Boxing champ Floyd Mayweather has caught the cryptocurrency bug.
On Thursday, the undefeated world champion took to Instagram to promote an initial coin offering by Stox, a blockchain prediction company. The ICO will take place on August 2.
According to Mayweather’s Instagram post, the boxer thinks he’s going to make a lot of money from the capital raise. Here’s a tweet of the post:
Initial coin offering participants invest money and receive digital “tokens” in return. Thus far, ICOs have been largely unregulated, with some crowdfunding events raising hundreds of millions of dollars. In total, ICOs have raised $US1.37 billion, according to Lex Sokolin, a partner at Autonomous NEXT, a fintech analytics firm.
On Tuesday, the SEC said on Tuesday that initial coin offerings (ICOs), in some cases, can be considered securities; and as such will be required to subscribe to the necessary regulations.
Mayweather might need that extra cash from the ICO.
According to an ESPN report, much of Mayweather’s wealth is tied up in assets and not liquid. This prevented him from being able to pay back a tax liability of $US22.2 million to the IRS.
“Although the taxpayer has substantial assets, those assets are restricted and primarily illiquid,” Darren Rovell of ESPN said in a recent article, citing Law360. “The taxpayer has a significant liquidity event scheduled in about 60 days from which he intends to pay the balance of the 2015 tax liability due and outstanding.”