The digital currency boom has resulted in countless celebrities endorsing new initial coin offerings, or ICOs, a process in which capital is raised to fund and promote a cryptocurrency venture.
Music fans who will buy Bjork's album "Utopia" will receive 100 free Audiocoins, a two-year-old cryptocurrency that's worth a face value just shy of 20 cents, The Verge reported. The cryptocurrency can then be kept by users in an e-wallet or traded for other digital currencies, including bitcoin.
Cryptocelebrities: Bjork is the latest celebrity to enter the initial coin offering craze. With many celebrities promoting cryptocurrencies on their social media profiles, investors may not fully understand what they're buying into. For example, multimillionaire boxer Floyd Mayweather posted a picture of himself on Instagram with a caption: "I'm gonna make a $hit t$n of money on the Stox.com ICO."
The SEC On IG: The Securities and Exchange Commission felt it prudent to issue a warning to the public. The regulatory body cautioned investors that celebrities who endorse an investment often lack the "sufficient expertise to ensure that the investment is appropriate and in compliance with federal securities laws."
As is always the case, investors shouldn't base a decision "solely on an endorsement by a promoter or other individual," the SEC also said.
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