Cristiano Ronaldo, the globally renowned footballer, is currently embroiled in a legal battle in the United States due to his promotional activities for Binance, the world’s largest cryptocurrency exchange.
This class action lawsuit stems from claims by plaintiffs who allege that Ronaldo’s endorsement influenced them to make investments that resulted in financial losses. They are now seeking damages exceeding $1 billion.
In November 2022, Binance and Ronaldo launched the “CR7” collection of non-fungible tokens (NFTs), named after Ronaldo’s initials and shirt number.
Ronaldo, known for his extensive branding from footwear to fragrances, touted this partnership as a way to “reward fans” and “change the NFT game.” NFTs, which are digital assets signifying ownership of items like online images or videos, have become a significant trend in the digital marketplace.
The lawsuit revolves around the claimants’ belief that Ronaldo should have disclosed his compensation for the endorsement, which he allegedly did not do. This lack of transparency, according to the plaintiffs, contributed to their decision to invest and subsequent financial losses.
Despite this legal challenge, it appears that the partnership between Ronaldo and Binance may continue. Ronaldo hinted at future collaborations in a recent social media post, suggesting that they are “cooking something up.“
This lawsuit against Cristiano Ronaldo underscores the complexities and risks associated with celebrity endorsements in the volatile cryptocurrency market. It highlights the need for transparency in promotional practices, especially when dealing with investment products. This situation serves as a cautionary tale for marketers and investors alike, emphasizing the importance of clear communication and ethical standards in advertising and investment endorsements.
