Celebrities are simultaneously considered the best and worst of humanity – and the more vocal and visible of them can attract a fanbase of millions. Whether it’s sportspeople, singers, business folk, or politicians, famous people exert a huge amount of influence over the rest of us, meaning that they’re in a perfect position to lead consumers to new products and technologies.
A Mood Ring
To put that latter point into numbers, according to the Digital Marketing Institute, 49% of consumers rely on recommendations from a beloved influencer. This is a growth industry. For instance, the social media platform TikTok created a $1bn fund in 2020 to create more robust influencer voices, with the goal of fostering new sponsorship agreements between creators and brands.
The worry is that celebrity influence works both ways. In crypto, Elon Musk’s relationship with Dogecoin is a case study of how influencers can destroy or elevate a brand. The billionaire Twitter owner has flirted with the idea of incorporating the token into the social media platform in the past – yet nothing has happened to date and Musk’s interest in Dogecoin seems to be waning.
Increasingly, Dogecoin has become something of a mood ring for Musk, which places the asset in jeopardy.
“Fastest Growing”
All this comes at a time when crypto is making headway in more mainstream businesses. The Dallas Mavericks NBA team, electronics store Newegg, and Tesla all accepted Dogecoin last year. In 2023, the digital.com website expects 27% of companies to start taking crypto payments including Dogecoin and Bitcoin. Of course, Bitcoin already has something of a presence online courtesy of the gaming industry.
Streaming site Twitch accepts Bitcoin, Dogecoin, and Ethereum, while a host of online casinos also use crypto as an alternative to credit cards. The planet7casino operator lets visitors play real slots online with Litecoin and Bitcoin, as well as Visa, Mastercard, Amex, and Discover cards. The site, which provides games like video poker and blackjack, describes Bitcoin as the “fastest growing cryptocurrency” out there.
Price Shifts
Of course, Bitcoin isn’t without its own celebrity problems. The value of the coin sank by 3.6% in June 2021 after Elon Musk posted a meme suggesting that he’d fallen out of love with the cryptocurrency. This was despite the fact that Twitter founder and current Square CEO Jack Dorsey revealed his interest in creating a digital wallet for Bitcoin at around the same time.
Previously, in May, Musk caused a 15% landslide in Dogecoin’s value by questioning Bitcoin’s use of fossil fuels on the climate. This was just a few days after the businessman single-handedly cut a third from Dogecoin’s price by referring to it as a “hustle”. Unfortunately, Dogecoin has a loose connection to Twitter, and that particular social network is rapidly losing its footing (overall reach is down 9%).
In essence, Musk and other influencers are able to hold crypto to ransom. Following several high-profile problems at Twitter (the billionaire now wants to leave by the end of the year), his word is increasingly poisonous for cryptocurrencies. Of course, it can also provide a bit of a savior for tokens, depending on what kind of mood Musk happens to be in.
Sadly, there may be no way to untether tokens from their celebrity crushes, meaning that Dogecoin in particular may be doomed to more violent price shifts in the future.
