Some people may have been curious where Money Mayweather heard about initial coin offerings and cryptocurrencies, but it’s not hard to learn in our modern times. Sources close to the matters are always willing to speak, and sometimes the subjects themselves have no problems divulging who’s backing them.
However, this journalist spends much of his time analyzing ICOs. As such, he wants to warn people to be careful of worrying too much what any celebrity has to say. Yes, it’s entirely possible to put large of sums into the crypto market and prosper. It’s also entirely possible to lose. It’s even easier to just buy and hold, which is something we have to reiterate in times like these.
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In fact, let’s say that one more time. While we’d never discourage anyone from getting into cryptos, as part of the cryptocurrency world, it’s the news publications’ obligation to remain skeptical of things which are extremely risky, such as ICOs. We saw recently a lot of confidence and hype poured into Enigma, then the thing was hacked and lots of money went missing. That they are giving the money back doesn’t do enough, one doesn’t think, to really bring back the confidence.
And this is the point: people are over-confident in ICOs. FOMO has gone into hyperdrive. This time around, as pointed out by TwoBitIdiot, everyone’s complicit. Everyone’s in on it. The big firms that are entering are playing the price inflation games too, everyone’s chasing dollars and Bitcoin valuations, and no one is doing enough thinking about soundness of the products they’re getting involved with. Beginning a culture-wide sobriety regarding these high-yield investments can soften the damage that some of the worse amongst them are going to do the market.
It’s worth keeping in mind, at least.
So Mayweather can promote ICOs all he wants, but news sites and jouranlists in the cryptosphere are obligated to be more, not less, skeptical when they witness such things. In this regard, readers will have some places they can trust to be wary of all but the really brightest things in the space. In an ideal world, such a standard would have emerged, but we have seen everyone get taken for a ride at least once.
Scamming is in high-gear in the cryptocurrency world. We have to be extra-vigilant, and ever-more cautious in securing our coins. We also have to be less willing to jump on new things we may not fully understand. If you’re not a professional who can read a smart contract that has yet to be audited by anyone who can, then you probably should reconsider sending any money for such a thing. There could be things in there you don’t understand.
The point is, while we know that a certain firm is behind the Mayweather promotion of an ICO, we also know that he probably did make money in that venture, so he wasn’t making it up. We have to ask ourselves how much of the old world problems such as celebrity endorsements that we actually want to bring along for the ride. After all, celebrities have a habit of saying what they’re paid to say. It could be better to trust in the fundamentals, teams, and ideas, rather than invest in things that might be unsound but are well-represented in the media.
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