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Financial authority criticizes Kim Kardashian for promoting an unproven cryptocurrency

In today’s day and age, ads that guarantee easy money are an effective bait for those who are impulsively willing to invest, even without paying attention to the risks or other qualms associated with such a transaction.

Kim Kardashian, a highly influential public figure on Instagram, promoted on her EthereumMax (or eMax) account, a cryptomoney not linked to the known Ethereum, recently appeared on the Internet. The UK Financial Conduct Authority criticized this action, presenting some considerable red flags.

“The financial promotion with the largest audience reach in history”

Charles Randell, head of the UK’s Financial Conduct Authority (FCA), cataloged Kim Kardashian’s publicity stunt on eMax in this way.

According to the BBCRandell’s statements were issued at the Cambridge International Symposium on Economic Crime.

In that instance, he defined EthereumMax as “A speculative digital token created a month earlier by unknown developers”. Without going too far, when reviewing the web portal eMax official, the profiles on social networks that are linked only date from May of this year. “Can’t tell if this particular token is a scam”said the expert in reference to Ethereum Max.

A highlight in that intervention by Randell was the high reach of the influencer’s account indicated on Instagram, since the invitation to invest speculatively in this emerging cryptocurrency potentially reached 250 million people, his base of followers in the social network.

Outside of influencer marketing in which eMax had the impetus of Kim Kardashian, the cryptocurrency has launched advertising campaigns at sporting events (boxing, in particular), even involving boxer Floyd Mayweather.

With such a level of diffusion, it is natural for a cryptocurrency to generate interest and impulsive investments. However, according to what the price history of the token, since yesterday its value has presented a significant downward trend. Those who are after this token, claim on their website and social networks that this is just the beginning of “the fastest growing crypto community.”

Investing in cryptocurrencies involves adhering to a speculative business model. There are people who have managed to execute financial strategies successfully, but with the support of a carefully formulated strategy and assuming the risk of possible losses in the face of market volatility.

The head of the British Financial Conduct Authority also commented in his presentation that he had warned on more than one occasion about the risks of holding “speculative tokens”, which are not regulated by the entity, nor covered by any compensation scheme. “If you buy them, you must be prepared to lose all your money”added.

Without notions about how money works and acquires value and, logically, without knowledge about the dynamics behind the operation of cryptocurrencies, an investment of this category could imply a leap into the void for money that is intended to perform better. For this reason, if you choose this path, it is extremely important to have the necessary instruction and some advice, if possible, as a good impetus to enter this world.

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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