From yachting with Selena Gomez to doling out TaTaTu tokens to movie stars, one producer’s road to Hollywood was paved with ICO excess.
ICO embracement by celebrities has continued by Wu Tang Clan member Ghostface Killahm who apparently co founded an ICO that he is hoping will raise upwards of $30 mln.
In the past, these approaches were more than welcomed by the cryptocurrency community, but as time passed and events of many kinds have taken place, there are very mixed reviews upon the case as many worry that ICOs cannot stand on their own and are being pumped.
The company which is co-founded by Ghostface – Cream Capital, stated that its target is to raise around $30 million through the initial coin offering, which method has come under a lot more scrutiny many times previously.
Brett Westbrook, chief executive at Cream Capital, also calls for caution when it comes to these types of celebrity endorsements, stating that there should be a strong understanding of the Blockchain Technology underpinning them.
“I think the interest of celebrities is a bit of a double-edged sword,” Westbrook explained. “I personally think that anything that puts cryptocurrencies in front of the eyes of everyday people is a great thing for the markets overall. On the other hand, I believe it’s important that celebrities know the importance of their endorsements and understand the underlying principles of Blockchain technology,”
“The last thing we need is a household name promoting what turns out to be a scam ICO,” he added.
The name is an acronym by the very famous Wu Tang Clan hit – Cash Rules Everything Around Me, in which cash is replaced to Crypto.
Cream Capital is planned to be a form of a virtual currency which will give the possibility to be used in any store or other vendor by being implemented into debit cards.
Cream Capital said it has operational cryptocurrency ATMs active in North Carolina, and intends to capture “more than half of the global cryptocurrency ATM market” by 2020.
Music producer DJ Khaled has become the latest in a line of celebrities promoting blockchain token sales, or initial coin offerings (ICOs), on social media.
An Instagram post uploaded yesterday, features the DJ holding a new cryptocurrency debit card called Centra, while brandishing a bottle of vodka.
A caption describes the Centra card and wallet as the “ultimate winner” in debit cards powered by tokens.
The company in question, Centra, recently completed a launch of its own token called CTR to power its services. A total of 100 million tokens are to be created, according to the firm’s website.
World-famous boxer Floyd Mayweather advertised the same company on his Instagram feed earlier this month. Mayweather has previously suggested he is involved in a digital marketing company, the Crypto Media Group, which Vice reported is courting celebrity endorsements for cryptocurrencies.
A number of celebrities have taken to social media in recent weeks to promote blockchain token sales of various descriptions.
Rap artist The Game, actor Jamie Foxx and celebrity heiress Paris Hilton have all jumped on the crypto token bandwagon within the last month.
Speaking to CNBC, bitcoin author and advocate Andreas Antonopoulos argued the trend is evidence we have reached “peak ICO.”
“The worst reason to make an investment is a celebrity endorsement. Unfortunately, this tactic works, and that’s why they’re doing it,”
Usually involving the sale of blockchain-based tokens in order to finance a company or project, ICOs have exploded across the crypto landscape in recent months. Total cumulative funding produced by the schemes amounts to $517 million in September alone, according to CoinDesk’s ICO Tracker.
DJ Khaled image via Shutterstock
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