Boxing champion Floyd Mayweather recently joined a growing number of investors around the world drinking the proverbial “ICO Kool-Aid.”
Recently, in an Instagram post that attracted media attention, Mayweather announced that he will promote an ICO through Stox, a blockchain-based prediction firm, in its fight with Conor McGregor on August 26.
This underscores a growing concern in some circles about the irrational ICO bubble, which has no choice but to erupt at any moment.
“Irrational exuberance” is a term used by former Federal Reserve Board Chairman Alan Greenspan in a 1990 speech delivered to the American Enterprise Institute during the ‘Dot Com’ bubble. The phrase is now often used as a warning siren, pointing out that a market may be overheating and is likely to pop.
The participants of an ICO invest money, receiving digital “chips” in return.
Part of Mayweather’s ICO exuberance can be attributed to a $ 22.2 million declared IRS tax with which it is charged.
According to Jan Isakovic, CEO of Cofound.it, a global blockchain platform that connects exceptional startups, experts and investors worldwide, “it’s easy to understand the appeal of the crowdfunding token; this is the first time the public In general can participate in the early stages of building future platforms and companies worldwide, but with that great promise comes a great risk”.
But certainly as the activity is not yet regulated, large projects are next to projects of dubious nature and are usually the dubious ones that have the most vague websites.
Understanding these investment risks also involves understanding the objectives of the project you are planning to invest in, your target user base and your marketing power before you participate. For this, each project must have a publicly available “whitepaper” and comments available online that can help potential participants to better understand the probability of success of each project in the long term.
We’ll see how things work out while the boxing champ throws or gets maybe a hard left hook.
We invite you to follow the day by day about the cryptocurrencies, blockchain and bitcoin world at Crypto-economy.