Kim Kardashian Accused of Promoting a Cryptocurrency that Could be a Scam

Kim Kardashian Accused of Promoting a Cryptocurrency that Could be a Scam

Kim was recently accused of promoting a crypto that could be a scam. Keep reading and find out all the details about what is happening in this article. Read on!

Kim was recently accused of promoting a crypto that could be a scam. Keep reading and find out all the details about what is happening in this article. Read on!

The British government has warned that the attitude of influencers like Kim Kardashian creates a risk for retail investors by promoting "dark tokens" of cryptocurrencies.

Last June, Kardashian announced to her more than 200 million Instagram followers the little-known cryptocurrency Ethereum Max.

The British government has warned that the attitude of influencers like Kim Kardashian creates a risk for retail investors by promoting "dark tokens" of cryptocurrencies.

Delivering a speech on the difficulties of regulating cryptocurrencies, the chairman of the UK's Financial Conduct Authority argued that Kardashian's post was probably the most widely viewed financial promotion in history.

However, he found it to be an excellent example of how influential celebrities can lure investors into currencies that could turn out to be scams. Also Paris Hilton and DJ Khaled are among the numerous other celebrities who have promoted crypto projects.

"In line with the rules of Instagram, [Kardashian] revealed that this was an advertisement," said Charles Randall at today's Cambridge International Symposium on Economic Crime.

"But she did not have to reveal that ethereum max - not to be confused with ethereum - was a speculative digital token created a month earlier by unknown developers, one of hundreds of such tokens that stock exchanges."

Randall added: “Of course, I can't tell if this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens based on pure speculation. Some influencers promote coins that turn out not to exist at all."

However, he found it to be an excellent example of how influential celebrities can lure investors into currencies that could turn out to be scams.

The FCA chairman said that regulators should have more power over the world of cryptocurrencies, targeting the promotions of disreputable cryptocurrencies and the risks arising from regulated financial firms trading unregulated digital tokens.

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