Influential Crypto Supporters & ICO Celebrity Endorsers Charge $105K Per Tweet

    Crypto Platforms Can Improve Their Traffic with $105,000 Tweets from Major Industry Influencers

    “Bounty campaigns” seem to be the latest method of boosting traffic on cryptocurrency platforms. This type of campaign basically involves someone on social media highlighting the benefits of a particular company, for which they receive a substantial payout.

    Many influencers in the crypto world have used this opportunity to add to their wealth, like Paul Angus and John McAfee. Paul Angus goes by “Cryptonomatron” on YouTube, where he reviews the latest ICOs in the industry with his 8,000 subscribers. John McAfee has a long-standing reputation for being a promoter, with his recommendations earning $105,000 for every tweet. These kinds of endorsements can easily be credited for the success of ICO marketing, since many social media websites have decided to ban advertisements for the digital assets.

    ICOs seem to be gaining funds at a much faster pace than before, even without regular advertisements, which is probably why companies are willing to pay top-dollar for the most influential reviewers. Even though some campaign holders say they aren’t costly, there are many critics that believe that this is just an opportunity to mislead consumers. Since ICOs are presently considered securities under the SEC regulations, “bounty hunters” (promoters) may be at risk for punishment if they are considered “unregistered broker-dealers.”

    In reference to this concern, Lex Sokolin of Autonomous Research in London said, “Once it becomes clear that financial outcomes can be manipulated not just by trading but creating perceptions through social media, regulators will take a very hard stance.”

    There are some hunters that already have felt the pressure to get out of these ICO promotions while they’re still ahead. Despite McAfee’s recent success, he has decided to protect the company by withdrawing from the promotion of ICOs and won’t even recommend them at all. On June 19th, he cited that “threat” from the SEC played a role in the decision. Other celebrities have already been warned about endorsing ICOs since November, since most promoters don’t have the technical and financial knowledge to properly judge the investments for others.

    A statement from the SEC Chairman Jay Clayton claimed that ICOs are already on thin ice, trying to get around certain registration requirements that can be considered fraud. Keeping in mind that each ICO is considered a security, any violation by the exchange could result in the promoter receiving legal action as well. This “guilty by association” approach is an obvious way to keep consumers from investing in potentially fraudulent exchanges.

    The SEC isn’t the only entity that wants to shut down these influencers. The Commodity Futures Trading Commission, a United Stated regulator for financial institutions, has encouraged customers to stay away from tokens that they’ve only heard about from social media. These investment opportunities require a lot of research to make the best decision, and social media doesn’t have the best financial compass to determine the least risky direction.

    Despite legal action and warnings from the SEC, bounty campaigns are still widespread, and ICOs haven’t taken much of a hit. In fact, in the first half of 2018, these sales have raised over $11.6 billion towards blockchain-based startups, which is three times the funding accumulated last year.

    Even though the tokens awarded to influencers have little worth at the beginning, the goal is to use the promoter’s celebrity status to gain more popularity and value as more consumers make purchases. The fact that McAfee can easily charge over $100,000 per tweet is a testament to how much value the promotions hold. Anyone that promotes the ICOs either get stock options or a general payout, but the cost efficiency of either still benefits ICOs.

    The only continued concern, other than the legal aspect, is the quality of the information. Though there are some bloggers and vloggers that give a lot of information and advice about cryptocurrency, they are not financial experts, and few have any background in crypto. Cryptonomatron even comments that any user should spend the time to perform their own research. He continued on, saying, ““There might be people that go in solely based on watching my video — I hope that’s not the case. You shouldn’t listen to YouTubers.”

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Ethereum (ETH) Price Analysis (February 27)

    • Ethereum greatly follows the downward trend pattern as price is now falling towards the support level. • Bearish scenario is playing out in the...

    Compound Protocol Moves Towards Decentralization With COMP Governance Token Launch

    Compound users will now wield the power to propose and vote for changes to be implemented on the platform. This aligns with their...

    Stellar (XLM) Price Analysis (February 26)

    Key Highlights XLM/USD price worth has been relatively declining in sequential order. The XLM/USD pair has hit a low value of $0.06000. Caution needs...

    21Shares' Short Bitcoin ETP (SBTC) Listed on German Stock Exchange, Boerse Stuttgart

    On February 25, Boerse Stuttgart, the second-largest stock exchange in Germany, announced it had begun listing exchange-traded products (ETP) that are inversed with the...

    Bitcoin (BTC) Price Analysis (February 26)

    Key Highlights BTC/USD market has fallen under selling pressure after a line of range movements. One of the vital bearish restraining points at $9,000...

    Malta Financial Services Authority Addresses The Challenges With Security Token Offerings

    On Tuesday, Malta's Financial Services Authority (MFSA) published a document providing answers to questions relating to security token offerings (STOs) in the country. The watchdog...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.