Business 28 November 2018

Erik Gibbs

Crypto reviews available for purchase, degrading industry integrity

There’s nothing wrong with a little positive publicity, unless that publicity is fake. A report by Reuters points out that companies have the ability to buy cryptocurrency reviews in order to promote their products. Even John McAfee has offered to promote a project for a price. This seriously undermines the integrity of the entire cryptocurrency industry and is probably why so many initial coin offerings (ICOs) have failed this year.

According to the report, “Self-proclaimed social media personalities charge thousands of dollars for video reviews. Research houses accept payments in the cryptocurrencies they are analyzing. Rating ‘experts’ will grade anything positively, for a price.”

The media outlet indicated that the practice is widespread and “common.” It pointed out how a Ukrainian startup, Hacken, was looking to promote its coin in 2017, ultimately turning to almost 200 cryptocurrency “social media personalities” to help them. Hacken gave $7,500 to Christopher Greene, host of Alternative Media Television on YouTube, to review its coin. At one point in his promotional video, he called Hacken a “huge market opportunity” with “potential 1,000x returns.”

Four days after the video was published, the price of Hacken’s coin had increased by 14%, according to a tweet posted by Greene. It also produced more than a few buyers. One, a yoga instructor in Canada, responded to the tweet, saying, “That Hacken video was great man! Made me buy a couple hundred.”

Now, however, the price is not so right. It has fallen over 75% and now sits at $0.36. Hacken’s CEO, Dmytro Budorin, has admitted that the practice of paying for reviews is unethical. He added that the reviews “should be either done with (a) sponsored tag or only for projects that (the) reviewer personally supports.”

The example is a good reason why ICOs are so sketchy. On the surface, they may appear to be legitimate and may even have a lot of positive public opinion. However, there’s no way to know if those opinions are real or purchased. There’s a good chance that any reviews found are not accurate assessments of the projects. Given that more than 75% of the ICOs have failed in the past year, it would be wise to consider alternative investment vehicles and avoid the questionable practice completely.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

CipherBlade share a lesson about crypto theft

Business 24 May 2019

CipherBlade share a lesson about crypto theft

Coinomi have been blamed for losing a customers funds, but a new investigation shows they probably weren’t to blame at all.

Read More
Brazilian police arrest culprits behind $210 million crypto scam

Business 24 May 2019

Brazilian police arrest culprits behind $210 million crypto scam

Brazil has cracked down on a massive pyramid scheme that brought in over 50 thousand victims.

Read More
Russia’s central bank expects crypto regulation bill in spring

Business 24 May 2019

Russia’s central bank expects crypto regulation bill in spring

A member of the Central Bank of Russia says she expects crypto regulations to kick in sometime in the spring of 2019.

Read More
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]