On October 3, 2022, the SEC decided to issue an indictment against famous influencer Kim Kardashian. The regulator accused Kim of illegally promoting a cryptocurrency called EthereumMax (EMAX). The SEC announcement made headlines all over the world, bringing fame to a crypto that was little known. This contributed to the increase in the price of EthereumMax (EMAX).
EMAX goes from $0.000000004232 to $0.000000009605
On October 3, following the SEC announcement, the price of EthereumMax (EMAX) increased by 126% from $0.000000004232 to $0.000000009605. Admittedly, this peak is not very significant, but it shows how a simple announcement can contribute to the rise in value of a crypto. It should be noted that the token fell to 0.000000005544 dollars shortly after its 126% increase.
Recall that the SEC sentenced American star Kim Kardashian to pay a fine of $1.26 million. The problem was not that the star gave his support for a crypto on his Instagram account. The real concern is that she did so without telling her followers that she had received $250,000 in exchange for the promotion. For the United States SEC, this is clearly an illegal act that needed to be punished.
It appears that Kim Kardashian avoided a lawsuit by agreeing to pay the fine of 1.26 million dollars. This amount includes the reimbursement of the $250,000 she received in exchange for promoting EthereumMax (EMAX). On social networks, many have criticized the presence of Kanye West’s ex-wife in this affair. Others are happy to have made a profit in the current bear market environment.
For many regulators and professionals in the crypto sector, this case must appeal to consumers. Investors need to understand that investment projects are not automatically legitimate because a celebrity has endorsed them.
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