Last fall, Matt Damon made the decision to oppose Crypto.com and promote cryptocurrencies. He was not the only artist to give financial advice, he was always there: we still remember Catherine Deneuve who promoted the Suez bank in 1987. The following week Suez stock fell. Is Matt Damon ‘s “lynching” justified on twitter?
When the People giving financial advice
Artists and celebrities from all walks of life, the “influential” celebrities who today have always provided financial advice, benefits or money. In her time, Catherine Deneuve received € 400,000 to advertise for Suez Bank, whose share price fell the following week. To promote the merits of the Crypto.com cryptocurrency platform, Matt Damon received a $ 1 million donation to his nonprofit foundation Water.org. We could mention others: of course Elon Musk with his unconditional support for Dogecoin (DOGE) for which we do not know if he gets any advantage, Mc Afee and his support for XVG (Verge) and other more suspicious coins or less. James LeBron has also partnered with Crypto.com and Larry David for FTX. Is this his role? And why are they listened to?
Manipulation, cognitive biases and advertising
We are not here to analyze the human brain, but perhaps to explain how advertising and propaganda use cognitive biases to motivate us to sometimes make irrational decisions, to lose all critical sense, to influence to have. Fashion effect, daily propaganda, assertions of authority, there are many cognitive biases. In the case of Matt Damon or other stars, it is called the “halo effect”: a person who is considered positive in advance (respect, personal success, etc.) will continue in a more natural way. Here’s how an actor is justified in giving investment advice, journalist medical advice or youtuber advice of all kinds. There is no quality required in the field in question: only the Halo effect will come into play.
Matt Damon’s announcement: ‘Fortune favors the brave’
Advertising for Crypto.com by Matt Damon has already caused a lot of ink flowing by the end of 2021. In a more or less subliminal message, Matt Damon makes us understand that by buying cryptocurrencies (on the site in question) , we will be. be part of, like, innovative people. He was even ridiculed by the famous South Park cartoon. The actor may not be qualified to talk about cryptocurrencies (and still maybe if?), But in any case he seems to get no personal benefit from this operation since it will be used for its non-profit basis (improving access to drinking water worldwide).
First time investors are shooting red balls at Matt Damon
As the cryptocurrency market collapses, investors are relentlessly opposed to Matt Damon. Like all accidents, you have to find a scapegoat. We also think of Elon Musk, sued after the fall of Dogecoin (DOGE).
Why does it make no sense to look for a scapegoat?
First of all, when you invest money, you do not do it as a result of an advertisement, because a seller in a suit and tie or “influence” recommends the merits of a product (financial or otherwise). Then because we invest long term without expecting to make x50 in a week. Investors must also have multiple reliable sources to get a clear idea of the validity of their choice: the stock market, real estate or cryptocurrencies have lost a lot. Scams or just bad choices, are not the same thing. Matt Damon, against subscription to its establishment, suggested the benefits of a legal platform, not a scam in itself. He has no control over what investors subsequently bought, and is not responsible for the crash. It is also a safe bet that these same investors would not have given anything to the foundation if they had earned enough money …
First-time investors are currently experiencing the stock market and cryptocurrency crash in panic and looking for scapegoats. But they should know that markets are cyclical and nothing serious, especially if we make wise choices and are patient. Investors panicked 2017 may have made a huge profit on bitcoin (BTC) just waiting a few years.
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Subprime, financial crises, galloping inflation, tax havens … Bitcoin was designed for greater transparency and possibly eventually change the situation. I try to understand this new environment and I try to explain it to myself. The road is long, no doubt, but it’s worth it.