The SEC is warning the public about taking celebrities’ advice to invest in token offerings or ICOs without conducting due diligence, and suggested that celebrities who promote investment in certain digital assets may be doing so illegally.
These warnings come after several months of celebrity endorsement for token offerings. These personalities include Floyd Mayweather, Ghostface Killah, DJ Khaled, Jamie Foxx, and Paris Hilton.
The US Securities and Exchange Commission’s (SEC) issues a public statement warning that celebrity endorsements of token offerings “may be unlawful if they do not disclose the nature, source, and amount of compensation paid, directly or indirectly, by the company in exchange for the endorsement.” Initial coin offerings have become a popular way for startups in the cryptocurrency imarket to fundraising or crowdsale.
Bottoline is do your own research, and do not blindly invest on any hypeD or celebrity endorsed tokens. Be responsible for your finances and do not invest with scared money.
Best Endeavors.