The newest accessories for celebrities are no longer physical. Celebrities have begun to sponsor cryptocurrencies, and for good reason. There is currently so much money in the industry of cryptocurrency, that companies will pay ridiculous amounts for celebrity endorsements. These companies need the hype so that their initial coin offerings or ICOs will have high returns. Although this method of fundraising has had a solid amount of criticism, it seems like it may be here to stay.
Some celebrities are not even paid to endorse the companies but rather have high hopes that their shares of the coin will go up with their endorsement. As of last week, Ghostface Killah from the popular hip-hop group, Wu-Tang Klan, became one of the first to announce the co-founding of a cryptocurrency firm. The firm, known as Cream Capital, is currently seeking $30 million in funding to begin building an ATM system that works with cryptocurrency. This way consumers can buy and sell cryptocurrency with ease, and get out physical currency that has a tangible worth.
One of the difficult issues with cryptocurrency is its liquidity. Without a way to actually sell the currency, it essentially becomes worthless. With a system like an ATM working to bridge the cap between the cryptocurrencies and a useable one, that would make the issue of liquidity almost non-existent.
Ghostface, who’s real name is Dennis Coles stated that he “serves as a vessel to increase brand awareness surrounding Cream Capital and cryptocurrencies.” This helps to give a legitimate background to a company in a market where legitimacy is key.
The market on cryptocurrency has been one with a slightly sketchy past. From using it to enhance the blackmarket, and criminal acts, the hopes are now that cryptocurrency can find some legitimization in the marketplace.