Boxing champ Floyd Mayweather faces controversy over endorsing a dubious cryptocurrency scheme, raising concerns of another “pump and dump” scam.
In cryptocurrency, Floyd, the unbeaten boxing champion, appears to be up against a different kind of knockout. ZachXBT, a blockchain investigator, has been charged with several charges, accusing Floyd of endorsing yet another dubious token scheme.
Pump and Dump Doubts
This follows a run of contentious incidents. Mayweather’s failure to declare funds to support unregistered cryptocurrency ventures has landed him in legal hot water and led to settlements.
Critics claim these campaigns smell like “pump and dump” scams, in which celebrities increase prices to cash in on their fame and leave supporters with worthless digital bags.
What has become of Mayweather lately? The token “FLOYD.” Following his social media hype, Mayweather suddenly removed his promotional posts, raising concerns about the possibility of another rug pull, in which investors’ money disappears and the tokens become worthless.
Mayweather is shadowed by controversy.
Mayweather has engaged in cryptocurrency controversies before. After initiatives like EthereumMax and Bored Bunny NFTs failed, investors who followed his advice are said to have lost a lot of money.
2024 will be a year of cautious optimism. Prominent analysts anticipate a sustained expansion in domains such as GameFi (NFT-based gaming) and NFT applications in the metaverse economy.
Big businesses are paying attention, which could lead to more acceptance and stability. But there are still difficulties. Scams such as the one involving Mayweather raise concerns about the lack of transparent laws in the industry and emphasize the importance of investor prudence. Technical challenges like scalability and interoperability must also be overcome for widespread adoption of the metaverse.
Trouble for the Crypto Hype Man
Mayweather’s reputation in cryptocurrency continues to be targeted as he moves from throwing punches in the ring to dodging a right hook from the Securities and Exchange Commission (SEC). The SEC claimed in 2022 that Mayweather had concealed funds he had received for endorsing Initial Coin Offerings (ICOs), which are high-risk investments.
Mayweather used his social media presence to get followers to purchase digital tokens before they vanished, much like a flamboyant pre-fight hype guy. He had a financial setback 2018 when he was fined over $600,000 for making similar mistakes in ICO advertising.
It appears like Mayweather may be up against a different kind of opponent, one in which the regulators’ and the disgruntled fans’ jabs will be too strong for his blows to have much effect. Investors should take note of this clear message: in the uncharted territory of cryptocurrencies, don’t let celebrity endorsements fool you. Before investing, always do your research, since surprises might happen in the cryptocurrency world.
