Are Most Celebrity-Backed Cryptocurrencies Scams?

Some celebrities have given their endorsement of cryptocurrencies on social media, for instance, an investment fund created by Paris Hilton and Floyd Mayweather called Stox (STX). Other celebrity-backed cryptocurrencies include KodakCoin (KDC), endorsed by film producer Steven Bing and professional boxer Evander Holyfield. There is also the Coinye West (COINYE), based on a cartoonish image of Kanye West.- Cryptocurrencies Scams

The Uptick in Celeb Coins

The last several years have seen a boom in celebrity-backed cryptocurrencies, with everyone from Paris Hilton to Floyd Mayweather investing in new coins. However, it’s important to remember that celebrity endorsements are often not what they seem. Often these endorsements are just paid promotions where the celebrities don’t know anything about the projects they’re endorsing other than what their managers and handlers tell them.

What’s more, even if a celebrity is heavily involved in the project, they’re lending their name to, that doesn’t mean investors will see profits. Celebrities aren’t usually entrepreneurs or business people and may have little idea of how to create a successful business. 

If your investment hinges on the involvement of one specific person or company, think long and hard about whether you can afford to gamble your money on this. You should also keep an eye out for red flags such as unverifiable claims about the blockchain being hack-proof or similar overblown hype.

The Paris Hilton Cryptocurrency- Cryptocurrencies Scams

Ten years ago, Paris Hilton launched a cryptocurrency called the COIN. It was meant to be a security, but it was quickly discovered that the cryptocurrency value was nil. At first, the name of the coin was not even an acronym. Rather it was an initialism for “credit out at no interest.”

The creators of this scam were very inventive with their marketing methods. They approached celebrities like Paris Hilton to make it seem like she endorsed their coin and promised that she would pay you back if you invested in it. The whole thing turned out to be a sham, and once the scam was revealed, Paris Hilton’s endorsement became disproven by her statement. 

The Mike Tyson Cryptocurrency- Cryptocurrencies Scams

Mike Tyson is a former world heavyweight champion boxer and a known cryptocurrency prices watcher. Mike Tyson Bitcoin (BTKO) is the most commonly used name for this particular crypto coin, but you may see it referred to as Crypto Mike on certain platforms.

In 2014, Mike Tyson launched the Mike Tyson Digital Wallet, which is available through iTunes. This mobile app allows users to send and receive bitcoins safely anytime, anywhere. It also securely stores your wallet’s private key on your phone instead of taking up valuable space on your computer or device. 

The wallet even allows you to instantly check its balance using only a 4-digit pin code so that you never have to worry about forgetting your password or being locked out of your account due to errors in typing or memory recall.

The app’s interface shows users information such as their current balance and alert levels for various currencies.

The Ashton Kutcher Cryptocurrency- Cryptocurrencies Scams

Kutcher is a well-known supporter of bitcoin and other cryptocurrencies, so it’s no surprise that he’s launching one called A-Coin. He describes it as a way to “empower” people to donate money to charity.

The Dennis Rodman Cryptocurrency

It launched in 2014 as a marijuana purchasing solution. The idea was to launch a coin in the cryptocurrency markets that could help facilitate pot-related transactions without the need for cash or credit cards. At the time of its launch, this was an innovative use of blockchain technology.

The coin logo is a cannabis leaf. In addition to being used as a way to buy weed legally, Potcoin users can also exchange their coins for Bitcoin at any time through an online interface.

The founder is Dennis Rodman. He has been promoting cryptocurrencies since 2014 because he believes they will eventually replace all government-issued fiat currencies. He also believes it will be used worldwide by weed dealers and other criminals who don’t want their names attached to illegal purchases.

The Risks for Celebrities

Celebrities who endorse ICOs could be violating anti-touting laws if they do not disclose compensation for endorsements. This can lead to further problems if an ICO turns out to be fraudulent. Any endorsements made by those involved may make them liable as well under securities fraud law. 

Jimmy Wales has called this behavior unwise and warned against celebrity token offerings on Wikipedia’s official fundraising page stating that their association with such scams erodes trust in both organizations. 

This can lead to legal action being taken against them by SEC or FINRA, as well as damage control being done by companies that have tokens associated with them which could hurt all involved parties and potentially destroy their reputations permanently while endangering others who do business with them. 

In some cases, the transaction was a publicity stunt or a way to use the brand power of celebrities to raise money for other projects. In other cases, it appears that celebrities were fooled into thinking the cryptocurrencies were legitimate business opportunities or into thinking that these coins were valuable investments. 


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