Rapper 50 Cent is $8.7 million wealthier today than he was last Friday. Was it from touring? Music downloads? Merchandising? No, no, and no.
The extra cash came courtesy of Twitter.
The rap star tweeted his 3.8 million followers over the weekend and encouraged them to invest in H&H Imports, a penny stock of which he owns 30 million shares. The company has not been doing well ... so poorly that as of the end of September, the business had accumulated a deficit of $3.3 million and its very future was in question.
So Fitty took to the Twitterverse: "You can double your money right now. Just get what you can afford."
And: "They are no joke get in now"
His fans took his word for it. The H&H price was at $0.10 pre-tweet campaign; it jumped up to $0.39 after the drive. 50 Cent may soon bail on the fund a few mill richer, as the rapper's deal provides him the opportunity to cash in as the stock rises -- at 15, 25, or 50 cents.
Can this be legal? It seems to me that it wouldn't be kosher to encourage people to purchase stock in a company without informing them that you were a major shareholder in the outfit.
But if it is legal, is it right? Hyping a failing stock to potentially line your pockets at fans' expense doesn't sound like the right thing to do, whether the SEC sanctions it or not.
That being said, my gut tells me that if a person is getting investment advice from an entertainer's tweets ... well ... maybe he or she deserves whatever financial fallout ensues.
Do you think 50 Cent's tweets to hype his stock are ethical?
Image via photosbyalyssa/Flickr