Rapper The Game is looking at a $12 million court judgment. The decision involves the rapper’s role in Paragon Coin Inc. Four years ago, the crypto provider allegedly operated in unregistered initial coin offerings. And the Game, having endorsed the company in 2017, is legally viewed as a “statutory seller” and member of the company’s team.
The Cannabis Crypto Market
Legalized operators in the cannabis industry cannot use banks. These federally insured institutions are bound by government legislation to not engage in any cannabis-related transactions.
To counter the obstacle, the engineering of virtual currenciesdesigned specifically for marijuana-specific transactions came to fruition. To name a few, there’s PotCoin, DopeCoin, CannabisCoin, CannaCoin, and HempCon. The bitcoins filled a hole that the industry needed.
Cryptocurrency simplified the industry for many. Companies could buy their supplies and consumers could purchase their weed.
Crypto has, of course, changed the way business does business. Bitcoin has created instant millionaires. It’s led to many investors, including novices who have no experience in investing, diving into the market to find their pot of gold.
But as with any venture that promises wealth, the consumer’s need for quick cash has drawn out scammers. Entities that promise easy ROI. Over the years, these falsified companies have copped over $4.5 billion from aspiring entrepreneurs. That includes Bitconnect ($3.45 billion), Pincoin ($870 million), and ACChain ($80 million).
Bitcoin is an extremely volatile market. But many still hope to duplicate the fortune of millionaires like Erik Finman who invested in bitcoin at age 12 or Glauber Contessoto, who bought dogecoin in February 2021 and was a millionaire a month later.
Paragon Drags The Game Into Its Swamp
In 2017, Paragon marketed its illegitimate PRG tokens. They raised $70 million. Flimflammed investors filed their complaint in 2018. The plaintiffs and the court wanted to include Game in the lawsuit as they felt he endorsed the company, specifically noting an Instagram post on the company’s account.
The accusation didn’t take right away. Initially, The Game was clear. But with an amended complaint, a federal court decided there was sufficient evidence to show Game acted on behalf of Paragon and for personal financial gain.
Instagram & Its Complications
Reports and studies link “The Gram” to anxiety, depression, and bullying. It creates fear over missing an important moment, forcing people to manage constant monitoring. A report from the Royal Society for Public Health said Instagram is a dangerous platform, greatly diminishing mental health.
Instagram has dramatically altered how we socialize. It has also left us vulnerable as it is an instant record of evidence of how we think and act. If you watch The Game’s video, he does appear to promote his partnership with Paragon. But none of that necessarily implies he’s aware of how the company operates, let alone that Paragon might be shady.
The lesson here is to take close account of how you present yourself on these social media platforms. The Game is looking at owing $12 million for 47 seconds of harmless promotion.
