Former Australian Cricket captain, Michael Clarke, has landed himself in the somewhat piquant situation. That is because some of his fans were furious as to why he endorsed an initial coin offering (ICO) of Global Tech. The Brisbane-based digital coin exchange is planning to raise a maximum of $50 million through the ICO route. Apart from fans, a popular hedge fund manager has also issued a warning asking the ex-cricketer to avoid promoting the ICO.
Protecting Investors Interests
With the help of digital currency, crowdfunding could be a new form of the avenue. However, ASIC, the corporate regulator has expressed its concerns and introduced different steps to protect investors. The agency has also started to turn its focus towards deceptive conduct risks, as well as, misleading statements. The Australian Competition and Consumer Commission (ACCC) have been brought in to help the ICO issues. As a result of scrutiny, some of the planned ICOs have gone back to the drawing board.
Under the circumstances, Clarke’s endorsement of an ICO came to the fore. In his endorsement, he said that he was excited to have got involved with Global Tech. He indicated that he liked the company’s ambition and the drive thus driving him straight away from endorsing the ICO. He said he could not wait any longer to know about distributed ledger technology, businessinsider.com reported. Andrew Mclean and Marlon Donaire have established the company more than a year back.
The company’s trading platform, as well as, exchange integrates not only premium education but also a social platform apart from key industry updates. The company is confident that these would revolutionize the way the company invests and live. Its objective is to create, advance and modernize the sector. That will make it forward-thinking, transparent and more accessible. The company indicated that though there are some excellent crypto coin and blockchain firms, there are also several illegitimate enterprises and scams.
However, GobalTech indicated that this is one of the issues that it is keen to resolve. A company’s statement said, “Andrew and Marlon propose to bring legitimacy back to the industry with a community and education-based trading and exchange platform. With their revolutionary vision and entrepreneurial ethos, they spent months tracking down the right people to create the perfect team, and make their vision a reality.”
It is nothing new that celebrities are endorsing ICOs. There were others like actor Kevin Hart, Paris Hilton, Boxer Floyd Mayweather and DJ Khaled have participated in endorsing ICOs as they were lured by the offer of initial coinage. However, Clarke’s endorsement did not elicit the same kind of response that his batting used to get.
His tweet has met with more re-tweets with a big majority of them being negative. However, the most damaging comment came from John Hempton, founder of Bronte Capital, as he compared Clarke’s endorsements with that of the notorious ball tampering moment. Significantly, that controversy proved to be an end of captaincy innings for Steve Smith when he toured South Africa early this year. He viewed that Clarke has squandered his reputation by endorsing ICO.