Looks like SEC is in the process of scaring celebrities from endorsing Initial Coin Offerings (ICOs). The latest target of the scare is John McAfee. McAfee was making headlines past month by declaring that there is a war on cryptocurrencies whether we know it or not.
He also has announced his willingness to run for Presidency in 2020 last week. However, despite making so many noises on so many fronts, he tweeted that he is not going to endorse any ICOs in the future.
He warned the people who are working on the ICOs that they should be ready to get arrested at any time. SEC i.e. Securities and Exchange Commission is the top financial regulator of the United States.
It have immense powers when it comes to regulation of financial markets and recently it is making some headway into the crypto regulation. The SEC’s announcement regarding the Ethereum’s status as not being a security has launched the crypto market after its recent downward spiral. SEC has demonstrated that it not only has the regulatory power. It also has the power to create positive perception in the crypto market.
McAfee’s tweet was very revealing. “Due to SEC threats, I am no longer working with ICOs nor am I recommending them, and those doing ICOs can all look forward to arrest. It is unjust but it is reality,” he wrote. McAfee was responding to a question by another person. The question was which crypto will be best to invest in given his expertise. He further commented “I am writing an article on an equivalent alternative to ICOs which the SEC cannot touch. Please have Patience.”
SEC has issued warnings to many celebrities on promoting fraud ICOs. The celebrity endorsement really works in the crypto sphere according to another SEC’s report. They also warned the celebrities to not violate other securities regulations such as disclosure requirement for paid endorsements.
McAfee was involved in ICO consultation and charged heavily when he endorsed any ICOs via his tweets. He charged 500,000 USD per tweet and 100,000 USD for every reply that he gave on twitter regarding ICOs.
His endorsements of an ICO which has plagiarized its whitepaper and web contents from another project landed him in the sights of SEC. The behavior was considered irresponsible at the very least and thus warning was made.