US rapper, The Game, is hitting the headlines for the wrong reasons. Apparently, fame and scandals are inseparable. Born Jayceon Terrell Taylor, The Game, as he is popularly called, has just got his fingers burned for promoting a fake cryptocurrency company that claims it is revolutionizing the recreational cannabis industry with its blockchain-based solutions.
The Business Model
Just like other ICOs, the promoters of ParagonCoin (PRG), the embattled cryptocurrency, are making investors lots of promises. One promise is offering a token that will reshape the California cannabis industry. By developing a robust platform that encompasses ravishingly stunning GUI’s, innovative database architecture and smart contracts, ParagoChain, the name of the platform, can effectively track the supply chain of recreational cannabis on the market from the producer to the final consumer. Because it is capable of tracking the end-to-end supply chain, Paragon raises hope that it will take the industry to its next frontier.
The cannabis-focused cryptocurrency company is offering a wide range of products, including ParagonSpace. ParagonSpace helps recreational cannabis companies to settle their office space challenges. With ParagonSpace, there will be a community of businesses and entrepreneurs. This will thus create an engaging platform for them to “network, build and collaborate.”
The Game’s Involvement
Via his Twitter handle @thegame, The Game kept his followers engaged with his activities in the company. He sometimes shared videos and pictures of himself and CEO of Paragon Jessica Versteeg in an effort to encourage his followers involvement. The Game often updated his handle to keep his followers in the know about his activities with the company.
The investors later realized that all the promises made by the company were a ruse. To add insult to injury, their findings show that Paragon used the money, realized through ParagonCoin ICO, to acquire real estate instead of revolutionizing the California recreational cannabis industry. As a result, they became furious and decided to seek legal redress for fraud. In the lawsuit, the plaintiffs urged the court to indict Paragon and its board for defrauding their investors. Although they didn’t specify the amount they want, their lawsuit is nonetheless asking the court to compel Paragon to refund investors’ money.
But Why Is The Rapper Getting Sued?
Well, The Game is joining the long list of lawbreakers, because he not only actively promoted the token; he was also on the member list of the Paragon advisory board. The Game had earlier lost a $20 million lawsuit over sexual assaults involving his show contestants.