Over the years, the crypto-verse witnessed the arrival of several celebrities. However, now, reality TV star Kim Kardashian along with boxing champion, Floyd Mayweather Jr. were in deep trouble for endorsing a crypto token.
The crypto market is home to thousands of coins. Segregating the legit ones among a pool of scammy coins can be quite the task. Further deceptive promotions could elevate the fear of being scammed. With the intention of protecting gullible investors, a lawsuit was filed against Kim Kardashian as well as Mayweather Jr. in the Los Angeles federal court. NBA player Paul Pierce was also a part of the lawsuit.
Back in June 2021, Kim Kardashian surprised many with a crypto-related post on Instagram. The reality star was seen promoting a token called EthereumMax or EMAX. With a following of 250 million, Kardashian is one of the most popular celebrities on the gram. While her post followed a disclaimer that said “this is not financial advice,” she was seen endorsing EthereumMax tokens.
Even though she mentioned “#AD” in her post, Kim Kardashian was swimming in troubled waters.
Boxing champion, Floyd Mayweather Jr. endorsed the token during his popular fight with YouTuber Logan Paul. The EthereumMax token logo was all over his boxing trunks.
Kim Kardashian called out for misleading endorsments
In the lawsuit, Plaintiff Ryan Huegrich alleged that both, the promotors as well as the company’s executives were in the wrong for trying to pump the price of the coin. The lawsuit read,
“In plain terms, 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.”
The plaintiff pointed out that, throughout May and June, the execs of EthereumMax had garnered control over the tokens. Therefore, to amass profit through the sale of the acquired EMAX tokens, the execs sought aid from celebrities like Kim Kardashian, Paul Pierce, and Mayweather Jr.
Responding to the lawsuit, EthereumMax stated that the allegations reeked of misinformation. The network stated,
“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project. We dispute the allegations and look forward to the truth coming out.”
Should you really purchase celebrity-endorsed cryptocurrencies?
Several across the globe were smitten by the crypto bug. From making big investments to rolling out their own crypto token, celebrities were creating an uproar in the crypto market.
While not all celebrities live by the idea of ethical advertising, investors are advised to do their own research before pouring their money into certain assets.