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Following some reports that there are representatives from this entity that promote investing in their platform, the Securities and Exchange Commission released a public advisory about Movie Daddy, a watch-to-earn platform that offers its users the opportunity to earn while watching and rating movie trailers.
On its website, Movie Daddy emphasized that its goal is to be one of the most trusted resources for quality entertainment.
“MOVIE DADDY represents that it collects profiles of movie fans and learn their individual tastes. It then uses these data to run highly efficient trailer campaigns for distributors, studios and video on-demand services. It also runs retargeting campaigns on YouTube, Facebook, Instagram, Tiktok and other platforms where it spends time discovering new content. It claims that its fans in turn, get cash rewards on a ‘Revshare’ model the more they engage with its platform,” SEC stressed in a statement.
According to the platform, interested users can choose any of the nine available subscription plans with corresponding tasks by simply watching the trailer videos available for 60 seconds:
- Baby Bear Plan worth 40 USD
- Mama Bear Plan worth 100 USD
- Papa Bear Plan worth 250 USD
- Upcoming Star Plan worth 478.00 USD
- Silver Star Plan worth 675.00 USD
- Master Plan worth 898.00 USD
- Expert Plan worth 1,400.00 USD
- Veteran Plan worth 1,995.00 USD
- Legend Plan worth 2,990.00
And with its motto, “So Don’t get bored & start getting paid today with Moviedaddy while you find your favorite movies and TV shows,” the website allegedly offers a $48 to $3,600 yield to its investors according to the respective subscription plans.
With this, the SEC noted that Movie Daddy’s scheme involves an investment contract, an investment that expects a reasonable expectation of profits from the efforts of others.
The Commission also emphasized that the Securities Regulation Code (SRC) requires the said offer and sale of securities to be duly registered with the Commission and that the concerned entity or its agents should have the appropriate registration or license to sell such securities to the public.
“Based on the Commission’s database, MOVIE DADDY, is NOT REGISTERED as a corporation or partnership and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC),” the regulatory agency clarified.
The SEC also tagged Movie Daddy’s products and services as a Ponzi Scheme, a scheme where the scammer uses the money from the new investors to pay the fake profits of the older investors:
“The offering and selling of securities in the form of investment contracts using the ‘Ponzi Scheme’ which is fraudulent and unsustainable, is NOT a registrable security. The Commission will not issue a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme.”
According to the country’s regulatory arm, individuals involved in selling or convincing the public to invest in Movie Daddy’s scheme may be held criminally liable under Section 28 of the SRC and penalized with a maximum fine of ₱5,000,000.00 or imprisonment of 21 years or both.
They will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and taxes can be correspondingly assessed.
“In view thereof, the public is hereby advised NOT TO INVEST or to STOP INVESTING in the investment scheme being offered by MOVIE DADDY, and its representatives,” SEC concluded.
This article is published on BItPinas: SEC Warns Public: Stop Investing in Movie Daddy’s Watch-to-Earn Scheme
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.