Promoting cryptocurrency has become a lucrative venture. Especially when celebrities get involved, the media headlines will follow. For rapper The Game, promoting ParagonCoins may have been one of his worst business decisions to date.
ParagonCoins Fails to Deliver
Over the years, there have been numerous cryptocurrency projects targeting the marijuana industry. Some coins are remotely successful, whereas others simply disappear into obscurity. For ParagonCoins, the initial expectations were quite high. It was designed to change the weed industry altogether, albeit things never materialized in this regard.
One of the reasons why this project garnered attention was due to celebrity endorsements. The Game, a well-known rapper, was actively involved in promoting the company. Because of his involvement, The Game is now part of a multi-million dollar lawsuit involving this troubled project. Helping market a brand with few honest intentions is problematic, especially for celebrities.
Initial promises made by ParagonCoins were never fulfilled. Tracking every stage of cannabis cultivation sounds good on paper. In the real world, it is very difficult to do so. Entrenching blockchain in the supply chain industry will happen sooner or later. For ParagonCoins, however, it seems that infrastructure was never built in the first place.
Another ICO Turns to Dust
While it is true Paragon successfully raised money during an ICO, the money was spent in a very different manner. It appears real estate has been purchased with the money. As such, it would appear the creators of this project enriched themselves, first and foremost. Deceived investors are not too pleased with these developments and demand their money back, for obvious reasons.
https://twitter.com/thegame/status/895757688927248384
Additionally, The Game may face even more legal trouble. He is named as a member of the advisory board of Paragon. If that is indeed the case, he can be held partially responsible for this defrauding of investors. It is another example of why ICO endorsements are fraught with peril. Legitimate projects don’t need the help from celebrities whatsoever. The ones with less than honest intentions often use this marketing method to gain immediate traction.
Sadly, it is not the first time a celebrity endorsed an ICO. Nor is it the first project to defraud investors after receiving celebrity backing. Centra, for example, faced a similar fate despite the help of Floyd Mayweather. John McAfee is no longer tweeting about ICOs due to “SEC threats.” A very interesting development well worth keeping an eye on.
Is The Game liable for the money misspent by Paragon? Let us know in the comments below.
Images courtesy of Shutterstock.