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The now billionaire Kim kardashian the british government for his work as an influencer. The Financial Conduct Authority (FCA) from the United Kingdom singled out the businesswoman for promoting cryptocurrency speculative Ethereum Max (EMAX), a token that its value rose more than 1,370% in just two weeks, but that it could be a ‘crypto’ fraud.
Charles randall, FCA director, I reveal that the founder of KKW Beauty I published last June a story of Instagram recommending the mysterious digital currency, which is not tied to the network in any way Ethereum.
Given that Kim kardashian how much more than 251 million followers only in Instagram, Randall assured that perhaps it was “The financial promotion with the largest audience reach in history”, in a speech posted on the website of the FCA.
Image: Kim Kardashian via Instagram.
“Are they into crypto? This is not financial advice, but rather to share what my friends just told me about the token! Ethereum Max! A few minutes ago Ethereum Max burned 400 trillion tokens – literally 50% of his management portfolio giving back to the entire community E-Max“the celebrity’s Instagram Story read.
In addition to Kim kardashian, celebrities like boxer Floyd mayweather and the former basketball player Paul pierce they have made announcements about Ethereum Max.
In fact, according to a press release, Ethereum Max was “the Exclusive Cryptocurrency (sic) accepted for the purchase of tickets online” for the recent Mayweather vs. Logan Paul.
Did Kim Kardashian commit any infraction while promoting Ethereum Max?
In the post, Randall acknowledges that the most famous Kardashian yes it complied with the rules of Instagram, by 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 tell 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 coins that just happen to not exist at all. “, detailed the director of the FCA.
“There are many stories of people who lose all their savings when they are attracted to 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”.
Back then, the CoinDesk portal speculated that Kim kardashian Would have won between $ 300,000 and $ 500,000 (or more) by promoting the EMAX.
What is Ethereum Max or EMAX?
“Ethereum Max, not to be confused with Ethereum, was a speculative digital token created a month before (from Kim Kardashian’s post) by unknown developers, one of hundreds of such tokens that fill crypto exchanges”explained Charles Randall.
Little is known about this cryptocurrency, launched just last May 14 with a transaction volume of $ 16.11 million and a price of $ 0.00000005875, according to data from CoinMarketCap. Mainly trades against Ether, the native currency of the Ethereum network on Uniswap, a decentralized exchange that allows anyone to list a token.
By May 30, the EMAX it already had a transaction volume of almost 118 million dollars, that is, up 632% in just two weeks. A day earlier, it reached its maximum price of $ 0.000000863, which represents a increase of 1,370% more than its initial price from 0.00000005875 dollars.
However, the streak did not last long and Ethereum Max started to ‘deflate’. On July 15 it touched its historical minimum price: 0.000000017 dollars per unit, a 98% drop from which he has not managed to recover. On August 1, its transaction volume plummeted to $ 157,423, that is, less than one hundredth of your initial 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. They are not covered by the Financial Services Compensation Plan. If you buy them, you must be prepared to lose all your money“, stressed the director of the FCA.