Many celebrities and influencers have caught on to cryptocurrencies over the past year, including Kim Kardashian, Floyd Mayweather, Matt Damon and more. Crypto is a risky investment technique, especially without the necessary research and knowledge. Now celebrities are promoting crypto to their followers; itโs time to discuss some potential risks.ย
Ethereum Maxย
Back in June 2021,โฏKim KardashianโฏandโฏFloyd Mayweatherโฏgot into trouble after endorsing a cryptocurrency called Ethereum Max, a coin that is known to be potentially fraudulent. Enthusiasts booed Floyd Mayweather off stage for promoting EMAX at a Bitcoin conference in Miami. The UKโs Financial Conduct Authority targeted Kim Kardashian for her promotion of the coin on Instagram.ย
Why Is It Risky?ย
Celebrity endorsement is usually fine. However, promoting a financial asset without correct warning or knowledge could cause financial distress for followers. There are influencers out there getting paid to promoteโฏfraudulent tokensโฏto boost speculations and use their following to get investors on board.โฏKim Kardashians Instagram adโฏdidnโt explain the risks ofย investing in crypto, putting her followers at risk of investing cluelessly in a coin that is likely a scam.ย
The hype around these coins with celebrity endorsement generates a dread of missing out from some consumers who may have little understanding of their risks. There is plenty of stories when people have investedย allย their savings in assets like crypto and stocks only to lose it all and end up in financial ruin.ย
I recently had the opportunity to speak with The Telegraph regarding the current crypto-mania and as I said there, โpeople who follow them fundamentally trust them. They believe in them, they look up to them, they aspire to be like them.ย So,ย anything they say is going to be taken as gospel by a good percentage of their followers. โI endorse this product.โ โOK, great โ letโs go and play with it'โ. If celebrities and influencers continue to carelessly promote these assets it will result in lives being ruined and their names tarnished.ย
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