Crowdfunding YouTube Celebrity Screws Fans

Here’s another way to get screwed via crowdfunding: A YouTube celebrity in Japan with over 2.2 million fans, Hikaru, sold “shares” in himself on a platform called Valu.

Fans paid cash for tokens on the Valu exchange called VA’s. The fans can trade the VA’s on the Valu exchange and the VA’s are exchangeable for Bitcoin (another valuable commodity?).

As his fans went crazy buying VA’s, the value of the VA’s soared to 0.09 Bitcoin or about $387 per VA.

Then, Hikaru and a buddy suddenly sold all of their VA’s cashing in for about $440,000 and tanking the value of the VA’s to about .0075 Bitcoin.

Fans were pissed and Hikaru’s gig may be over.

https://www.reuters.com/article/us-japan-exchange-people/a-celebrity-listing-crashes-japanese-exchanges-party-idUSKCN1BY10S

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, unfair and deceptive practice, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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