Many are viewing Floyd Mayweather’s recent venture into cryptocurrency as a fail of sorts, but could it be a signal that something bigger is happening? Could this signal the end of the cryptocurrency bubble?
The ICO or initial coin offering from Hubii, which is an online publishing start-up has done less than expected, despite their high-profile backing from Floyd Mayweather.
The hopes for Hubii is that they would raise $50 million in a two-week funding period, but by the end of that time they had only managed to secure $7 million in funding.
That number is not only way less than they expected, but it makes the company barely able to survive.
The company wrote in a statement that they “will be setting a minimum target of $5 million.” That minimum would hopefully “still allow the team to develop some minimum viable products, but it is likely that extra funding would be needed, by more conventional venture capital routes.”
An ICO is the digital currency equivalent of an IPO with the majority of them doing extremely well in recent times. This is similar to the dot-com bubble. It is a way of raising funding for companies without actually raising dollars directly. Those in charge can either exchange the currency for real money, or the investors can choose to get paid in the currency of choice.
The endorsement from Floyd Mayweather came about on twitter just prior to the record-viewing pay-per-view fight. Mayweather tweeted that “You can call me Floyd Crypto Maywether from now on. #Hubiinetwork #ICOstartstomorrow! Smart contracts for sports?”
Although Hubii did decline to comment on the amount they paid for the advertisement, it is clear that it is exactly that.
With a cryptocurrency having a backing like Mayweather, fall short of expectations, could this potentially signal the end of the bubble?