>>> WELCOME BACK TO "SQUAWK BOX. SCORE ENOUGH FOLLOWERS IS A MAJOR MONEY OPPORTUNITY FOR INFLUENCERS IN THE CRYPTO SPACE. WE HAVE SEEN IT. THE CNBC INVESTIGATION FINDS SOME ONLINE PERSONALITIES GET PAID THOUSANDS SOME SAY THE INFLUENCERS ARE PROMOTING FRAUDS THE AMATEUR INVESTORS WHO POUR SAVINGS INTO THE VENTURE IS PAYING THE PRICE EAMON JAVERS HAS MORE. >> Reporter: DIGITAL CURRENCY. >> EVER A TIME TO PAY ATTENTION TO THE ALTCOIN MARKET IS NOW >> THE MET TH TO THE ALTCOIN MARKET IS NOW >> THE MET TVERSEMETAVERSE >> Reporter: HYPED ON YOUTUBE. >> PASSIVE INCOME. >> Reporter: PROMOTING THE VENTURES DUBBED CRYPTO INN FF INN FLEW ESPECIALLIERS ARE RACKING UP VIEWS.
>> I'M OFFICIALLY A PARTNER. >> Reporter: OUR INVESTIGATION FOUND SOME OF THE PROMOTIONS HAVE LEFT INVESTORS FINANCIALLY DEVASTATED SOME INFLUENCERS CASH IN >> WELCOME >> Reporter: BEN ARMSTRONG IS THE MOST WATCHED CRYPTO IN INNFLUENCER ONLINE. >> DO YOU TAKE RESPONSIBILITY FOR LOSSES WHEN THEY SEE A RECOMMENDATION BY YOU AND GO OUT AND BUY AND IT CRATERS >> OF COURSE I DO. I FEEL I HATE IT WHEN WE TALK ABOUT STUFF THAT DIDN'T DO WELL. BITCOIN WAS 50/50 AT THAT POINT. >> WITH 5.2 MILLION SUBSCRIBERS AND FOLLOWERS ON TWITTER WHICH IS ALLOWED HIM TO EARN MORE THAN $30,000 FOR A SINGLE YOUTUBE ENDORSEMENT. >> I COULD EASILY MAKEOVER 100 K A MONTH.
>> Reporter: THAT MONEY ENCOURAGED OTHERS TO SWARM THE MARKET THIS SPRING, ANONYMOUS BLOCKCHAIN POSTED A LIST ON TWITTER NAMING 44 YOUTUBE PERSONALITIES AND PRICES FOR PAID PROMOTIONS. WE REACHED OUT TO THE INFLUENCERS TO VERIFY. SOME SAID THE PRICES WERE INFLAT INFLATED SOME MADE A MINIMUM OF $1,000 FOR EACH PROMOTIONAL VIDEO UNLIKE ARMSTRONG, SOME DON'T DISCLOSE THEY ARE GETTING PAID TO PLUG. >> NOT DISCLOSING, THAT IS A SURE FIRE WAY TO GET IN BIG TROUBLE. >> Reporter: JOE ROTUNDA OF THE TEXAS STATE SECURITIES BOARD SAYS HAS SEEN PAID PROMOTIONS THAT ARE NOT DISCLOSED, BUT PUSHED FRAUDULENT VENTURES >> SCAMS AND FRAUDS. THERE ARE MORE OUT THERE >> Reporter: HE AND I A TEAM OF REGULATORS FILED AGAINST METAVERSE CASINOS BY SELLING UNREGISTERED SECURITIES. THE ORDER SAYS ONE INN FLEW ESPECIALLIER SAID THEY HE WERE PAID THROUGH THE YOUTUBE CHANNEL. ONE SAID ANOTHER INNONE BROUGHTN >> WE SAW THE PROMOTION ON YOUTUBE.
WE SAW THEY PUBLISH AT A RAPID PACE >> BECAUSE IT IS SO EARLY, YOU HAVE NO IDEA WHAT IS REAL. >> THAT'S RIGHT. >> WHEN THERE IS MONEY TO BE MADE >> Reporter: TAYLOR WAS THE PRODUCT LEAD OF META MASK AND SHE IS AWARE OF THE YOUTUBE PERSONALITIES. >> I URGE ANYONE, IF THEY CONSIDER LEGIT, TO NOT FORM THE FAUX PARTNERSHIPS. ANY PAY FOR INFLUENCE. PAY FOR FOLLOWERS. >> Reporter: THAT'S A REALIZATION ARMSTRONG CAME TO WHEN HE STOPPED PRODUCING CONTENT IN JANUARY. >> IT IS A BURDEN OFFME. I DON'T HAVE TO WORRY ABOUT THESE PEOPLE I CAN SAY WHAT I WANT TO SAY IT IS A WAY TO BUILD YOUR BUSINESS YOU HAVE TO DO IT IN AN HONEST WAY. >> Reporter: ARMSTRONG SAYS BECAUSE HE FELT QUGUILTY FOR PROMOTING THE COIN THAT CRASHED, HE USED THAT MONEY TO REFUND VIEWERS WHO INVESTED IN THE PROJECT. THE MARKET CAP IS DOWN 40% YEAR TO DATE AND IN A BEAR MARKET AND ARMSTRONG SAYS THE LESS I PROMOTERS WILL GHOST PEOPLE. FLOZEN WASN'T PAID TO PROMOTE THE METAVERSE, BUT DELETED THE VIDEO AFTER WE STARTED ASKING QUESTIONS.
THE DREAM SHOW DID NOT RESPOND TO OUR REQUEST FOR COMMENT GUYS, BACK TO YOU. >> EAMON, IT IS FASCINATING. QUESTION FOR YOU THAT I'M TRYING TO UNDERSTAND. DOES THIS STUFF ACTUALLY WORK? >> Reporter: YEAH. THAT'S WHAT BEN ARMSTRONG SAID WHEN I TALKED TO HIM WE WENT TO ATLANTA WE SAW IN THE VIDEO HE HIS SET THAT HE HAS. HE HAS A YOUTUBE PRODUCTION FACILITY IN ATLANTA WHERE HE PRODUCES VIDEOS ON THIS TOPIC AND OTHER STUFF AS WELL. HE SAYS IT DOES WORK LARGELY BECAUSE A LOT OF THE COIN PROMOTERS DON'T HAVE ANY PLACE TO GO.
THERE ARE NOT A LOT OF PALACES O ADVERTISE INDIVIDUAL OFFERINGS THEY GO TO YOUTUBE THE FOLLOWERS OUT THERE, HE HAS 1.5 MILLION FOLLOWERS, THEY LOOK.
