Many dubious trends can be associated with cryptocurrency. The paid promotion associated with specific projects has raised numerous questions. Now it seems that most of the self-professed encryption experts will gladly offer paid positive reviews. This is a worrying situation, as this "paid shilling" distorts information for investors.
Cryptocurrency shilling for money
The cryptocurrency industry allows many new business models to thrive. In most cases, these jobs are perfectly legitimate. A new trend identified by Reuters it is of particular concern, however. Companies can effectively hire self-proclaimed "experts" to write positive reviews about their cryptographic activities. This is usually done in exchange for a financial payment. It is not a unique business model for cryptocurrency, although it may have important consequences.
Any influencer in the cryptocurrency sector can be a valuable resource for new projects. As such, they often look for people for "shilling" purposes. This model revolves around the fact that people intentionally promote a currency or an asset in exchange for money. Often it does not matter if the project is legitimate, as long as the money is paid accordingly. These are the results of Reuters in a recent special report.
A lot of money can be earned or lost in the cryptocurrency sector. Any promotional effort that promises "greater potential returns" raises many suspicions. Most of the influencers involved in shilling do not even reveal the financial relationship with the project they are promoting. As a result, novice investors are often led to invest funds in a project that may not have long-term plans.
Paid appointments raise questions
Several important aspects must be highlighted in this regard. First, there are those willing to do anything for money in the cryptocurrency sector. While everyone needs to make money, potentially fooling investors into spending money is never a recommended option. Above all, not with so many governments controlling companies and their associates in this sector.
Secondly, companies pay anyone to commit themselves to the shilling. Projects worthy of note should never use solutions like these. If there is a work project and a long-term roadmap, success will materialize on its own. Using cheap tricks will damage these companies more than anything else. Furthermore, it makes the cryptocurrencies even more suspicious to the general public.
Assuming that this trend is genuine, there will be further repression by government agencies. The paid promotion of new projects has already caused problems in the past. Centra is a famous example in this sense. Floyd Mayweather Jr. promoted this project which eventually turned out to be a scam. While it has revealed paid promotion, celebrity endorsements are no longer allowed. The same can be true for the paid shilling if this tendency gets out of hand.
What do you think of the paid crypto shilling? Is there ever a legitimate reason for this? Let us know in the comments below.
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