A cryptocurrency firm co-founded by U.S. rapper Ghostface Killah hopes to raise $30 million in a digital coin sale.

Cream Capital said Wednesday it would raise the funds through an initial coin offering (ICO) — a method of crowdfunding that has been met with much scrutiny from regulators recently.

It claims it was co-founded by the rapper, who is a prominent member of hip hop group Wu-Tang Clan.

Ghostface Killah is the latest in a long line of celebrities — from Paris Hilton to Jamie Foxx — who have put their names behind ICOs and crypto ventures.

"I think the interest of celebrities is a bit of a double-edged sword," Brett Westbrook, chief executive at Cream Capital, told CNBC via email.

Westbrook said that celebrities should be cautious of the influence they have when promoting cryptocurrencies, and should understand the blockchains (distributed ledger technologies) that underpin them.

"I personally think that anything that puts cryptocurrencies in front of the eyes of everyday people is a great thing for the markets overall. On the other hand, I believe it's important that celebrities know the importance of their endorsements and understand the underlying principles of blockchain technology," he said.

"The last thing we need is a household name promoting what turns out to be a scam ICO."