28 December 2018 22:21
The company is receiving criticism for deceptive promotions made through its community advocate program.
The Australian financial review Thursday 27 December it was reported that the electricity trading company based on the blockchain Power Ledger was criticized for rewarding the "spruikers" (Australian slang for individuals who exaggerate in selling products). Reportedly, these individuals have "made misleading or exaggerated claims" online on the company's cryptocurrency, POWR.
As part of the Community Advocate program of the company, community members are paid to promote Power Ledger on social media, including answering questions, correcting incorrect information, reporting scams, initiating meaningful discussions about company projects and provide constructive feedback. Power Ledger has selected a "sample" of community advocates every month from the start of the program in July.
However, some of the lawyers have apparently become thieves and engaged in sprueking activities, which is regulated in Australia. The Australian Securities and Investments Commission (ASIC) published a information sheet providing guidelines to entities participating in initial coin offerings (ICOs) or cryptographic activities, such as cryptocurrency promotion. The ASIC noted: "Care must be taken to ensure promotional communications on any crypto-currency or ICO do not deceive or deceive potential consumers and do not contain false information ".
Furthermore, ASIC has stated that spruikers as Power Ledger advocates "should reveal that they are rewarded by the company". Although the Power Ledger Community Advocate program is publicly known, it is not clear whether the participants in the initiative should disclose their affiliation with the company. "We are very focused on dissemination in this sector," added Commissioner ASIC John Price.
Although the concerns of the ASIC are understandable, Power Ledger claims that it can not necessarily control how its supporters promote POWR. Jemma Green, president and co-founder of Power Ledger, explained:
"The means they were doing was out of our control and we made it clear that our main supporters who believed in the project and the future of renewable energy were the main audience of this program."
In fact, the intent of the company with the program was to create a basic support for the sale of POWR tokens, not to deceive or exaggerate its cryptocurrency offer.
Ethical advertising is a recurring theme within the cryptospace. In November, for example, the US Securities e Exchange Commission the boxer charged with Floyd Mayweather and the record producer DJ Khaled with "not having revealed the payments received to promote ICO". The celebrities have been hit with heavy penalties for their actions.
Dani Putney is a full-time writer for ETHNews. He holds a degree in English at the University of Nevada, in Reno, where he also studied journalism and queer theory. In his spare time, he writes poetry, plays the piano and dances on fictional characters. He lives with his partner, three dogs and two cats in the middle of nowhere, Nevada.
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