Kardashian and Mayweather involved in fraud. Defendants by the injured – Biznes Wprost

The “pump and dump” scam in the world of cryptocurrencies is based on aggressive marketing promotion of a specific cryptocurrency by its creators or holders, and then selling it at a profit when the price increases accordingly.

Pump and Dump EthereumMax

This was the case with the new EthereumMax cryptocurrency, which apart from the name has nothing to do with another recognized Ethereum cryptocurrency.

The lawsuit lists the creators of the EthereumMax cryptocurrency, who were accused of false or misleading marketing promises directed at investors via social media.

According to the accusers, false claims about the possibility of high returns led them to buy cryptocurrencies at artificially high prices. Prosecutors wrote that, in simple terms, the entire business plan of EthereumMax is based on aggressive marketing using famous people to lure potential investors.

Aggressive marketing with the use of celebrities

EthereumMax was promoted, among others by NBA player Paul Pierce on Twitter, where he boasted that the cryptocurrency “makes money for him.” EthereumMax was also promoted during Floyd Mayewather’s boxing match with youtuber Logan Paul.

Kim Kardashian, on the other hand, promoted the cryptocurrency on Instagram, where it is watched by 250 million people.

The creators of EthereumMax explained that their marketing and PR activities are not meant to encourage people to buy their cryptocurrencies, but only to arouse interest and persuade recipients to investigate the topic on their own.

Marketing activities with the use of celebrities have turned out to be so effective that the cryptocurrency will gain 1,300%. values ​​within a month of Kim Kardashian’s first Instagram post and then dropped to an all-time low. The prosecution alleges that during this time the developers sold a significant amount of EthereumMax tokens at a profit while buyers lost most of their money invested.

Also read:
The cryptocurrency market remains weak. There are the first reasons for concern

About Alex Marcell

He likes dogs, pizza and popcorn. Already a fanboy of Nintendo and Sony, but today throws anything. He has collaborated on sites and magazines such as GameBlast, Nintendo World, Hero and Portal Pop, but today is dedicated exclusively to Spark Chronicles.

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