The article concludes that when famous people get involved, even if they’re enlisting outside companies to snap up the cartoon pictures on their behalf, it still raises the visibility and leads to more people buying in and floor prices going up – great news for anyone already invested in.  

The way celebrities are marketing NFTs to their audience is murky at best. Even if payments aren’t being made out in their open, the name-dropping interviews, product placements in video amongst other tactics raises questions about the stars’ power to pump up the value of assets they already own.