Ghost Face Killah’s Firm Plans ICO, but Some Issues Raise Questions About its Readiness
A planned ICO connected to a popular celebrity has flaws, starting with its white paper, which is considerably unprofessional. This ICO serves as an example of investors not getting swept up in a perceived opportunity because it’s associated with a celebrity. Do your homework, and use your best judgement.
Anything that includes the name Ghost Face Killah is bound to catch people’s attention. In the world of crypto ICOs, it stands out greatly.
We’re seeing that now as this is the name of a member of Wu-Tang Clan, a popular rap group. This member is reportedly a co-founder of an outlet planning an ICO for November. Outside of that interesting, to say the least, name, this planned ICO has all the makings of a traditional ICO.
However, a look at its white paper shows some of the troubling signs that investors should take into account when considering an ICO opportunity. Celebrity figures and the hype that goes along with the moves they make can cloud one’s judgement. This ICO has all the bells and whistles of the ICOs we’ve seen to date, but a closer looks shows some things that are off putting.
All about CREAM
Specifically, a financial outlet called Cream Capital is seeking to raise $30 million. It came up with quite a catchy name for its digital currency, which is CREAM, standing for Crypto Rules Everything Around Me. One of Cream Capital’s executives corresponded with CNBC today via an email to explain the company’s crypto endeavor.
Brett Westbrook, Cream Capital chief executive, said the firm had been granted a trademark by the U.S. Patent and Trademark Office) for the name.
Westbrook also addressed the celebrity endorsement of cryptos, which is helping to garner more attention for the space among the mainstream. He acknowledged this being a “double-edged sword.” Celebrities’ influence, coupled with some of them being ignorant about nuances of the complicated world of cryptos, could lead to them promoting fraudulent ICOs.
To CNBC, Westbrook wrote:
"I personally think that anything that puts cryptocurrencies in front of the eyes of everyday people is a great thing for the markets overall. On the other hand, I believe it's important that celebrities know the importance of their endorsements and understand the underlying principles of blockchain technology. The last thing we need is a household name promoting what turns out to be a scam ICO."
Cream wants to rise to the top
Cream wants to connect companies in need of capital with lenders and others. Cream boasts being a “'a strategic, creative cryptocurrency project with [a] strong team behind [it] which will make CREAM the world's most desirable coin.”
It wants to use the proceeds to develop a startup foundation called CREAMLINE. According to CNBC, its tokens will be integrated into debit cards that can be used in any store or other vendor that accepts card payments.
Cream says it has base of multiple networks, social media and systems from third parties, to be used for self-promotion, and end providing services for whoever is in need.
As most know, the white paper is one of the most important precursors to the ICO. Not only does it detail how proceeds from the ICO will be used, but it is also the chance for the company to make a great, professional first impression.
Cream missed the bar.
Consider some of these statements from its official white paper on its site.
“CREAM Crowdsale and Cream coin project as a whole, will focus on helping, promoting and funding crypto startups, inovations and entrepreneurs idea…”
“Beginning of CREAM is by deffining Cream protocol, a state that deffines correct agreement between the nodes in the network, creating X11 algoritam. With this algoritam, our developers goal is achived in the most possible way to be applied between the nodes, creating most secure valid transactions.”
It’s off-putting and of concern that this company seeks to raise millions of dollars, yet did not take the time to put its white paper through a spell checker, or make sure it was free of grammar mistakes.
This in no way implies the deal is fraudulent. However, it does signal that perhaps more time is needed for this company to develop a presentable, and credible representation of its project.
Let this be just one of the measures you use in determining if it is worth giving up your hard earned dollars. It’s not a good sign that spelling and grammar errors weren’t addressed. What does that say about the product and offering being peddled?
Celebrities have increasingly stepped up their endorsements of cryptos. That’s great, but do your own research, including pouring over documents like the white paper. Make your decision based on your own best judgement, not just the celebrity hype. In fact, let this be your rule of thumb for ALL ICOs.