Kim Kardashian sued for advertising scam with Cryptocurrencies

Enrique RFollow

Jan 18, 20223 min de lectura

The advertising scheme that affected thousands of users is known as "pump and dump"

The complexity of the world of cryptocurrencies gives rise to some maneuvers, publicity stunts that attract many people and that do not always deliver what is promised.

Kim Kardashian has recently been sued, along with basketball player Paul Pierce and boxer Floyd Mayweather, for being part of an advertising campaign that some affected considered misleading.

Ethereum Max Token is Controversial Over Lawsuit

In the case of Kim Kardashian, she shared an advertising post on her Instagram account in mid-2021, where she has more than 260 million followers.

Although in the publication she clarifies that she is not an expert, and it was not financial advice, she provides "testimonials and advice from friends" to stimulate the purchase of the cryptocurrency.

But it is not advertising that is the problem, the lawsuit that several affected parties have started, calling on others to join, refers directly to a deceptive advertising tactic, known as pump and dump.

This "trick" consists (with some variation) in which influencers receive money for advertising guidelines, generally also buy the cryptocurrency and thus take advantage of the giant rise they create with advertising.

In the case of Ethereum Max, it saw an aggressive surge, over 1000%, bringing strong gains to crypto holders during the hype, but as the hype passed it began to fall, with a current loss of almost more than 95% of its value.

Cryptocurrency transactions increased more than 600%

The numbers don't lie. The aggressive rise that Ethereum Max experienced was evidently due to the advertising campaign, so the direct benefit went to crypto holders who knew about the strategy, including Kardashian, Pierce and Mayweather, the plaintiffs allege.

In less than a month, the token grew 1,370% and went from 16 million dollars in transactions to more than 100 million.

To all this, the demand does not seem to prosper. Although the publicity tactic is obviously malicious, they are investments that people make without pressure or coercion and although this type of risk can bankrupt someone, the first responsibility lies with the same person.

Ethereum Max defends itself against the lawsuit

Responsible parties linked to the cryptocurrency made it clear that the lawsuit is not appropriate and will clarify the whole matter.

The legal advisers of Ethereum Max and of the defendants know that although "pump and dump" is prohibited for stock market shares, in the case of cryptos there are no specific laws that condemn it.

Although this practice with cryptocurrencies is not legally classified as a scam, it is advisable to take several precautions before investing in cryptocurrencies:

• If it seems too good to be true, it probably is: Offers and promises to multiply your investment by 10 in a month are usually scams, lies.

• Consult several sources before investing: Especially if the first source you see are athletes, models or influencers who do not specialize in this world, people who are obviously operating within some advertising scheme, we cannot be guided by that opinion directly.

• Avoid a spiral of investment without results: It is common among scammers to encourage someone who has just lost $100, to invest $500 to "get back and win". Some fall into this spiral and end up scammed out of thousands of dollars.

• Use only official Apps: Avoid pirated programs, there are thousands of scammers with programming skills, creating ghost Apps to stimulate investments and then "disappear".