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U.S. Rapper T.I. Sued for $5 Million After His Token Allegedly Fails

A U.S. Rapper, popularly known as T.I. is currently facing a lawsuit after his FLiK Token devalued tremendously and the project was abandoned. The plaintiffs are a group of 25 people who claim to have invested $1.3 million into the tokens in 2017, which as at today, has no real value. Accordingly, they want to be paid $5 million for damages.
The FLiK Token was promoted on social media by T.I and another celebrity, Ryan Felton. Also, the U.S actor, Kevin Hart had promoted the token on his twitter account. The plaintiffs claim that one of the tactics used to increase the token’s price was to give potential investors the impression that Kevin Hart was going to be the face of FLiK.
The Plaintiffs added that Felton had created a new company, claiming that they had acquired the coin which he later denied being affiliated to it. It was also alleged that both parties had manipulated the price of the token to create a sudden hike in price and as would be expected, the price dumped sooner than expected.
Additionally, it was said that Ryan Felton had created a fake online post posing as Dallas Mavericks owner, Mark Cuban, to drive up the price of the token. Whether these were all marketing strategies, they were successful ones that achieved its purpose but for a concise period given the trends in price.
Flick began trading in September 2017, and its price was around 21 cents before it experienced a significant hike in price in February 2018. After that, the coin devalued greatly thereby leaving its current holders with “now worthless securities called FLiK Tokens.”
According to the Investors, Felton had explained to them that the rapid devaluation of the token could also be attributed to the fact that T.I. had given some of the FLiK tokens to his family and friends who later sold large quantities of the coin on coinexchange.com.
This is usually the case for a pump and dump coin, and it is not uncommon to find celebrities actively promoting ICOs on their social accounts. The reason for this is that they can greatly influence the consumer’s decision in buying a particular Token.
There have been the likes of Floyd Mayweather, a U.S boxer, who supported an ICO known as Centra which was later charged for fraud by the U.S. securities watchdog SEC. In the same vein, Ghostface Killah, a U.S. rapper was also the co-founder of an ICO that hoped to raise about $30 million which was not attainable.

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