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Why Celebrity Coins Keep Failing: Another Flop as Ghostface Killah's Drops 96%

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  • Darryn Pollock
    ⭐ Features

    Celebrity backed and created coins were a huge fad at a stage, but many of them have not gotten off the ground

Why Celebrity Coins Keep Failing: Another Flop as Ghostface Killah's  Drops 96%
Cover image via u.today
ByBit

In the boom of ICOs it was popular to try and get a celebrity endorsement, or even for celebrities to use their way to start their own versions. However, as time as gone by, many of them have become pure failures.

The latest celebrity coin to become a major flop has come from Wu Tang Clan’s Ghostface Killah and his CREAM coin which as dropped 96 percent since its inception in January this year.

But CREAM is not the first coin to flop with Centra another, which was backed by Boxer Floyd Mayweather, having seen the SEC call it a fraud and charging its founders.

Not the CREAM of the Crop

CREAM was hopeful of raising $30 mln in its ICO however, things have not gone well for the music star-backed coin as it has dropped 96 percent. The token initially went on sale back in November of 2017, when coins were sold for as little as $0.02 per coin.

It then spiked in January to a high of $0.12, before being hit with a downward wave that struck the whole cryptocurrency market. The current value of the coin is just $0.0045.

Warning signals

While celeb-coins are nothing new, the warning that have come with them have been around for almost as long.

Andreas Antonopoulos, an early Bitcoin investor, and well-respected voice of cryptocurrency warned against such investments in these celebrity-backed coins. He said:

"The worst reason to make an investment is a celebrity endorsement. Unfortunately, this tactic works, and that's why they're doing it.”

Centra knocked out

Centra is another company that went the way of celebrity endorsement and felt the sting of basing their entire hope on one gimmick. Mayweather was pictured in September promoting Centra, a cryptocurrency project that raised over $32 mln during its ICO.

However, it only took six months for the project to fail as the SEC got involved and indicted the three co-founders for securities and wire fraud.

DJ Khaled was another celebrity that was in on the Cetra promotion racket as he made an Instagram post promoting Centra and its ability to be used in the same way as a debit card.

DJ Khaled

 

Bitcoiin2Gen pyramid comes crumbling down

Steven Seagal, the famous action movie actor, was also part of an ICO which was quickly labeled as a pyramid scheme which quickly came crashing down.

Bitcoiin2Gen was launched in January, with Seagal named as a brand ambassador. But just after the ICO ended, Segal and the coin’s founders parted ways, then, soon afterwards, Tennessee Department of Commerce & Insurance (TDCI) Securities Division issued a warning to consumers about the nature of the project.

Game over

The Game is another celebrity that endorses a Blockchain project that was focused on the emerging marijuana market growing in the US. Paragon Coin was going to build a marijuana Blockchain environment, however, the project ultimately flopped when they failed to register the ICO with regulators- leading to a lawsuit from investors.

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About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.

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Bitcoin Can Be Stopped by Governments Simply, Crypto Expert Says, Here’s Why

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  • Yuri Molchan
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    While replying to a utopian tweet of a crypto trader about how the government can stop BTC, Alex Kruger suggests a method that he believes is simpler

Bitcoin Can Be Stopped by Governments Simply, Crypto Expert Says, Here’s Why
Cover image via 123rf.com
ByBit

Bitcoin was designed as a decentralized alternative to the current financial system offered by banks and governments. The recent examples of this system on the march are the Tron CEO Justin Sun and a venture capitalist Roelof Botha getting their accounts frozen by the Bank of America.

This is impossible with crypto assets unless they are stored on a centralized crypto exchange obedient to the governments. Still, gradually, crypto experts are starting to imagine a state of things in which government would indeed be able to stop Bitcoin from becoming popular. ‘A prevention is better than cure’ principle is working here for them, perhaps.

Bitcoin can be stopped by lack of financial surveillance

This theory was suggested by the crypto trader, Bitcoin lover, @Rhythmtrader. He logically believes that people would choose to give up BTC if the governments would even care to offer them something much better – lack of financial surveillance, elimination of capital controls, no inflation. Sounds quite sarcastic. 

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Bitcoin can be stopped if the governments short it

Another crypto expert, a trader Alex Kruger, believes that in theory there is a much simpler way to stop Bitcoin – a method based on lack of interest from investors. The majority of the crypto community, most likely, is looking forward to the day when they can buy a Lambo or a new house with their BTC yields.

Kruger believes that for the governments to reduce people’s interest here it is enough to short BTC permanently and keep the price below $1,000 for a long while.

Some disagree with the first trader, saying that there is no need for the governments to stop Bitcoin and naming things that prevent a global BTC adoption from happening.

BTC unstoppable
Image via Twitter

 

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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