The now billionaire Kim Kardashian will be targeted by the British government for her work as an influencer. Financial Conduct of the Authority (FCA) in the UK, the businesswoman said she would encourage speculative action Cryptocurrency Ethereum Max (EMAX), a sign that increased its value by more than 1,370% in just two weeks, but it could be a & # 39; crypto & # 39; scam be.
Charles Randall , Director of the FCA , revealed that the founder of NPP beauty published an Instagram Story last June in which the mysterious digital currency was recommended that in no way compatible with the ether Network.
Since Kim Kardashian has more than 251 million followers At Instagram alone, said Randall, it might be "the financial advertising with the greatest audience reach in history", in a speech on the FCA Website.
Image: Kim Kardashian via Instagram.
"Are you into crypto? This is not a finance advice, but rather to share what my friends have just told me about the Ethereum Max Sign! Some minutes ago Ethereum Max 400 trillion tokens burned – literally 50% of his management portfolio goes back to the whole E-max Community, " Read the celebrity's Instagram story.
In addition to Kim Kardashian , Celebrities like boxers Floyd Mayweather and former basketball player Paul Pierce have made announcements over Ethereum Max .
In fact, Max was Ethereum, according to a press release "Cryptocurrency Exclusive (sic) accepted for the purchase of online tickets" for final fighting wages – per Mayweather vs. Logan Paul.
Has Kim Kardashian committed any breach while promoting Ethereum Max?
In the publication, Randall admits that the most famous Kardashian followed the rules of Instagram which indicates that the ads were paid for. He also said Kim wasn't required to explain or be transparent about what Ethereum Max is .
“Of course I can't tell if this particular token is a scam. However, scammers routinely pay social media influencers to help them push and dump new tokens based on sheer speculation. Some influencers advertise currencies that simply don't exist. " said the director of the FCA.
"There are many stories of people who have lost all of their savings when drawn into the cryptocurrency bubble under the illusion of getting rich quick." added Randall. “And sometimes this happens thanks to influencers who are willing to betray their fans in exchange for money . "
At the time, the CoinDesk portal speculated that Kim Kardashian would have done between $ 300,000 and $ 500,000 (or more) by promoting the EMAX .
What is Ethereum Max or EMAX?
"Ethereum Max, not to be confused with Ethereum, was a speculative digital token created a month earlier (from Kim Kardashian's post) by unknown developers, one of hundreds of such tokens that fill crypto exchanges." explained Karl. Randall.
Little is known about this Cryptocurrency , only on May 14th with a. started Transaction volume of $ 16.11 million and a Price from 0.00000005875 dollars , according to data from CoinMarketCap. It is first and foremost traded against ether , the native currency of the Ethereum network on Uniswap, a decentralized exchange that allows anyone to list a token.
Until May 30th is the EMAX already had a transaction volume of nearly $ 118 million, that is, it was 632% increased in just two weeks . The day before it hit its high of $ 0.000000863, which is a 1.370% increase over the original price from $ 0.0000005875.
However, the streak didn't last long and Ethereum Max started to "deflate" . On July 15, it hit its all-time low: $ 0.00000017 per unit. a 98% decrease from that it couldn't restore. August 1st its transaction volume plummeted to $ 157,423 , which is less than a hundredth of its initial capital.
According to the UK authority, this is digital currency is not covered or regulated by the body which poses a risk for investors.
“At the FCA, we have repeatedly warned of the risks of holding speculative tokens. To be clear, these tokens are not regulated by the FCA. They are not covered by the Financial Services Compensation Plan. If you buy them you must be prepared to lose all of your money ” stressed the director of the FCA.