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Kim Kardashian promotes cryptos
From reality star to successful businesswoman in the cosmetics and clothing industry as well as “social media queen”: Billion girl Kim Kardashian West ranks 24th on Forbes’ list “America’s Self-Made Women 2021”. Like many other influencers, the mother of four also advertises on her social media platforms. The influencer reaches 252 million followers via the Instagram platform, for example. In June 2021, Kim Kardashian posted a story in which she advertised the cryptocurrency “Ethereum Max”, as reported by Entrepreneur Europe. However, this has nothing to do with the second largest cryptocurrency, Ethereum.
“Are you into cryptocurrencies? This isn’t financial advice, but I’ll 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 their admin wallet that the Entrepreneur Europe said in the story.
British finance authority is critical
The British tax authorities became aware of this post. The chairman of the UK’s Financial Conduct Authority, Charles Randell, criticized the influencer’s Instagram post in a speech, according to CNBC. According to the report, Randell said the post was believed to be the largest-reaching financial advertisement in history. The social media star reportedly called on his followers to “speculate with crypto tokens by joining the Ethereum Max community,” according to CNBC.
Influencers and (dubious) crypto advertising
Randell could not say with certainty that the mysterious cryptocurrency was a fraud, but he did explain that other influencers had already advertised tokens that did not even exist in the past. In general, not much is known about the Ethereum Max cryptocurrency. According to Randell, it was created by unknown developers, as reported by Entrepreneur Europe. As CNBC notes, Randell stated that “social media influencers are regularly paid by scammers to help them drive up and sell new tokens on the basis of pure speculation.” This strategy of market manipulation is also known as a pump-and-dump scheme. According to Randell, people should be prepared to lose their money.
However, Kim Kardashian isn’t the only celebrity to have promoted cryptocurrencies in the past, Heise reports. Celebrities also include Paris Hilton, Floyd Mayweather and Steven Segal. Mayweather and Segal were subsequently fined by the SEC for not indicating that their postings were paid advertisements.
Whether the cryptocurrency advertised by Kim Kardashian turns out to be a fraud remains to be seen. According to the US broadcaster, neither Kim Kardashian nor Ethereum Max have responded to CNBC’s requests to comment on the criticism of the chairman of the British financial regulator.
E. Schmal / editors finanzen.net
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