The U.S. Securities and Exchange Commission (SEC) revoked the registration of ParagonCoin, the crypto company promoted by rapper The Game.
The SEC deemed that the firm was in default and had violated the Securities Exchange Act of 1934. Hence, regulators revoked the registration of ParagonCoin.
ParagonCoin claimed to offer blockchain solutions for the legal cannabis industry. As of writing, the official website shows that they are filing for bankruptcy.
After failing to file the required periodic reports, ParagonCoin also failed to prove they were not in default. Hence, the SEC notice reads, “We now find Respondent to be in default, deem the allegations of the order instituting proceedings (OIP) to be true, and revoke the registrations of its securities.”
The American rapper Jayceon Terrell Taylor, known by his stage name “The Game,” promoted the Initial Coin Offering (ICO) of the ParagonCoin in 2017. The company raised $12 million through its ICO and later had to classify the tokens as securities due to an SEC settlement.
The rapper also promoted EtherliteOrg with a tweet saying, “If you missed bitcoin… don’t be late on this !!!”
Celebrities’ Love of Crypto
On the other hand, rappers Eminem and Snoop Dogg released a music video referencing the Bored Ape Yacht Club (BAYC) in June 2022. Eminem also owned a BAYC and had the NFT as his display picture on Twitter.
He purchased the NFT for 123.45 ETH ($452,000 at the time), but the floor price for BAYC as of writing is 68.69 ETH ($96,646). Hence, Eminem’s NFT has depreciated by almost 78% in fiat value.
Similarly, BeInCrypto reported that Justin Bieber’s BAYC NFT was down by 94% in November 2022.
Celebrities have actively participated in the Web3 ecosystem by promoting a project or raising funds for their own project or NFT collection.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.