The Influence of Kim Kardashian on the Crypto Market Due to Her Involvement in ICO Advertising Campaigns

History has many examples of global celebrities participating in the advertising of cryptocurrencies. The ratio of BTC USD has set all sorts of records in recent years, leading many show business stars to invest in crypto, with some serving as ambassadors for certain digital assets, appearing in advertisements.

Naturally, crypto developers or exchange owners generously reward such individuals. However, the experience of participation is not always positive. Especially when it comes to violations of token advertising rules. One such example is the situation with Kim Kardashian.

Lawsuit for Advertising EthereumMax

Kim Kardashian became a subject of a high-profile case related to a new (as of 2021) token called EthereumMax (EMAX). The situation was as follows: in one of her Instagram posts, Kardashian subtly talked about a popular new cryptocurrency, while forgetting to mention that she received a generous reward of a quarter million dollars from the developers.

One of the investors in the token sued her, along with former NBA player Paul Pierce and Floyd Mayweather, who also mentioned the new token with impressive prospects. The plaintiff alleged that the aforementioned celebrities colluded with the token developers to artificially inflate the coin's value.

In just 11 days, the asset's value dropped by 80%. It is worth noting that at that time Kardashian had over 220 million followers on Instagram. Paul Pierce also had millions of followers, and Floyd Mayweather appeared at the weigh-in for his fight wearing a T-shirt advertising the token. Thus, many people were affected by such actions.

Financially, the model suffered the most due to the advertisement. Kim Kardashian was fined $1.26 million. The boxer received a fine of 'only' $610,000.

It is important to mention that the celebrities did not participate in the advertisement of the token simultaneously. Initially, it was Paul Pierce, after whose post urging people to buy the new token, its value plummeted sharply. Then came Mayweather, and lastly, Kim Kardashian. This is why the affected investor considers her the most culpable.

Why the Securities and Exchange Commission Responded So Harshly

The Securities and Exchange Commission saw a crime in the actions of the token developers and Kim Kardashian. There are several reasons for this:

• The project named EthereumMax has nothing to do with the second most popular cryptocurrency (targeting the less attentive investors);
• Kardashian's lack of information about her reward from the developers;
• Promises of rapid token growth from well-known personalities (deliberate misrepresentation to investors).

It was the last point (the promise of rapid growth in the shortest time) that triggered the anger of the SEC and the initiation of a thorough investigation. The attention from the SEC led to a temporary increase in interest in the token, which even rose by 40%. However, this was a fleeting phenomenon, and its current value is less than $0.000001.