Some influencers on social media platforms are making thousands of dollars for each promotional video they make for various cryptocurrency projects.
While Armstrong says he stopped accepting paid promotions in January, other influencers still swarm this lucrative market. CNBC found that some of these online personalities get paid thousands to endorse dubious projects. This spring, an anonymous blockchain sleuth posted a list on Twitter naming 44 YouTube crypto personalities and their prices for paid promotions. Some of these influencers were paid as much as $65,000 for a single promotional video, according to that list.
CNBC reached out to these influencers on the list to verify their fees: Some said the prices were inflated, and those willing to share their pricing said they made a minimum of $1,000 for each promotional video. But state regulators warn that there are still influencers who lack transparency. Joe Rotunda, the director of the enforcement division of the Texas State Securities Board, said he's seen paid promotions that are not only undisclosed but are pushing fraudulent ventures.Rotunda and a team of regulators recently filed enforcement actions against two casinos in the metaverse, the new digital frontier where users can attend virtual concerts, purchase digital assets or even gamble at a casino.
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