A surprisingly large proportion of cryptocurrency owners admit that they would buy a token that would be backed by a celebrity or influencer. Almost half of investors also follow what Kim Kardashian writes about digital assets.
Kim Kardashian a new leader in the cryptocurrency market?
According to a Morning Consultant survey of 2,200 American adults, as many as 45% of cryptocurrency-owning respondents said they would likely buy a digital asset if endorsed by a celebrity.
Three-quarters of investors indicated that they are likely to invest in cryptocurrencies and will do so based on the recommendation of a family member or friend. 81% would have invested if advised by a financial advisor.
Interestingly, almost 20% of all respondents and almost a third of cryptocurrency owners said they knew about the post posted on Kim Kardashian’s Instagram account. The celebrity promoted the ERC-20 Ethereum Max (EMAX) token with it. This took place in early June. It is amazing that 19% of respondents who saw this ad on Instagram admitted that they later invested in Ethereum Max.
EMAX was initially just $ 0.00000000073 (nine zeros!). Then it was announced that the token would be able to buy a ticket for the popular boxing fight. This caused the price to rise above 0.00000085 (six zeros). This resulted in an increase of over 116,000% in just one week.
After Ethereum Max finally lost over 99% of its value, Kim Kardashian posted an ad of it on her Instagram account. In the post, she wrote that 50% of the EMAX tokens held by the project administrator were burned.
While, according to CoinMarketCap, the token’s value before the post was published on the celebrity’s social media was only 0.0000000076 (seven zeros), after its publication, the price jumped to 0.000000235 (six zeros). That’s a 3,000% increase in less than two days.
EMAX has been down since mid-June, but the Kardashian post showed how easy it is to manipulate its price.
The incident did not go unnoticed by financial regulators, and the head of the UK’s Financial Conduct Authority Charles Randell described the Kardashian Instagram post as possibly a single “financial advertising with the largest reach in history “.
– Can’t say if this particular token [Ethereum Max] is a scam. However, social media influencers are routinely paid by scammers to help them pump up new tokens based on pure speculation. Some influencers promote coins that simply don’t exist at all – He said.