Celebrities not the best to follow when it comes to cyber currencies

Lydian Coin, yet another new cyber currency hyped by Miami-based start-up Gravity4, raised $10 million in an ICO recently, and some of the promotional push behind it may have been generated by famous airhead and celebrity socialite Paris Hilton, who used Twitter to briefly promote the ICO before withdrawing the tweet.

The withdrawal may or may not have been prompted by a warning from the Securities and Exchange Commission titled “Potentially Unlawful Promotion of Initial Coin Offerings by Celebrities,” in which the regulator cautions:

“Celebrities and others are using social media networks to encourage the public to purchase stocks and other investments. These endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement.

“Never make an investment decision based solely on a celebrity endorsement, or other information you receive through social media. It is never a good idea to make an investment decision just because someone famous says a product or service is a good investment.”

The warning is timely, with celebrities like movie actor Jamie Fox and boxer Floyd Merryweather reportedly punting cyber currency opportunities