Pacquiao’s venture is the latest development in the world of cryptocurrency – a system of electronic money that is used for buying and selling online and without the need for a central bank.

In 2017, the price of bitcoin and its sister digital currencies exploded, but then crashed. It was one of the most remarkable financial bubbles in recent memory.

While the market has stabilised since that year, one positive outcome is that cryptocurrencies – and specifically the industry’s most famous brand, bitcoin, have entered the mainstream.

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When researching celebrities who have invested in bitcoin, or other cryptocurrencies, the question is not “who has invested?” but rather “who has NOT invested?”. Which is why STYLE took it to the next level:

We wanted to find celebrities who are deeply involved in cryptocurrency. Some have launched their own coins, one is involved in mining and a pair of twins have built a wildly successful exchange company.

At this point, we probably need to explain the difference between the terms bitcoin and cryptocurrency.

Think of the two words like squares versus rectangles: a square is a rectangle, but a rectangle is not a square. Bitcoin is a cryptocurrency, but cryptocurrency is not bitcoin. There are thousands of cryptocurrencies across the internet, but bitcoin is easily the most important and it drives the market.

Cryptocurrencies are tokens built on the blockchain – a technology that allows hyper-security and individualisation because it is built on a distributed ledger. This means that every transaction can be marked for later reference.

Idealists view tokenisation as a tool to eliminate fraud and empower the masses. For example, a token could be applied to a priceless piece of art and replicas could be teased out of the market because they are not accompanied with a token.

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The most radical evangelists view cryptocurrencies as a decentralised currency that could theoretically replace central banks; but that dream is either unrealistic or a long way away, depending on the person’s opinion.

It is in this context that the 2017 bubble is so important. It may have resulted in financial ruin for some people, but it also forced the public (and celebrities) to do their research and learn about the technology.

Check out the celebrities, including Pacquiao, who liked what they saw and have made serious investments in the cryptocurrency industry.

Manny Pacquiao – PAC Token

After defeating American boxer Keith Thurman in the ring to win the WBA Welterweight Super Championship in July, one would think Pacquiao would take some time off to recover. But he had different ideas.

The boxing star launched his PAC Token at his concert, “A Concert for Champions”, held at Manila’s Smart Araneta Coliseum.

Pacquiao’s PAC Token cryptocurrency will be used to buy (or sell) bespoke experiences for fans, according to Singapore’s Global Crypto Offering Exchange (GCOX), the company that has built the product.

GCOX has created a business model on launching celebrity-athlete tokens to help famous people interact with fans or motivate their followers to donate to certain charities.

The company is also working with former Liverpool and England soccer star Michael Owen and the Danish tennis champion Caroline Wozniacki.

Pacquiao’s PAC Token had been in the works for awhile – after being announced in March last year.

Akon – AKoin

AKoin, a product from global music icon Akon, is incredibly ambitious. If it works, it could legitimately make the world a better place.

When people proselytise the potential of cryptocurrencies, they often point to its ability to help vulnerable people break out of crippling realities such as corruption or hyperinflation. The American singer-songwriter and record producer Akon wants his token to do this in Africa.

Akon, who was born in Missouri and comes from Senegalese descent, wants to help people, “reach their potential”, according to Newsweek.

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The singer wants the coin to be a platform for entrepreneurs to build upon, and if the AKoin becomes widely adopted it can help create a currency that can be used across various African nations.

In the above interview, Akon discusses the difference between freedom and equality, and says that cryptocurrencies can be a tool to provide equal financial access to everyone – improving the continent’s equality.

For now, the coin is not yet launched, but it is certainly the most ambitious project on this list.

The Winklevoss Twins – Gemini (a cryptocurrency exchange)

Gemini is not a coin, but rather an exchange – a platform where people can buy and sell cryptocurrencies.

The American Winklevoss twins, Cameron and Tyler, came to global attention thanks to their portrayal in the film The Social Network, which focused on the founding of the social media website, Facebook, and the resulting lawsuits.

They launched the company in 2015 and can count themselves as two of the most successful cryptocurrency entrepreneurs in the world.

In an ironic plot twist, the Winklevoss twins said they are open to having Facebook’s cryptocurrency project, named Libra, listed on Gemini.

Years ago, the duo settled a lawsuit claiming that Mark Zuckerberg, CEO of Facebook stole their idea for the website. The settlement was valued at US$200 million in stocks and cash, according to The New York Times.

Gemini looks as if it will be around for the long haul and the exchange recently launched in Australia.

William Shatner – Solar Alliance (cryptocurrency mining)

One characteristic of bitcoin is that it has to be “mined” – a term that refers to computers verifying bitcoin transactions and then being the first to arrive at a given algorithmic proof of work. If a person is the first to solve this problem, they get rewarded with bitcoin.

A major problem with mining is that it is a big drain on energy resources.

Actor William Shatner wants to help solve this problem by being a spokesperson for the Canadian company called Solar Alliance.

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The firm is building solar panel-based mining rigs, according to the Chicago Tribune. The plan is to build a 14-acre (5.5-hectare) solar farm and lease the property to cryptocurrency miners.

It is fitting that the star of the futuristic Star Trek television and film series is finding himself intrigued by a futuristic technology.

Cautionary tales of Evander Holyfield, Floyd Mayweather Jnr and DJ Khaled

A significant reason cryptocurrencies have not taken off is that the industry is filled with immoral, and often illegal, scam companies. More than most industries, it is essential to do your homework when getting involved with a cryptocurrency company.

Unfortunately for American boxing legends Floyd Mayweather Jnr and Evander Holyfield – as well as rap star DJ Khaled – they all got their fingers burned because they backed the wrong company.

Holyfield endorsed a company called AriseBank while Mayweather and Khaled got involved in a company named Centra Tech.

According to the US Securities and Exchange Commission (SEC), Centra Tech raised US$32 million in an Initial Coin Offering (a term referring to the first time a coin launches on the public market and people can buy the product). The Centra Tech founders said the company could build a credit card to spend cryptocurrencies, but the SEC ruled they had made fraudulent claims.

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The mistake cost Khaled and Mayweather more than US$750,000 combined, according to technology website Gizmodo.

As for Holyfield, he unwittingly became the spokesperson of a company that allegedly committed fraud worth US$600 million, according to the SEC.

While cryptocurrencies and its underlying blockchain technology have a lot of supporters, the industry is rife with problems

The cases involving Holyfield, Mayweather and DJ Khaled highlight why it’s important to take care when making investments.

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