Many investors have burned their hands in questionable ICO’s. However, the trend of celebrities backing these ICO’s continues. The latest to join the list is Steven Seagal who is backing questionable ICO Bitcoiin.
The news was confirmed by his latest tweet. The nature of the cryptocurrency is not just suspect due to the extra I but also there are quite a few other things due to which, the cryptocurrency is questionable.
From Team Seagal
Steven Seagal has just become the worldwide ambassador for the Bitcoiin 2nd Generation crypto currency.
You can sign up for the Bitcoiin-2nd Generation here
Using Referral Code “Segal 9”
— Steven Seagal (@sseagalofficial) February 19, 2018
Different from its name:
Inspite of having the name Bitcoiin, it is actually based on Ethereum blockchain. As per a comment by the celebrity, the ICO also has an affiliate program with pyramid-based payments.
Another flag which stands out clearly is that the white paper is not filled with a lot of details. Most of the cryptocurrency investors look into the white paper to find out whether the cryptocurrency is legit or not. When the white papers consist of very little details, automatically most of the investors are actually skeptical of the cryptocurrency.
In November of last year, the SEC clearly warned that fraud ICO’s, as well as fraud companies, can use celebrity endorsements in order to attract investors. It also clearly stated that in such cases, some of the liability might fall on the celebrity as well in case, the ICO is not legit. Also, it stated that most of the celebrities do not have the technical expertise in order to judge the ICO. This is the reason why they are not able to judge the ICOs which they are endorsing currently.
Even after clear statements by the SEC, Steven Seagal backed the controversial ICO. It remains to be seen whether it is actually a shady offering or whether it is a legit cryptocurrency. Only the future will be able to tell whether it was right on the part of the celebrity to endorse the ICO or not.
The investors presently are much more aware of researching the ICOs before investing. In the past, there have been few other ICO’s which have been just hype and not substance. This is the reason why a lot of the investors have actually lost a significant amount of money. It remains to be seen whether the ICO is able to gain traction just because of an endorsement by a celebrity. Many of the cryptocurrency investors these days have a lot of legit options to pay attention to. In all probability, the ICO will not be able to sail through due to the shady practices.