Can you really blame the celebrities?
Let’s be honest if you are taking financial advice from Kim Kardashian that says more about you than her. Don’t get me wrong, Kim makes a lot of money, but if it was Kris Jenner, I’d maybe understand more.
These aren’t criminal complaints, just lawsuits, so we will have to see how it all shakes out.
Kim Kardashian, Floyd Mayweather, and Paul Pierce have been named defendants in a lawsuit filed on behalf of all investors who purchased EthereumMax tokens between May 14, 2021, and June 27, 2021. The complaint alleges that these influencers with a substantial number of fans and followers caused others to buy-in to a worthless cryptocurrency platform and that they exited with major financial gains as soon as the tokens increased in value.
Thereafter, those who were convinced to purchase the tokens by Kardashian, et al. were left holding the proverbial bag.
According to the complaint, after Kardashian urged her 251 million Instagram followers to get involved in the cryptocurrency play, the price of the token shot up more than 1,370%. Then, it crashed. Hard. It dropped 98% and has never been able to recover.
The plaintiff says Kardashian, Mayweather, and Pierce made false/misleading statements as part of an organized pump-and-dump scheme, particularly because there was no lock-up period to restrict the aforesaid individuals from selling the tokens they had been granted in exchange for their promotional activities. Basically, they were able to promote the token and sell their allotment as soon as the artificial spike set in, as a byproduct of their own advertisements.
“EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from ‘trusted’ celebrities, to dupe potential investors into trusting the financial opportunities available with EMAX Tokens,” states the complaint. It also cites to the United Kingdom’s Financial Conduct Authority chair, Charles Randall, who previously took issue with Kardashian’s EthereumMax social media post noting that, “social media influencers [like the Promoter Defendants] are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation.”
The scam allegedly works something like this and I am just going to give round numbers to make it easier for people.
Kim Kardashian is given a million tokens at 10c. She then tells her followers to buy the token which raises the price to $1 at that point she sells her million tokens at a massive profit before it crashes back down to 10c, but all the people who bought the token at 10c and above are stuck with a massive loss. If you bought your tokens at 50c and didn’t sell when they got to a dollar, now they are only worth 10c and it doesn’t look like they will ever recover back to 50c or more.
Once again those are just round numbers, normally crypto stock is much cheaper.
Flip the pages to see the celebrities endorsing it.