Crypto enthusiasts are far more likely to be swayed by A-listers than everyday investors.
New research suggests 45% of crypto owners would invest in a coin if it was endorsed by a celebrity or influencer, compared with 20% of normal investors.
Morning Consult’s poll also found that crypto enthusiasts were also more likely to act on recommendations made by financial advisors, family and friends, and reporters from specialist publications.
The data also reveals that social media and investment apps like Robinhood are popular destinations for those trying to make purchasing decisions about crypto.
This research comes after Kim Kardashian West endorsed Ethereum Max on Instagram, a coin that’s 3,434th in CoinMarketCap’s rankings with a current price of $0.00000002147.
Morning Consult’s research indicates that approximately one in five American adults heard about this post — delivering “a reach that would make most financial advisors drool.”
The company also described Kardashian’s conversion rate as impressive. Of those who were aware about her promotion on Instagram, 19% ended up investing in Ethereum Max.
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What the Research Tells Us
According to financial services analyst Charlotte Principato, who wrote a blog discussing the findings, these stats are “the latest reminder that cryptocurrency’s audience is radically different from what financial services leaders are used to serving.”
But Principato warned that celebrity endorsements aren’t always a good thing for the crypto sector, and can actually cause trust in such projects to diminish. She concluded:
“Crypto owners do tend to be younger, and younger investors are more likely to say that social media has impacted their financial decisions. Investment leaders will need to remember that although financial advisors are still a trusted source of advice, they’re competing with more sources of information for crypto investors’ mindshare.”
The U.K. Financial Conduct Authority was among those who criticized Kardashian for her Instagram post.
On Wednesday, the organization reiterated its warning to investors about the dangers of cryptocurrencies, telling Britons that they could end up losing all of their money.
