Brazilian MMA fighter Vitor Belfort has become a poster boy for Lith Token, a new cryptocurrency that promises, in addition to offering earning opportunities for investors, to bring benefits to sustainable causes, including the development of new renewable energy sources and energy initiatives. education for indigenous peoples.
In a paid post on his Instagram profile, the fighter said he believes cryptocurrencies “have a purpose in helping us responsibly navigate our future in an impactful way” and that he is excited to partner with Lith Token. The request of UOL, two experts in cryptocurrencies analyzed the material released by Lith Token and explain if it is worth investing in this currency. See what they said below.
Crypto raised questions from experts
For Rodrigo Borges, specialist in cryptoactive and analyst of Ohmresearch, an independent analysis platform, the recommendation is not to invest, at least for the time being, or to invest a minimum amount, below 1% of the total equity available. “I would not invest at this time. I would need more study time to make a decision,” says the expert.
Borges studied the material available on the internet about cryptocurrency and classified what he read as “unclear, quite extensive and almost wordy”, with excessive use of words linked to initiatives sustainable, but without substantial explanations to demonstrate what great business the currency promotes.
“In the market, we have that maxim: if you don’t understand in five or 10 minutes of conversation, it gets complicated. I find it difficult to invest in what I don’t understand”, says Borges.
Experts do not recommend cryptocurrency
An executive from a company specializing in the cryptocurrency market, and who declined to be identified in the report, also discouraged investment in the currency, saying that there are many obscure points in the material released on the internet.
One is related to the team. The LinkedIn of one of the people responsible for the project, appointed as the architect of blockchain, is from a journalist who worked most of the time in the media area — which raises doubts about his technical attributes to lead an asset mining work based on this technology, which is quite complex, according to the executive.
In addition, there is no clarity about the company behind the launch of this coin, nor is there any mention of new data usage laws, such as LGPD (General Data Protection Law), of Brazil, and the GDPR (General Regulation on Data Protection) from Europe.
Even questions covering ESG (Environment, Social and Corporate Governance) awards, which talk about contributing to the development of renewable energy sources, have not proven to be fully credible, he says.
“I have several examples of projects (of cryptocurrencies) that claimed to have partnerships with large companies such as Microsoft, Amazon and SpaceX, but it wasn’t true,” says the executive.
The expert’s assessment is that the asset is “very high risk” and that the investor who tolerates this level of uncertainty may even risk it, “but make a small investment, because we balance this large risk with the size of the bet”, it says.
Sought to clarify the points raised by experts, Lith Token has not responded until the time of publication of this report.
Personalities such as Belfort do not guarantee suitability
Borges points out that even with the endorsement of a world famous personality, such as Vitor Belfort, there is no guarantee of suitability.
“We have seen more and more advertisements for unreliable cryptocurrencies with great personalities all over the world”, says Borges.
One of the most recent cases is that of American socialite Kim Kardashian, who posted a disclosure of a currency known as the ethereum max, which has no confirmed relationship with the famous etherum.
Lith Token’s publicity appears as the fighter returns to the spotlight. Belfort, now away from the Octagons, will fight, this Saturday (11), with the former American boxer Evander Holyfield.