Kim Kardashian is under investigation for pumping crypto tokens that could harm investors. The Financial Conduct Authority in the UK has pointed out that Kim is getting paid to promote tokens that could be risky. With the kind of reach she has, it could do big damage. The idea behind such promotions is to dump tokens on the investors as prices move up. In the past, we have also seen the founder of Mcafee getting arrested due to the same reason.
Kim has reportedly participated in a scam.
Kim Kardashian has a huge Instagram following and influence. Considering that, it wouldn’t be much work for her to promote any token and get it pumped up indefinitely. This could be a problem as the project where investors blindly put their money because of her could turn out to be a scam. She gets the money, the scammers also make a lot and ultimately, the common public gets screwed.
Her actions were also pointed out by the chairman of the UK FCA while talking about the need for regulation in the crypto space. He said,” Which brings me on to Kim Kardashian. When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by ‘joining the Ethereum Max Community,’ it may have been the financial promotion with the single biggest audience reach in history”. The problem with this was that neither did she say that Ethereum max was not ETH nor that the post was an ad. Do note that the token she promoted was just a month old, and its developers are also unknown.
The need for regulation
This is one of the reasons that regulation is very much required in the crypto space. Otherwise, people will continue to get scammed. In fact, the chairman of the FCA in the UK also said that they would work with online platforms to make sure that consumers get information and stay away from scams. FOMO created by influencers is a prime concern as investors don’t really understand the risks with such new projects. This is why they are working on laws that take these issues into account.
What are your thoughts on Kim promoting the shady Ethereum max token on her Instagram? And do you think this was a scam and Kim Kardashian should be under investigation? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: ETH 2.0 gets popular as TVL in staking pool nears $30 Billion.
