The now billionaire Kim Kardashian is being targeted by the British government for her work as an influencer. the financial conduct authority (fca) in the united kingdom said that the businesswoman promoted the speculative cryptocurrency ethereum max (emax), a token that raised its value exceeds 1,370% in just two weeks, but it could be a ‘crypto’ fraud.
charles randall , director of the fca , revealed that the founder of kkw beauty posted an instagram story last June recommending the mysterious digital currency, which is not linked in any way to the ethereum network.
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did kim kardashian commit any infraction while promoting ethereum max?
In the post, Randall acknowledges that the most famous Kardashians did comply with Instagram’s rules, indicating that they were paid ads. furthermore, he said, kim had no obligation to explain or make transparent what ethereum max is.
“Of course, I can’t say if this particular token is a scam. but scammers routinely pay social media influencers to help them push and dump new tokens based on pure speculation. some influencers promote currencies that simply do not exist at all”, detailed the director of the fca.
“There are many stories of people losing all their savings when they get sucked into the cryptocurrency bubble under the illusion of getting rich quick,” Randall added. “and sometimes this happens thanks to influencers who are willing to betray their fans in exchange for money.”
At the time, the portal coindesk speculated that kim kardashian had earned between $300,000 and $500,000 (or more) promoting the emax. b> .
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what is ethereum max or emax?
“ethereum max, not to be confused with ethereum, was a speculative digital token created a month earlier (from kim kardashian’s post) by unknown developers, one of hundreds of tokens littering exchanges encryption,” explained charles. randall.
Little is known about this cryptocurrency, launched just last May 14 with a transaction volume of 16.11 million dollars and a price of $0.00000005875, according to data from coinmarketcap. It is primarily traded against ether, the native currency of the ethereum network on uniswap, a decentralized exchange that allows anyone to list a token.
As of May 30, the emax already had a transaction volume of almost 118 million dollars, that is, it increased 632% in just two weeks. the previous day it reached its maximum price of $0.000000863, which is 1.370% higher than its initial price of $0.00000005875.
However, the streak didn’t last long and ethereum max started to ‘deflate’. on July 15 it reached its historical minimum: 0.000000017 dollars per unit, a fall of 98% that it has not been able to recover. on August 1, his trading volume plummeted to $157,423, which is less than one-hundredth of his starting capital.
According to the British authority, this digital currency is not covered or regulated by the body, which represents a risk for investors.
“at the fca we have repeatedly warned about the risks of holding speculative tokens. To be clear: these tokens are not regulated by the FCA. are not covered by the financial services compensation plan. If you buy them, you must be prepared to lose all your money ”, emphasized the director of the fca.
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since kim kardashian has over 251 million followers on instagram alone, randall said maybe it was “promotion with the largest audience reach in history,” in a speech posted on the fca website.
image: kim kardashian via instagram.
“Do you like cryptocurrencies? This is not financial advice, but to share what my friends just told me about the ethereum max token. a few minutes ago ethereum max burned 400 trillion tokens – literally 50% of his portfolio management goes back to the entire e-max community,” the celebrity’s Instagram story reads .
in addition to kim kardashian, celebrities such as boxer floyd mayweather and former basketball player paul pierce have made announcements about ethereum max .
in fact, according to a press release, max ethereum was “exclusive of cryptocurrency (sic) accepted for online ticket purchase” for the recent paid fight – by mayweather vs. logan paul.