In late January, Indonesian celebrity couples Anang and Ashanti became a hot topic when they launched their own NFT token, ASIX. Prior to launch, they advertised the pre-sale on a YouTube channel with 460,000 subscribers with a video titled “Presale Token ASIX Tonight, Be Prepared to be a Billionaire!”. I explained how tokens sold out within 1 minute during a private sale.
A few days later, Anang posted on social media how other celebrities bought more than Rp100 million and up to Rp1 billion worth of tokens.
But it didn’t take long for the singer, producer, and congressman Annan to receive the bad news. One week after the release of NFT tokens.Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) Tweet ASIX states that it is banned from trading activities because it does not have a legal license.
A few hours later, the value of NFT tokens fell in half and investors began to protest. The ASIX Token ID Telegram Group was asked why the money was suddenly reduced from IDR 10 million to IDR 5 million, as if they knew little or no about the risks.
“Hello, Annan, I bought it for Rp25 million, but now it’s Rp12 million. The fasting month is approaching, so please return the money,” wrote a member of the Telegram group.
Despite the turmoil, the trend for celebrity tokens continues. Later, Wirda Mansur (daughter of the famous Indonesian priest Yusuf Mansur) launched I-COIN. This was even more inspiring as Yusuf took advantage of his position as a renowned religionist to promote Wilda’s latest business venture. Other names such as Dangdut singer Leslie Kejora and former Dangdut singer Angel Lerga also didn’t take much time to create their own tokens.
Indonesians are familiar with the famous names for selling products using stardom. A similar trend occurred a few years ago when a local celebrity (who had no experience as a baker) started selling cakes and desserts. They called the cake a “local souvenir” when they set up shops in various cities in Indonesia under names such as Medan Marper, Semarang Wife Cake, and Surabaya Snow Cake. During their fame, some stores like Syahrini’s Bogor Princess Cake have become a hot topic on social media to line up curious buyers outside their stores. But it didn’t take long for the culinary trend to stop. Most celebrity-backed dessert shops are currently closed.
Business ventures backed by these fame seem to be very beneficial to celebrities in the short term, and there is no doubt that a variety of products will continue to be sold to an enthusiastic audience.
However, Indonesian celebrity NFT tokens have created another kind of controversy, especially due to the lack of digital literacy in the target market. For example, Anang and Ashanty are especially well-known among older Indonesian women who need more information on the topic of digital safety, as highlighted in the Digital Literacy Index.
Investment practitioner Desmond Wira explained via Kompas.com that NFT investments should not be easily persuaded by celebrity celebrities.
“If we buy coins for these celebrities and then we lose money, will these celebrities replace our money? They don’t, right? So we do this Don’t buy these celebrity coins just because we are their fans, “Dezmond said.
Indonesian financial content provider Big Alpha has also expressed concern.
“Cryptocurrency assets do not generate cash flow (unlike dividends on the stock market, coupons on bonds, or rent on the real estate market). The only way to make money is to make it higher to other parties. Selling at a price. It’s a kind reminder. ” Tweet..
The growing popularity of NFTs and cryptocurrencies in Indonesia has also highlighted the importance of digital literacy. Indonesia’s latest digital literacy index has increased slightly from 3.49 to 3.46. As reported by the Ministry of Communications, digital skills and culture are improving, but digital ethics and security are deteriorating. The lowest score was found in terms of digital security. Further analysis of the index showed that digital literacy still needs improvement for the next group: women, low-income earners, low-educated people, and the elderly.
This situation also demonstrates the importance of stricter regulation. In Indonesia, the regulation and supervision of crypto assets is carried out by the Commodity Futures Trading Regulatory Authority, or Vapebuti. The agency will also issue a whitelist of tokens that can be traded in Indonesia to see all the new coins entering the local market. However, digital assets can be publicly promoted by members of the House of Representatives, as shown in the case of trading platforms, celebrities, and even ASIX.
In other countries, such as Singapore, there are stricter regulations. Earlier this year, the Monetary Authority of Singapore (MAS) issued guidelines banning digital payment token service providers from promoting and promoting in public areas and the mass media. They are only allowed to advertise on their own company websites, mobile apps, or official social media accounts.
Given Indonesia’s low digital security rating and the increasing number of local celebrities dropping their own NFT tokens, it is important to take immediate action. Digital literacy needs to be improved and government regulations need to be tightened. Before losing more money, enthusiastic fans know more about idols than the risk of buying unlicensed NFT tokens.
Image Credit: Jeremy Bezanger
