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Kim Kardashian and Floyd Mayweather on trial for promoting cryptocurrency scam

A group of investors has filed a lawsuit against Kim Kardashian, Floyd Mayweather and Paul Pierce for promoting the EthereumMax cryptocurrency. The celebrities are accused of making false and misleading statements about the coin “through social media ads and other promotional activities.”

EthereumMax, which has no connection to Ethereum, spiked in price in early 2021 when its initial price was $ 0.00000006 on May 16 and jumped to more than 1000% on May 29. The increase in value came after it was used to purchase tickets to Mayweather and Logan Paul’s Exhibition Boxing Fight, in that fight Mayweather used an ad by putting an EthereumMax URL on his shorts during the fight and Pierce tweeted about cryptocurrency.

Another significant contributor to her promotion was Kardashian, who posted about EthereumMax to her 278 million Instagram followers through Stories. The influencer put a small disclaimer stating that it was a paid ad, although he claimed in the post that he had heard about the coin from friends and that everything was reliable.

According to Morning Consult, 19 percent of respondents who found out about Kardashian’s post invested in EthereumMax.

As expected in these types of cryptos, the price of EthereumMax fell 98% the next day after Kardashian’s publication and continued to plummet, eventually falling below its initial value. The interesting thing is that the creators of the coin sold their tokens before the crash, as shown by their wallet addresses, making a lot of money in the process and leaving investors with nothing, with a worthless coin.

Both the celebrities and the creators of EthereumMax are listed in the lawsuit filed in New York. The plaintiffs are listed as anyone who invested in the coin between May 14, 2021 and June 27, 2021, and was “harmed by all of this.”

Scams of this type are normal, especially those where influencers and celebrities promote the coin, this is nothing new, and this is not the first time that Mayweather has been embroiled in a controversy over the promotion of cryptocurrencies.

All the cryptos that are launched and promoted by saying that you are going to earn double or triple in no time, is clearly a scam.

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