3 tips for creators and celebrities looking to get into crypto

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August 7, 2021 6 min read

The opinions expressed by Entrepreneur contributors are their own.

Over the past few years, crypto has become much more widely adopted and understood due to user-friendly experiences that aim to woo the next cohort of crypto adopters. We’re even now seeing some of the world’s biggest designers, celebrities, and athletes signing sponsorship deals or even launching their own tokens.

Although we are still in the early stages, this is a paradigm shift that is here to stay. Creators, celebrities, and athletes should take a thoughtful approach when exploring a sponsorship, partnership, or even launching their own social token.

Here are three tips that designers and celebrities should consider.

1. Don’t rush into a sponsorship or partnership

If you have an active audience and express an interest in the space, crypto companies will come forward for a partnership. As with any sponsorship deal, it is very important to choose credible partners to partner with. You sell this product to your fans and ultimately you want them to benefit from what you endorse. Think about the fundamentals of the technology you are promoting. It is important to do your own research on the origins of the crypto product to understand its vision and business model. Often, research on the founding team will shed light on the caliber and legitimacy of the project. Regulation and compliance are also developing areas that are extremely important to monitor. Speak to your lawyer when weighing your options, and make sure you only work with projects you can trust. Additionally, conduct a media audit to determine if they have been received positively in the press.

And then try to use it. Would your fans benefit from it? If they wanted it, so much the better! You may be helping to bring some powerful new technology into the mainstream. It might even become part of your inheritance. If not, or if you don’t know, maybe you are encouraging them to speculate without doing their research.

Whichever way you decide to get into crypto, it needs to fit into your brand. Find the companies that are building something relevant to what you’re known for. Tom Brady and Gisele Bündchen’s recent partnership with the FTX crypto exchange, one of the fastest growing and most credible projects in the space, is a good example of crypto celebrity sponsorship done well. As part of the deal, the couple received an equity stake in the company, further boosting their credibility as investors in the space. Bündchen will also become FTX’s Environmental and Social Initiatives Advisor, a smart collaboration that strengthens its reputation as an activist while recognizing the company’s intention to reduce its carbon footprint.

Related: 8 Benefits Of Blockchain For Industries Beyond Cryptocurrency

2. Crypto isn’t just about getting rich

One of the biggest misconceptions about crypto is that its only goal is financial gain. One of the most exciting things about crypto is finding interesting and innovative projects that change existing engagement models.

Finance is the most obvious area where crypto will change the status quo. Decentralized finance is an emerging financial system that is gaining ground in trading, borrowing and lending by eliminating the need for third-party intermediaries such as banks using crypto technology. This makes financial tools more accessible and transparent to users, compared to established tools in use today.

Crypto also gives collectibles a digital makeover. Non-fungible tokens, or NFTs, exploded in popularity earlier this year. This technology allows artists and creators to create digital objects in limited quantities. This scarcity creates value that did not previously exist in the cyber world. The technology behind NFTs is still evolving; in the future, DTVs will unlock benefits for their owners and leave a negligible carbon footprint.

But one of the most exciting models that crypto topples on its head is fandom. Crypto has the power to cut out the middlemen – often large tech platforms – and let celebrities and creators handle their financial relationships directly with their audiences.

Related: Cryptocurrency And Taxes: What You Need To Know

3. Rather than plugging into someone else’s crypto project, start your own social token

Celebrities and creators can own their financial relationships with their fans by launching their own cryptocurrency or ‘social token’. In this system, the cryptocurrency unlocks certain benefits or exclusive content for fans, and they can participate in an economy alongside their favorite creators. Instead of using fans as a source of transactional income, social tokens align everyone’s incentives to create a bigger, more vibrant community.

Creating these shared economies isn’t as difficult as you might think: Rally creates tools to help creators build vibrant economies alongside their fans. Not only can you earn income through your own crypto, but you can also invite fans to share your success. This is a great option, especially if you have an active fan base online. The more open a creator is to exploration, the more potential long-term benefits they can unlock.

Grammy-winning rock band Portugal The Man dove into this new digital model of “fan club” where fans can purchase their $ PTM coin to unlock perks like Discord chat access group private and exclusive virtual events. Coin holders can participate in a shared economy alongside the group instead of just functioning as the group’s ATM. But, you don’t need to have a # 1 hit or a Grammy to build a fan economy. Twitch streamer Alliestraza broadcasts card games to her 225,000 subscribers. Allie and her community of token-holding fans have built a vibrant economy by supporting the value of the token with unique benefits such as entries to fan tournaments for various games.

As more creators discover this technology, we will see multi-billion dollar community-driven savings emerge over time.

Related: 3 Popular Myths About Cryptocurrency (& The 1 Truth That Matters Most)

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