Floyd Mayweather, the undefeated boxing champion, appears to be facing a different kind of knockout in the cryptocurrency arena. Blockchain researcher ZachXBT has received a barrage of accusations, criticizing Mayweather for promoting another suspicious token project.
Suspected pump and dump
This comes after a series of controversies. Mayweather has been embroiled in lawsuits and settlements for failing to disclose payments to promote unregistered cryptocurrency companies.
These promotions, according to critics, reek of “pump and dump” schemes, where celebrities artificially inflate prices before cashing out, leaving fans with worthless digital bags.
Mayweather's latest offensive? The “FLOYD” tab. After promoting it on social media, Mayweather abruptly deleted his promotional posts, raising fears of another possible attraction: a scenario in which developers disappear with investors' funds, leaving their tokens worthless.
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Does Floyd deserve a 13th chance?
After making tens of millions from Mayweverse, ethereum Max, Bored Bunny, Real Floyd nft, Moonshot, 2018 ICO and more. https://t.co/JaNLdhsPqR pic.twitter.com/DDCBUoFBrj
– ZachXBT (@zachxbt) twitter.com/zachxbt/status/1797100646081994822?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 2, 2024
Controversy casts a shadow on Mayweather
This isn't Mayweather's first dance with cryptocurrency controversy. Investors who followed his lead in companies like EthereumMax and Bored Bunny nft reportedly suffered significant losses after these projects failed.
2024 is shaping up to be a year of cautious optimism. Experts predict continued growth, particularly in areas such as GameFi (nft gaming) and the use of nfts in the metaverse economy.
Large companies are taking notice, which could bring stability and broader adoption. However, challenges remain. The industry still lacks clear regulations and scams like the one suspected with Mayweather highlight the need for caution among investors. Technical obstacles such as scalability and interoperability also need to be addressed for widespread adoption of the metaverse.
crypto Hype Man in Trouble
The blows keep coming to Mayweather's crypto reputation, from taking blows in the ring to facing a different kind of blow: a right hook from the Securities and Exchange Commission (SEC). In 2022, the SEC alleged that Mayweather failed to disclose payments he received for promoting risky investments called Initial Coin Offerings (ICOs).
As a pre-fight flashy man, Mayweather reportedly used his social media platform to urge fans to purchase digital tokens before they supposedly disappeared. In 2018, he took a financial hit after being fined more than $600,000 for similar errors in ICO promotion.
It looks like Mayweather might be facing a different kind of fight: one in which his punches have little power against the punches of regulators and disappointed fans. The message to investors is clear: don't be hypnotized by celebrity endorsements in the wild west of cryptocurrencies. Always do your own research before investing, because in the cryptocurrency circle, successes can come from unexpected corners.
Featured image from ESPN, chart from TradingView
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