Bloomberg: crypto projects promoted by influencers may face U.S. regulator's scrutiny

In March, as the cryptocurrency market experienced a surge with Bitcoin nearing record highs, certain investors known as "key opinion leaders" (KOLs) significantly benefited. According to Bloomberg, these KOLs are able to invest at discounted rates, highlighting the need for investor vigilance when such figures are involved in a project. These investment opportunities, dubbed "KOL rounds," are reminiscent of the celebrity endorsements previously under scrutiny by U.S. regulators. As the market rebounded from a downturn, the prominence of these deals has grown. However, unlike earlier instances involving celebrities, the focus has now shifted to cryptocurrency bloggers and influencers. These KOLs often receive perks like valuation discounts and shorter vesting periods for promoting specific crypto projects. Michael Selig, a partner specializing in securities law at law firm Willkie Farr & Gallagher, commented on the situation in an email to Bloomberg, explaining that projects involving KOLs and influencers, who are expected to promote the project’s token as an investment, might be scrutinized by the U.S. Securities and Exchange Commission.