Entrepreneur Kim Kardashian and ex-boxer Floyd Mayweather have been accused of misleading advertising of the cryptocurrency EthereumMax. All the details
Entrepreneur and TV celebrity Kim Kardashian and ex-boxer Floyd Mayweather Jr. have been sued in federal court in California, United States, for misleading advertising for a cryptocurrency.
The class action ( class action lawsuit) was filed in the Central District of California court last Friday. The accusation against Kardashian and Mayweather is that they exploited their popularity on social media (the former has 278 million followers on Instagram, the latter over 27 million) to make "false and misleading claims" about a cryptocurrency called EthereumMax and to do so. increase in value in an artificial way.
WHAT KIM KARDASHIAN DID
Kardashian had published some content on his Instagram profile (introduced by the question Are you guys into crypto ???? ) to promote EthereumMax, taking care to add the hashtag #ad (for advertising ) to his message, and therefore explicitly indicating that it was sponsored content.
It is not clear how much Kardashian was paid for that promotion, but usually – CNBC reports – to get her to sponsor a product or service on Instagram it takes between $ 500,000 and $ 1 million.
WHAT FLOYD MAYWEATHER JR HAS DONE.
Mayweather, on the other hand, sponsored the EthereumMax during his boxing match with Logan Paul, a famous American youtuber: the cryptocurrency could be used to buy tickets for the event.
The ex-boxer also promoted the EthereumMax at a major bitcoin conference in Miami, but was challenged once he got off the stage.
WHAT IS ETHEREUMMAX
Since the beginning of last June, EthereumMax has lost about 97 percent of its value. Some investors think that behind the cryptocurrency there is a pump and dump scheme: that is, a fraudulent scheme that aims to greatly increase the price of an asset through deceptive messages, in order to accumulate profits before the collapse in value. Kardashian and Mayweather have been accused of "advertising" their follower audience to buy EthereumMax.
The very name of EthereumMax aims to create confusion among investors due to its resemblance to ether, the second most popular cryptocurrency after bitcoin. EthereumMax, however, has nothing to do with ether and the platform linked to it, called Ethereum.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ethereummax-accusa-kim-kardashian-floyd-mayweather/ on Wed, 12 Jan 2022 14:53:36 +0000.