John McAfee, prominent figure in the crypto space in his recent tweet seemed to be rattled by the threat from the US Securities and Exchange.
Due to SEC threats, I am no longer working with ICOs nor am I recommending them, and those doing ICOs can all look forward to arrest. It is unjust but it is reality. I am writing an article on an equivalent alternative to ICOs which the SEC cannot touch. Please have Patience.
— John McAfee (@officialmcafee) June 19, 2018
In response to this threat, McAfee says he will no longer support any ICOs. However, this indicates an immediate halt of “McAfee effect”, which was well known in the market for the magic it creates.
One such good example to justify coining of “McAfee effect” is its bullish impact on privacy coins on December 13th last year. In the tweet, he recommended three privacy coins inclusive of Monero (XMR), Zcash (ZEC), and Verge (XVG), which were trading on $237, $300 and $0.007 respectively. Verge being the cheapest of the recommended coin, received an unfair support achieving 614% rise in price resulting in $0.05 in the following 7 days.
Since then McAfee experienced rising popularity with his suggestions to 828,000 strong tweeter followers. His commendation on Docademic currency led to 26% rise in price
But there are other sources which say he was paid $105,000 to promote a coin in March. Whereas last week SEC announces bitcoin and Ethereum not to be deemed under any securities, but it drags ICOs under huge scrutiny since it considers ICO as securities.
This announcement from SEC, along with increasing number of ICO scam has led to uncertainty in the advice of paid promoters, who moreover, can act as unregistered brokers.
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