Kim Kardashian tries to shill EthereumMax, gets rebuked by head of FCA

Tue 07 Sep 2021 ▪ 11h24 ▪ 5 min read — by Hugh Renolds

Kimberly Noel Kardashian Wes, the American reality TV star, actress, and model has been criticized by the head of the UK Financial Conduct Authority (FCA) Charles Randall for blatantly shilling the EthereumMax project.

In June this year, American fashion model Kim Kardashian reached out to her 250 million Instagram followers and tried to advertise the EthereumMax cryptocurrency project launched by an anonymous team.

“Are you guys in crypto?” the promotion started, after which she went on to advertise what an awesome investment this new high-risk anonymous crypto project is.

Kardashian disclaimed any responsibility for the content of the post and stated that the publication was “not financial advice but sharing what my friends just told me.”

However, among the hashtags for the post was “#AD”, which unambiguously hints at the fact that the post was essentially a sponsored ad.

Kardashian was critisied for not being responsible with her ads

The head of the UK Financial Conduct Authority (FCA) Charles Randall criticized Kardashians for not bothering to inform her subscribers that the project she was promoting was “a speculative digital token created a month before by unknown developers – one of the hundreds of such tokens that fill the crypto-exchanges.” The head of FCA further added that it “may have been the financial promotion with the single biggest audience reach in history.”

As part of his recent speech at the Cambridge International Symposium on Economic Crime, Randall also stated that he cannot reliably announce that EthereumMax is a scam. However, this does not alter the fact that among cybercriminals, buying ads from social media influencers is a common practice, which in many cases leads to the criminals simply getting away, leaving investors without money.

“Some influencers promote coins that turn out simply not to exist at all. There are no assets or real-world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value. These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.” Randell explained.

Did the hype work?

It is also worth noting that according to a study conducted by the analyst Paul Barron, advertising integration with Kim Kardashian had almost no effect on the price of the EthereumMax token. It is possible that among the subscribers of the model there is a lack of a target audience necessary for a cryptocurrency project, as was the case with the Buzcoin project from Olga Buzova, or Kim’s readers were simply too lazy to understand the intricacies of buying digital assets.

Whatever the reason, however, the promotion with a reach of 250 million subscribers had no effect on the newly minted token.

Charles Randall, in turn, expressed criticisms of popular search engines and social networks for approving the publication of advertising content that could lead to investors losing their savings. The only search engine he praised was Google, which, according to the head of the FCA, agreed to block ads not approved by the UK Financial Conduct Authority: “Google is doing the right thing, and we will be closely monitoring developments. Now we need other online platforms like Facebook, Twitter, TikTok – they also need to rethink their policies and start doing the right thing. ”

We’ve had a bit too many shady investments like that turn out to be scams, and they only ever had people’s trust to thank for their success. The big takeaway is simple: do your own research and don’t believe the hype.

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Hugh Renolds

I believe in the bright future of crypto. I have been investing since 2017 and look to share my experience in, and thoughts on, crypto and the blockchain.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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