The U.K. regulator slammed Kim Kardashian for promoting a risky cryptocurrency token.
Chairman of the U.K.’s Financial Conduct Authority (FCA), Charles Randell pointed at Kim Kardashian for pushing a cryptocurrency token that might put investors at risk on Monday.
According to Randell, Kardashian’s Instagram crypto promotion may have been the financial promotion with the biggest audience reach in history thanks to her over 250 million followers.
Following this, the regulator said they would cooperate with online platforms to safeguard both consumers and their businesses. Also, they would call out those who aren’t taking responsibility for undermining the confidence of their customers.
In addition, he slammed Kim, saying,
“Which brings me on to Kim Kardashian. When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by ‘joining the Ethereum Max Community,’ it may have been the financial promotion with the single biggest audience reach in history.”
The regulator's comment is due to the celebrity's Instagram story about EthereumMax. Moreover, Randell explained,
“She didn’t have to disclose that Ethereum Max — not to be confused with Ethereum — was a speculative digital token created a month before by unknown developers – one of the hundreds of such tokens that fill the crypto-exchanges.”
However, Randell didn't say whether the particular token was a scam or not. But he said that scammers usually pay influencers to promote their new cryptos based on speculation or fictitious coins that don’t exist at all.