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Cryptocurrency reviews available for purchase, degrade industry integrity

There is nothing wrong with a little positive publicity, unless that advertising is not false. A report of Reuters stresses that companies have the opportunity to purchase cryptocurrency reviews in order to promote their products. John McAfee also offered to promote a project at a price. This seriously undermines the integrity of the entire cryptocurrency industry and is probably why so many initial coin offerings (ICOs) have failed this year.

According to the report, "The self-proclaimed personalities of social media charge thousands of dollars for video reviews, the search houses accept payments in the cryptocurrencies they are analyzing," the rating experts "will classify anything positively, at a price".

The release of the media indicated that the practice is widespread and "common". He underlined how a Ukrainian startup, Hacken, was trying to promote his currency in 2017, finally turning to about 200 "social media personalities" of cryptocurrency to help them. Hacken gave $ 7,500 to Christopher Greene, a guest of Alternative Media Television on YouTube, to review his currency. At one point in his promotional video, he called Hacken a "great market opportunity" with "potential returns of 1,000 times".

Four days after the release of the video, Hacken's currency price increased by 14%, according to a tweet published by Greene. He also produced more than a few buyers. One, a yoga instructor in Canada, replied to the tweet, saying, "That Hacken video was a great man! They made me buy a couple of hundred."

Now, however, the price is not so right. It fell by over 75% and now stands at $ 0.36. Hacken's CEO, Dmytro Budorin, admitted that the practice of paying for reviews is not ethical. He added that reviews "should be made with (a) sponsored tags or only for projects that (the) reviewer personally supports".

The example is a good reason why ICOs are so approximate. In appearance, they may seem legitimate and may also have many positive public opinions. However, there is no way of knowing if these opinions are real or bought. Chances are good that the reviews found are not accurate project evaluations. Given that over 75% of ICOs have failed in the last year, it would be wise to consider alternative investment vehicles and completely avoid questionable practice.

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