Ultimate magazine theme for WordPress.

Celebrities accused of ‘betraying trust of their fans’ with paid crypto-currency posts

Stars in the dock for cryptocurrency advertising: Celebrities like Kim Kardashian are accused of having “abused the trust of their fans” with paid posts on social media

  • Watchdogs say celebrities are cheating on fans by promoting high risk online investments
  • Kim Kardashian has stood out among her followers for promoting a cryptocurrency
  • Boxer Floyd Mayweather has also promoted Ethereum Max and accepted it as payment for a fight

Celebrities are cheating on their fans by promoting high-risk investments online, guard dogs said yesterday.

Kim Kardashian was recognized for introducing a cryptocurrency to her 251 million social media followers.

The reality TV star posted an ad for Ethereum Max – a digital “token” similar to Bitcoin – on Instagram on Sunday. She said, ‘Are you into crypto ??? This is not a financial advice, just let me know what my friends told me about the Ethereum Max token! ‘

Miss Kardashian, 40, didn’t say how much she was paid for the ad, but a 2019 court motion found that she can make up to £ 361,000 for a single Instagram post.

Celebrities are cheating on their fans by promoting high-risk investments online, guard dogs said yesterday. Kim Kardashian was recognized for promoting a cryptocurrency among her 251 million social media followers

The reality TV star posted an ad for Ethereum Max, a digital ¿token¿ similar to Bitcoin, on Instagram on Sunday.  She said: are you into crypto ???  This is not financial advice, but tells me what my friends told me about the Ethereum Max token! ¿

The reality TV star posted an ad for Ethereum Max – a digital “token” similar to Bitcoin – on Instagram on Sunday. She said, ‘Are you into crypto ??? This is not a financial advice, just let me know what my friends told me about the Ethereum Max token! ‘

Boxer Floyd Mayweather has also promoted Ethereum Max, accepting the online tokens as payment for a recent fight with YouTube star Logan Paul.

Regulators fear that crypto tokens are too risky for most savers – and some are scams. According to Charles Randell, chairman of the Financial Conduct Authority, the stars are selling “the delusions of getting rich quick.”

Regarding Ethereum Max at the Cambridge International Symposium on Economic Crime, Mr. Randell said, “I can’t tell if this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dispose of new tokens on the back of pure speculation.

“Some influencers advertise coins that turn out not to be at all. There are no assets or real cash flows underpinning the price of speculative digital tokens, even the more popular ones like Bitcoin … ‘.

He added, “We just don’t know when or how this story will end, but – as with any new speculation – it cannot end well.”

He said that many people have “lost savings by being lured into the crypto bubble with delusions of easy fortune, sometimes after listening to their favorite influencers, ready to abuse their fans’ trust for a fee”.

Boxer Floyd Mayweather has also promoted Ethereum Max, accepting the online tokens as payment for a recent fight with YouTube star Logan Paul Logan Paul

Boxer Floyd Mayweather (left) has also promoted Ethereum Max and accepted the online tokens as payment for a recent fight with YouTube star Logan Paul (right).

Mr. Randell added that Miss Kardashian’s post was possibly the largest single audience financial promotion in history.

Watchdogs have sounded the alarm on cryptocurrencies like Bitcoin because they only exist online and their value is not related to any underlying asset.

Newer tokens like Ethereum Max are considered to be even riskier as they don’t have a “whitepaper” guide letting users know how they work. Few details are known about its developers.

Cryptocurrencies also fall outside of most regulations, making buyers vulnerable. Mr. Randell said, “To be clear … if you buy them you should be prepared to lose all of your money.”

advertising

Comments are closed.