Kim Kardashian promotes coup with cryptocurrency and enters the sights of regulators
Kardashian started to promote Ethereum Max, a project that promises guaranteed profitability on investments in cryptoactives.
However, the project has raised suspicions of being a scam that has used the famous socialite image and reputation to deceive users.
After the promotion, Kardashian received criticism from Charles Randell, head of the UK’s Financial Conduct Authority, the FCA. In addition, the regulator also pointed out that the businesswoman could be investigated for promoting the coup.
“This is a speculative digital token created a month earlier by unknown developers. Still, Kardashian urged her 250 million followers to invest in the cryptocurrency by promoting an ad for Ethereum Max,” he said.
Randell even accused the influencer of harboring illusions of quick wealth. Thus, leading thousands of citizens to lose their money
The FCA president also said Kardashian’s Instagram post was not flagged as advertising. Therefore, she was misleading her followers by believing that she herself was investing in the cryptoactive.
Furthermore, the regulator stated that the publication may have been the financial publicity with the greatest public reach in history.
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The token promoted as Ethereum Max should not be confused with the Ethereum cryptocurrency.
“I can’t say if this specific token [Ethereum Max] is a fake. Social media influencers are routinely paid by scammers to help them ‘pump and dump’ new tokens out of sheer speculation. Some influencers promote currencies that just don’t exist,” he said.
Randell also said that about 2.3 million Britons currently own cryptocurrencies. Of these, 14% use credit to buy them, “thus increasing exposure to financial losses”.
According to the executive, the FCA has repeatedly warned Britons about the risks of holding “speculative tokens”, which are not regulated by the FCA or covered by any compensation scheme.
“If you buy them, you must be prepared to lose all your money,” he said.