【2016 Archives】

Questionable ICOs016 Archivesleft many investors with Exit Wounds, but that hasn't stopped Steven Seagal from backing one.

The '90s action star became the worldwide ambassador of a cryptocurrency called Bitcoiin 2nd Generation, news that he confirmed on his Twitter account.

If the double "i" in the name didn't prompt reluctance, there's a couple of worrying signs regarding Bitcoiin2Gen.

As noted by Coindesk, the website for Bitcoiin2Gen lists no details about who's actually behind the cryptocurrency. Its domain was originally registered in 2015 in Panama, but changed hands around Jan. 8.

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Despite the name, Bitcoiin2Gen is claimed to be based on Ethereum's blockchain.

As per Seagal's endorsement, it's offering an affiliate program for an Initial Coin Offering that just so happens to be accompanied with a pyramid chart.

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Then there's its white paper, which is scant on any detail on what it actually does, aside from promising investors high returns.

Perhaps the best part of the whole thing is the press release that accompanies Seagal's ambassador announcement:

As a Buddhist, Zen teacher, and healer, Steven lives by the principles that the development of the physical self is essential to protect the spiritual man. He believes that what he does in his life is about leading people into contemplation to wake them up and enlighten them in some manner. These are precisely the objectives of the Bitcoiin2Gen to empower the community by providing a decentralized P2P payment system with its own wallet, mining ecosystem and robust blockchain platform without the need of any third party.

Suitably, there was plenty of chatter about Seagal's latest endeavour.

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It's worth noting that the Securities and Exchanges Commission has warned about celebrity endorsed cryptocurrencies and ICOs, as per a statement in November.

"Celebrities and others are using social media networks to encourage the public to purchase stocks and other investments," it reads.

"These endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement

"Celebrities who endorse an investment often do not have sufficient expertise to ensure that the investment is appropriate and in compliance with federal securities laws. Conduct research before making investments, including in ICOs."

Not that you needed be told about investing carefully, but alas.