The app Cameo, once a unicorn and a pandemic-era distraction, has seen much of its valuation evaporate. The connection-economy darling rose to fame as an app that let users pay for customized messages from celebrities. At its peak in 2021, Cameo’s valuation reached $1 billion before plummeting 90% early this year.
And it just got worse. Last week a consortium of 30 state attorneys general fined Cameo for not properly disclosing when celebrities were paid to endorse a certain product. However, Cameo’s financial situation meant it couldn’t afford to pay the $600,000 penalty levied by the suing states. Instead the company will have to pay only $100,000, according to the settlement agreement.
