Logan Paul posted on Twitter to his six million followers that he was “all in” on the Dink Doink cryptocurrency. Click this image below to start your bitcoin journey.
The person who thought of the company said that people who put money into Dink Doink would get shares of a cartoon character. People who bought these shares would get a cut of the money made if the character with the big eyes ever showed up in a movie or TV show.
Paul, a 27-year-old boxer and social media star liked Dink Doink’s podcast “Impulsive” again in June 2018. He had already said nice things about the product on Twitter and in a public Telegram chat.
But by the middle of July, the price of Dink Doink had fallen to less than a cent, and Paul was getting bad reviews online. He didn’t say in his endorsements that he knew the person who started the project or that he and that person came up with the idea for the cryptocurrency on their own. When Dink Doinks first came out, a lot of them were given to him.
Because the value of cryptocurrencies has been going down recently, people are paying more attention to celebrities who try to sell them to the public. In the past year, famous actors and comedians like Matt Damon and Larry David have lent their voices to TV ads for bitcoin platforms.
Digital assets are made to look like an irresistible way to make money in these ads. People who didn’t believe in cryptocurrencies were critical of the ads, even though they were for companies that made hundreds of millions of dollars.
Bitcoin ads on social media have become a lot shadier, with big promises of wealth and hidden conflicts of interest. Influencers like Kim Kardashian and Floyd Mayweather have made a lot of money by telling people to invest in bad cryptocurrency.
Some of these schemes involve getting collectors to buy rare coins that suddenly lost value and selling small collections of NFTs, which are digital data that can only be used once.
.Some promoters, like Paul, have admitted that they broke federal rules about marketing by not saying if they had any personal or financial ties to the businesses they promoted on their feeds. This proves that the government’s rules weren’t followed.
Even before the price of cryptocurrencies started going down, many of these businesses that were backed by influential people had already failed in a big way. This hurt traders who didn’t know much about money, and it led to lawsuits that could force some celebrities to pay investors back for their losses.
John Reed Stark, who used to run the Securities and Exchange Commission’s Internet Enforcement Branch, said that “celebrities and other people who are not at all objective or impartial” are being used to make money. He said, “Celebrities and other people are being used in a dishonest way to make money.” Bad things are probably going to happen.
Entrepreneurs in the cryptocurrency industry use “influencers” to create buzz on the internet. This is how a fake currency based on a meme became, for a short time, one of the most valuable crypto investments. Most of the time, these influential people come from social media sites like Twitter and Reddit.
People outside of the crypto field may not know who some promoters are, but they have a lot of followers on social media. On these sites, people give advice about the market and share information that other people have paid for. On the list are also people like Kim Kardashian, who is being sued by investors in cryptocurrencies because she promoted the EthereumMax cryptocurrency.
Cryptocurrency users could get a lot of money from other planets. The New York Times got a presentation that said NFT company Hive Investments had offered up to $400,000 to people with a lot of power to work with them.
The movie “The Wolf of Wall Street” came out in 2013 and was based on Jordan Belfort’s book of the same name. Belfort got a $250,000 offer. Belfort said no because he had just started a new job as an expert on bitcoins.
How to market cryptocurrencies is not set in stone. Federal law says that anyone who sells securities must say how much they were paid to market the securities. Floyd Mayweather has agreed to pay more than $600,000 to settle SEC claims that he lied about how much he was paid to promote ICOs (ICOs).
Initial coin offerings are like initial public offerings on Wall Street, but instead of stocks, they use digital currency. But the law he broke only applies to things like company stock, and it’s not clear if crypto-assets meet this requirement.
Promoters of cryptocurrencies may also be breaking Federal Trade Commission laws, which say that all marketers have to say if they have any financial ties to the businesses they support.
Fans were told to use EthereumMax to buy tickets because the event was meant to raise awareness of cryptocurrencies,