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Despite 2018 being a rough one in terms of its impact on the crypto market, it hasn’t seemed to affect the businesses of using sponsored cryptocurrency reviews, Bitcoin.com reports.
Ukranian startup Hacken partnered with social media influencers to promote their ICOs earlier this year. According to Hacken’s CEO, Dmytro Budorin, the company launched an extensive promotional campaign that used social media to reach mainstream investors tht made them $3 million last year.
Hacken paid $7,500 to Christopher Greene, an Alternative Media Television (AMT) host for his review of an ICO to his followers. Greene was allegedly chosen out of a list of 200 prominent crypto social media icons. He made a 25-minute video in which he stated that Hacken was a “huge market opportunity” that had the potential of “1,000x returns.” Additionally, Greene doesn’t explicitly state that he received compensation for his review, aside from a disclaimer on his website that reads he “may have received compensation for products and services.”
Head of analysis at The Block, Larry Cermak expressed concern over paid reviews, stating, “The main reason why so many inexperienced individuals invest in bad crypto projects is because they listen to advice from a so-called expert.” Many new crypto investors “believe they can take this advice at face value even though it is often fraudulent, intentionally misleading or conflicted.”