https://ift.tt/ixRft90 raises $87 million from celebrity crypto enthusiasts

TL;DR Breakdown

• Crypto payment platform, MoonPay, gets celebrity support and endorsement with $87 million in venture funding.
• The payment platform compares to PayPal but for crypto payments.

According to a press release by the firm, celebrities chipped in with almost 16% of the most recent MoonPay financing round. According to a MoonPay press release on Wednesday, more than 60 musicians, actors, and other celebrities have given over $87 million in the company’s latest round of fundraising.

MoonPay is a fintech firm that offers a crypto “concierge service” for sourcing and purchasing digital collectibles and blockchain-based assets.

MoonPay receives millions in funding from celebrity figures

MoonPay is a payment gateway that enables users to purchase cryptocurrencies and other web3 digital assets with conventional payments. MoonPay describes itself as a sort of PayPal for the crypto economy, allowing transactions between individuals and crypto businesses such as purveyors on NFTs.

The platform allows users to buy and sell digital assets and NFTs using credit and debit cards, Apple Pay, Samsung Pay, or bank accounts. The platform introduces a novel approach to buying cryptocurrencies and crypto-backed items. MoonPay has already raised $555 million in its first-ever financing round, thanks to the technique’s innovative nature.

Venture capital heavyweights and web3 goldrush participants Tiger Global and Coatue let the $555 million round of funding. Currently, the firm’s value stands at around $3.4 billion.

Musicians and celebrities like Diplo, DJ Khaled, Martin Garrix, Future, Gwyneth Paltrow, and Madonna have all used the platform. These stars were intrigued by how simple the solution handled web3 and blockchain-based transactions.

More than $87 million of the $555 million platforms funding has come from Hollywood’s best. The celebrity investor list includes Ashton Kutcher, Justin Bieber, Steve Aoki, Gwyneth Paltrow, Maria Sharapova, Diplo, Post Malone, Drake, Matt McConaughey, Bruce Willis, Mindy Kaling, and Paris Hilton.

Over the past year, several celebrities on MoonPay’s investor list, such as Bieber and Hilton, have invested in NFTs. Since then, they’ve made significant purchases of digital images worth millions of dollars.

The interest among celebrities in crypto-focused financial technology is growing, as evidenced by the recent funding. NFTs and the blockchain technology that supports them have the potential to revolutionize the music, film, fashion, and gaming industries.

Ivan Soto-Wright, CEO of MoonPay, said that NFTs are more than simply JPEGs. He believes they allow artists and creators to receive royalties more straightforwardly. The firm seeks to assist them with plans for the blockchain-based internet – also known as web3.

“MoonPay sees an entirely different format for the entertainment industry,” Soto-Wright said. “My thought was: Let’s build a diversified portfolio of incredible people that represent different industries, and let’s talk about the use cases for their intellectual property.”

Celebrities’ interest in the crypto sector surges

The birth of this new financial entity coincides with the ability of artists to secure financing, manage their intellectual property, and sell their material directly to consumers without the assistance of intermediaries.

According to crypto experts, more than 600 cryptocurrency startups have raised over $12.5 billion in venture capital investment thus far in 2022. Celebrities are leading the charge when investing in the blockchain industry. Cryptocurrencies have recently gained much public attention due to their increased promotion by celebrities like Matt Damon and Kim Kardashian.

Despite the massive crypto adoption and celebrity endorsements, these advertisements are notably silent on a topic that entities largely neglect: the high volatility and investment risks. In recent months, dozens of individuals in the media business have spoken about cryptocurrencies, both their own and other firms and partners.

However, as Cryptopolitan reports, prominent personalities and the crypto market have become a match made in hell. The practice of inviting celebrities to promote cryptocurrencies has grown so prevalent.

Following the success rates, the Securities and Exchange Commission (SEC) has released fake cryptocurrency rules and recommendations from prominent individuals who claim to have invested in the crypto sector. 

In recent years, cryptocurrency trading in Indonesia has grown considerably. Around 4% of the Indonesian population has invested in cryptocurrencies. Moreover, celebrities and influencers in Indonesia have gotten much more engaged with the local crypto investment sector since 2021.

Many celebrities have become brand ambassadors for Bitcoin and cryptocurrency businesses to assist market them and, in essence, raise the trading volume. The celebrity token movement has taken off, especially after Indonesian music legend Anang Hermansyah launched his currency.

Due to the growing interest in blockchain technology, influencers and celebrities are now establishing their own NFTs and cryptocurrency businesses. However, as celebrities create and endorse the crypto sector, regulators are intervening to safeguard investors against excessive crypto frauds.