Celebrities accused of ‘betraying trust of their fans’ with paid crypto-currency posts

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Stars in the dock over cryptocurrency adverts: Celebrities including Kim Kardashian are accused of ‘betraying trust of their fans’ with paid posts on social media

  •  Watchdogs say that celebrities are betraying fans by touting high-risk online investments
  • Kim Kardashian singled out for promoting a crypto-currency to her followers
  • Boxer Floyd Mayweather has also promoted Ethereum Max and accepted it as payment for a fight










Celebrities are betraying their fans by touting high-risk online investments, watchdogs said yesterday.

Kim Kardashian was singled out for promoting a crypto-currency to her 251million social media followers.

The reality TV star posted an advert for Ethereum Max – a digital ‘token’ similar to Bitcoin – on Instagram on Sunday. She said: ‘Are you guys into crypto??? This is not financial advice but sharing what my friends told me about the Ethereum Max token!’ 

Miss Kardashian, 40, did not say how much she was paid for the advert but a 2019 court filing revealed she can earn up to £361,000 for a single Instagram post.

Celebrities are betraying their fans by touting high-risk online investments, watchdogs said yesterday. Kim Kardashian was singled out for promoting a crypto-currency to her 251million social media followers

Celebrities are betraying their fans by touting high-risk online investments, watchdogs said yesterday. Kim Kardashian was singled out for promoting a crypto-currency to her 251million social media followers

The reality TV star posted an advert for Ethereum Max – a digital ‘token’ similar to Bitcoin – on Instagram on Sunday. She said: ‘Are you guys into crypto??? This is not financial advice but sharing what my friends told me about the Ethereum Max token!’

The reality TV star posted an advert for Ethereum Max – a digital ‘token’ similar to Bitcoin – on Instagram on Sunday. She said: ‘Are you guys into crypto??? This is not financial advice but sharing what my friends told me about the Ethereum Max token!’

Boxer Floyd Mayweather has also promoted Ethereum Max and accepted the online tokens as payment for a recent fight with YouTube star Logan Paul.

Regulators fear that crypto tokens are too risky for most savers – and some are scams. The stars are selling ‘delusions of quick riches’, according to Charles Randell, chairman of the Financial Conduct Authority.

Speaking of Ethereum Max at the Cambridge International Symposium on Economic Crime, Mr Randell said: ‘I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation.

‘Some influencers promote coins that turn out simply not to exist at all. There are no assets or real-world cash flows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin…’. 

He added: ‘We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.’

He said that swathes of people had ‘lost savings by being lured into the crypto-bubble with delusions of quick riches, sometimes after listening to their favourite influencers, ready to betray their fans’ trust for a fee’. 

Boxer Floyd Mayweather has also promoted Ethereum Max and accepted the online tokens as payment for a recent fight with YouTube star Logan Paul

Logan Paul

Boxer Floyd Mayweather (left) has also promoted Ethereum Max and accepted the online tokens as payment for a recent fight with YouTube star Logan Paul (right)

Mr Randell added that Miss Kardashian’s post may have been the financial promotion with the single biggest audience reach in history.

Watchdogs have sounded the alarm about cryptocurrencies such as Bitcoin because they exist solely online and their value is not related to any underlying asset. 

Newer tokens such as Ethereum Max are deemed even riskier since they do not have a ‘white paper’ guide which informs users about how they operate. Few details are known about their developers.

Cryptocurrencies also fall outside most regulations, leaving buyers vulnerable. Mr Randell said: ‘To be clear… If you buy them, you should be prepared to lose all your money.’

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