Soccer star Cristiano Ronaldo now faces a $1 billion lawsuit for appearing in ads promoting Binance, the world’s largest cryptocurrency exchange. Ronaldo, whom the suit accuses of knowingly promoting suspicious, if not criminal, activity, is just the latest star to get wrapped up in a crypto scandal. And it comes after many of the stars of crypto, including Binance’s founder, Changpeng Zhao, affectionately known as CZ in the business, have fallen.
Whatever the outcome of the suit against Ronaldo, or the upcoming criminal sentencing of CZ, it’s clearly the end of an era – the “crypto celebrity” era. CZ is perhaps the last of the celebrity crypto figures, known for their fast lifestyles and bending of the rules. Apparently, CZ bent the rules a bit too far, as did crypto compatriot Sam Bankman-Fried and others. This star power blinded many to the corruption in their operations, and served as an impediment for crypto becoming a mainstream financial asset. But with the end of the crypto celebrity era, serious investors can now focus on crypto for what it really is – a fair and equitable asset that could revolutionize the way people invest and do business.
‘Star Power’ Promoted – and Corrupted – Crypto
Star power was indeed an important factor in crypto sales. Ronaldo was just the latest celebrity to be sued for lending his name and reputation to what turned out to be nefarious activities by bad actors; celebrities like Tom Brady, Stephen Curry, Larry David and others face pending lawsuits for promoting SBF’s failed FTX exchange. In Ronaldo’s case, the $1 billion class-action lawsuit against him cites him for utilizing his image and influence to promote “unregistered securities,” NFTs bearing his image, that Binance was selling. Ronaldo should have investigated Binance’s business model before using his outsized influence to advance sales of that questionable asset, the suit charges.
CZ himself was the ultimate crypto personality, and he, too, has been brought low by investigators, charged with failure to prevent money laundering, register as a money service business and violating U.S. sanctions. Under a deal with the DoJ, Binance will pay $4.3 billion in fines in order to continue operating. CZ himself will pay a $150 million fine for his role in the scandal, and faces up to 18 months in prison.
The End of the ‘Star Power’ Era is the Beginning of the Real Decentralized Crypto Era
Some in the anti-crypto crowd hope that the fall of CZ and the other crypto stars is an indication that the crypto fad has run its course. But it actually means the opposite; the demise of the crypto stars who lived the high lives – at the expense, it turned out, of average investors who were attracted to what they were told would be a more equitable and fair investment asset. Now, investors will be able to see crypto for what it really is.
Crypto, absent these scandals and corruption,can be a transparent and equitable vehicle for people around the world to invest, enabling users to buy and sell using an internationally recognized stable currency that is not subject to the whims of central bank manipulation. When its leaders follow the rules, crypto has the ability to open up business opportunities for people around the world, providing equal access to everyone from the wealthiest magnates of the West to the poorest jute farmers of Africa. This is what crypto is – and has been from its inception.
Bringing Crypto–and Opportunity– to More Investors
Without the corrupt and illegal behavior of crypto personalities that has plagued the sector until now, regulators are likely to be more amenable to give their blessings to crypto ETFs and other investment vehicles. Several large financial institutions have applied to launch such ETFs, but the regulatory response has been slow so far. Finally, approving instruments like these EFTs will help bring crypto into the mainstream financial system, creating an innovative asset that investors and banks will also see as legitimate and trustworthy.
The unfortunate scandals that have plagued the industry have been largely due to the influence of the stars – both big and small – who led investors astray with get-rich-quick stories, evidenced by their got-rich-quick lifestyles. “Star power” got in the way of crypto’s essence. With the setting of crypto’s stars – thanks to government action against these bad actors, crypto can now shine, as it was meant to. People will finally have the opportunity to see crypto for what it really is – as a new and liberating way to do business and invest, giving the power of the purse back to the people and allowing for freer trade and investing, with the commensurate benefits for everyone involved
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