Kim Kardashian and Floyd Mayweather are some of the biggest celebrities in America. They are no stranger to being in the spotlight, from reality TV to boxing. Though it isn’t so positive, their most recent media headline involves cryptocurrency – an area that, although promising to many, has also become well known to be rife with scams and rug pulls.
If you haven’t already guessed: these A-list celebrities have allegedly been involved in a “pump and dump” with a cryptocurrency called EthereumMax. EthereumMax offers an ERC-20 token on the Ethereum network. The EthereumMax token trades at a minuscule price which is even lower than a fraction of a penny – a common trend among suspicious tokens.
It appears both celebs promoted the token with no other incentive than a payday. Mayweather promoted it on his trunks during an exhibition boxing match against social media star Logan Paul. On the other hand, Kim Kardashian promoted the token on Instagram to her quarter-billion followers. Mayweather says he received a total of $30 million for all the ads on his trunks during that fight, including his EthereumMax promotion. Both Kim Kardashian and Floyd Mayweather face a lawsuit for their involvement in promoting the token, surprising many in the area like Darren Heitner, Professor of Sports Law at the University of Florida. Heitner explained, “It is rarely beneficial for someone to enter into an inauthentic relationship with a brand, particularly if that person has accumulated significant wealth throughout his/her career. That is what makes a situation like that concerning EthereumMax so mind-boggling.” This news is an excellent reminder for all investors to do their due diligence and research, especially in crypto markets where regulation lags and scams often appear.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.