Getting support of famous people is a great opportunity for startups looking to get additional attention to their projects. Luis Suarez and Paris Hilton are among the latest celebrities that used their social media accounts to endorse ICO campaigns.
Still, it may not be the best time to openly promote crytpocurrency projects. No one can deny that participating in token sales is a risky venture. Although being one of the most popular trends in the digital currency sector, ICOs are now facing an increased scrutiny all over the world.
Chinese authorities have recently imposed a ban on all ICO activities in the country, citing high risk of scams. The US Securities and Exchange Commission also warned investors about potential risks of taking part in crowdsales. The agency has recently claimed that some tokens offered via ICOs are actually securities and thus are subject to regulation.
Floyd Mayweather, who is by far one of the most active ICO supporters, seems not to be worried by what’s going on in the industry. The boxing champion has published a post on Instagram, advertising yet another ICO project, called Centra. The startup allows users to spend virtual currency by using its Centra card and Centra digital wallet. The post has already generated more than 258,000 likes.
This is not the first time he advertises the digital currency project. In July, he made a great promotion for prediction company Stox, as it managed to raise more than $30 million in the first two days of the crowdsale.
Last month, Mayweather took to Twitter to speak about the Hubii Network, an Ethereum-based decentralized content marketplace allowing token holders to pay for content online.
The company behind that advertisement is the Crypto Media Group, a digital marketing company which often uses celebrities to market upcoming ICOs. According to a report by Vice, their network includes over 100 million followers across social media accounts on Instagram, Facebook, and Twitter.
“Our goal is to take [the ICO market] from this very small industry of cryptocurrency-focused investors and take it to the masses,” said the company’s CEO Logan Schauer. “We want to help the market transition from where it is now—word-of-mouth spreading through the crypto community—and we want to bridge that gap to the mainstream world.”
Schauer also added that they do not work with projects they do not believe in. “If we’re going to do a deal with an ICO, it’s because we like them and we think it’s feasible,” he said.
Schauer declined to reveal details regarding Mayweather’s compensation because of confidentiality agreements, but said that he will get Hubii tokens. Crypto Media Group will also receive tokens as part of their payment.