Failed Token Lands Rapper T.I In Court
Celebrities are increasingly taking part in the creation and promotion of tokens. A number have not managed to live up to their projected goals.
Investors Sue Rapper T.I For $5 million
Hip Hop artist T.I is facing a $5 million lawsuit following the failure of his FLiK token. The American rapper is being sued by a group of investors who took part in the token. The lawsuit was first reported by The Blast.
According to court records, about 25 people claim that they collectively pumped $1.3 million into the token, that has since been dubbed worthless. The token was supported by T.I alongside Ryan Felton, his business partner. The group alleges that the asset creators advertised it on social media platforms to create the picture of a profitable liquid venture.
They now accuse T.I and Felton of defrauding them out of their investment which was used to raise the token’s market value. Once the value declined, the two proprietors are accused of dumping it and then going silent. The court papers further state that Felton went ahead to set up a new firm that allegedly acquired FLik.
The plaintiffs now want the rapper to compensate them with $5 million in damages. In the wake of the suit, T.I’s lawyer has not issued a response by press time.
The token was revealed last year and received celebrity support. Comedian Kevin Hart through his Twitter account promoted the token. According to TMZ, Mark Cuban was also involved in the promotion. Data from CoinMarketCap shows that the token peaked in October last year with a $0.21 value. By press time, the token was valued at a paltry $0.001.
Since the inception of cryptocurrencies, celebrities have been involved in a number of promotional activities. However, the promotion usually ends up badly. Rapper Ghostface Killah from Wu-tang Clan played a role in the co-founding of an ICO with the goal of raising about $30 million. Unfortunately, it was subsequently suspended.
Boxing champion Floyd Mayweather also participated in an ICO. He even called himself Floyd "Crypto" Mayweather. a play on his nickname "Money". Come 2018, the Centra coin which he promoted was sanctioned by the SEC over fraud.
Actor Johnny Depp also entered a partnership with social entertainment service TaTaTu. The partnership which was signed last month will see the two parties come up with movies and digital products.