The power of the celebrity endorsement was on full display Wednesday, when John McAfee’s new tattoo triggered a sudden change in the fortunes of one particular cryptocurrency.
That coin was Skycoin (SKY), and when McAfee revealed the tattoo to his +800,000 twitter followers, the coin price took a sudden 12% leap upwards within a matter of minutes.
McAfee Gets Skycoin Ink
Even for a man who is often accused shilling for dodgy crypto projects, turning himself into a walking billboard may seem a bit much. Yet, according to McAfee, his commitment to Skycoin is a no-brainer. He said:
“I got a Skycoin tattoo today. My tech folks will stitch a two minute video together that should capture the essence of the experience. For now, this short clip should summarize. Why Skycoin? If you have to ask, you’ve been living in a fucking closet.”
Given Skycoin’s market cap of $29 million, and a ranking down in the low 160s of market cap rankings, living in a closet may not be the only reason you haven’t heard about Skycoin.
The project encompasses an entire crypto and blockchain ecosystem, and comes with its own unique consensus algorithm, its own specialized node-hosting equipment (Skyminer), and (perhaps a sign of McAfee’s influence) its own hardware wallet. According to Skycoin’s landing page:
“The Skycoin Platform is the most advanced blockchain platform in the world. Developed by early contributors to both Bitcoin and Ethereum, Skycoin’s platform is completely secure, infinitely scalable, and ISP independent. Backed by bandwidth, storage, and computational power Skycoin is built to fulfill Satoshi’s original vision.”
While this may seem a harmless story from the weird and wonderful world of crypto twitter, it should be noted that McAfee has a history of taking payments to promote coins. For all anyone knows at this point, the Skycoin tattoo could be bought and paid for.
Skycoin Price Responds
Skycoin began to pump moments after McAfee’s video was tweeted out, and within the space of just over an hour, SKY trade volumes doubled from $600,000 to $1.2 million.
In the same time the coin price climbed from $2.72, up to the $3.05 recorded on Binance at around 20:00 UTC. That’s a 12% spike in just over an hour, and given the rapidity of the coin’s climb, this article could be outdated by the time it hits publication.
Binance processed over 80% of Wednesday’s SKY trades, with 75% coming from the SKY/BTC pair alone. Besides a handful of small token exchanges, Binance is the only exchange of note which handles SKY trades.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.