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Celebrity Kim Kardashian West Posts a Crypto Related Paid Story on Instagram

Celebrity Kim Kardashian West and other famous key opinion leaders have recently joined the cryptocurrency carnival.

Over the past two years, cryptocurrencies affairs are getting more popular in the public’s daily life. Many celebrities and influential people have a stronger identity with endorsing cryptocurrency and blockchain projects. Among them, the most well-known billionaire is the CEO of Tesla, Elon Musk, who named himself “Dogefather”.

For influencers these include big names such as DJ Khaled and Paris Hilton. However, compared with influential capability, Kim Kardashian West’s post, as an influencer with 228 million followers on Instagram, is regarded as almost certainly the most prominent social media encryption promotion ever.

Kim Kardashian West posted an Ethereum-related network project-related story on her Instagram story with 228 million followers on Monday.

In the story she posted, Kim Kardashian West shared a cryptocurrency called “Ethereum Max token”. The post was not financial advice, but Kim Kardashian West labelled it with hashtag #AD beneath, indicating that this post was charged.

It is unknown how much she gets paid for her posting yet. But according to a court filing in 2019, she might earn between $300,000 and $500,000 by a single posting on her Instagram account.

Despite Kim Kardashian, a boxing legend Floyd Mayweather and Jack Paul of the National Basketball Association also recently endorsed Ethereum Max.

What is the Ethereum Max token?

Ethereummax (Emax) is treated as an altcoin. Emax is an ERC-20 token on the Ethereum blockchain. A small part of the transaction can be redistributed to its token holders. It was launched in May with a 2 trillion supply in total.

According to its official website, users can use the Coinbase exchange app to buy Ethereum max tokens.

At present, No relevant information related to the white paper of the altcoin and other information about the team behind the project has been disclosed on its homepage.

Kardashian's Instagram Cryptocurrency Promotion Irks UK Financial Watchdogs

British financial watchdogs are wary of investors’ cryptocurrency investment risks introduced by well-known influencers like Kim Kardashian West.

Kim Kardashian West posted an Ethereum-related network project-related story on her Instagram story with 228 million followers, as reported by Blockchain.News on June 16.

In the story she posted, Kim Kardashian West shared a cryptocurrency called “Ethereum Max token”.

The British financial regulator pointed out on Monday that Kardashian has no need to disclose and promote this category to its fan base “a speculative digital token created a month before by unknown developers –- one of the hundreds of such tokens that fill the crypto-exchanges.”

Financial Conduct Authority (FCA) also warned investors of the risk of “speculative tokens”. Investors should be aware of the risk of losing money because FCA regulations or any compensation plan does not cover these tokens.

Randell said that:

“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.”

As an influencer with 228 million followers on Instagram, Kim Kardashian West’s post is regarded as almost certainly the most prominent social media encryption promotion ever.

Although Kim Kardashian West labelled it with hashtag #AD beneath, indicating that this post was charged, Charles Randell, Chairman of the Financial Conduct Authority, stated that this might be “the largest financial promotion in history”, according to Bloomberg’s report today.

Randell stated that it is not that this particular token is a scam, stating that:

“But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all”

Instagram Influencers Sued by Investors for Falsely Promoting Crypto Tokens

Instagram influencers Kim Kardashian and American boxer Floyd Mayweather have been sued by investors, accusing celebrities of falsely promoting crypto tokens to mislead investors.

The lawsuit, filed by a New York resident who bought EMAX tokens and lost money, is proposed to be filed as a class action in federal court in Los Angeles on Jan. 7, according to the report from Reuters on Jan. 11.

In June last year, Kim Kardashian West posted an Ethereum-related network project-related story on her Instagram story with 228 million followers.

Kim Kardashian West shared a cryptocurrency called “Ethereum Max token” in the story she posted. The post was not financial advice, but Kim Kardashian West labelled it with hashtag #AD beneath, indicating that this post was charged.

Mayweather promoted EthereumMax on his boxer shorts during his June fight with YouTube star Logan Paul.

The lawsuit reads:

“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities.”

The company’s EthereumMax was also named in the lawsuit. EthereumMax said in a statement:

“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project.”

Last Sept. 7, British financial watchdogs were wary of investors’ cryptocurrency investment risks introduced by well-known influencers like Kim Kardashian West.

Chairman of the Financial Conduct Authority Randell stated that it is not that this particular token is a scam, saying that:

“But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”

Kim Kardashian Charged $1.2M by the SEC For EthereumMax Promotion

American TV reality superstar, Kim Kardashian has been charged by the United States Securities Commission (SEC) for the promotion of EMAX Token, the native coin of the EthereumMax protocol.

As contained in a press release issued by the commission, Kim did not disclose that she was paid the sum of $250,000 for the promotion which she posted on her Instagram handle. As described by the SEC, the posted promotion contained a link that lead visitors to a landing page where instructions on how to buy the token can be obtained.

Kim has neither admitted to nor denied she breached the anti-touting provision of the federal securities laws. However, she has agreed to pay the total sum of $1.26 million, including $260,000 as disgorgement to stand in for the payment she received for the promotions and pre-judgment interest, and a $1 million penalty.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” said SEC Chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”

The regulator said it is mandatory that celebrities disclose whatever remuneration they were given and that the members of the public deserve to know. Per the sanctions levied on the celebrity, she has also agreed not to promote any crypto asset for the next three years. In addition, she has agreed to co-operate with the investigators as the case is still very much open.

The SEC is known to crack down on celebrities for promoting fraudulent crypto tokens. Back in June 2020, professional boxing legend, Floyd Mayweather was also indicted for the promotion of Centra Tech’s Initial Coin Offering (ICO) back in 2017.

Continuous Crackdown on Crypto by US SEC is a Bullish Factor for Investors – Report

Investors in the digital currency ecosystem have varying reasons to inject their capital into the emerging industry and the current crackdown from the United States Securities and Exchange Commission (SEC) is one of the main pushes for investors per a recent Bloomberg survey.

The results from the latest MLIV Pulse survey showed that of the 564 respondents surveyed, as many as 60% affirmed that the crackdowns present a positive push for investing in the industry. The SEC has not tapered down its enforcement actions in recent times as it has launched lawsuits against crypto firms, employees, and even celebrities that have contravened the law.

In one of its highest-profile actions, the SEC charged reality TV superstar, Kim Kardashian for non-disclosure of her earnings for the promotion of EthereumMax tokens (EMAX) considered a security by the regulator. When the indictment was brought against her, Kim Kardashian agreed to pay all of the fines worth $1.26 million without admitting or denying any wrongdoing.

According to the survey, around 65% of retail investors say they are more likely to invest in the industry with more enforcement action, a number that compares to 56% for professional investors.

“I’m in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity and it opens the doors for more professional investors to get involved in crypto, if it’s more regulated,” said Chris Gaffney, president of world markets at TIAA Bank. “The more they can get crypto out of the Wild West and into traditional investing, the better off it’s going to be.”

The rate of fraud and cybercrime in the industry is growing at a frantic pace and the fact that developers in the crypto industry have a watchdog to make them accountable will help in driving additional due diligence that can guarantee peace of mind for investors across the board.