What are the implications of Kim Kardashian’s Instagram posts on crypto tokens? Find out!
Three celebrities, including American media personality Kim Kardashian, boxer Floyd Mayweather and former basketball player Paul Pierce, were recently sued by an investor over their promotion of the altcoin EthereumMax (EMAX). What exactly happened?
The lead plaintiff, Ryan Huegerich, an investor in New York who purchased EMAX, filed a class-action lawsuit filed with the Central District Court of California. He alleged that the celebrity promoters colluded with EMAX executives Steve Gentile and Giovanni Perone to make “false or misleading statements to investors about EthereumMax through social advertisements and other promotional activities”. The lawsuit claims that the scheme artificially pumped up the value of the token and “duped potential investors into trusting the financial opportunities.”
Huegerich and other aggrieved investors purchased EMAX tokens between 14 May 2021 and 17 June 2021 and suffered losses as a result of the celebrities’ endorsement of the coin.
How celebrities, from Kim K to Mayweather, pumped up EMAX
In June 2021, Kim Kardashian posted an ad on her Instagram story to her then 220 million followers. Her post touted EMAX as the next big thing, captioning “Are you guys into crypto??? This is not financial advice but sharing what my friends just told me about the Ethereum Max token! A few minutes ago Ethereum Max burned 400…
