Celebrity Kim Kardashian along with Boxing Star Floyd Mayweather Jr, and NBA player Paul Pierce are facing a lawsuit for endorsing a crypto token. The lawsuit is filed in the Los Angeles federal court.
Read CRYPTONEWSLAND onIn detail, all three promoted the crypto token called EthereumMax (EMAX). To highlight, in June 2021, Kim Kardashian made a crypto-related post on Instagram. While the post did come with a disclaimer saying ‘this is not financial advice’, it seems as though the celebrity is endorsing EMAX tokens.
Similarly, Mayweather Jr. appeared in a fight with Logan Paul, a famous YouTuber. Here, the boxing champion wore boxing trunks covered in the EMAX token logo. Surely, it is no secret that many celebrities are slowly trickling into the crypto space.
However, there is a difference between showing interest in crypto and sharing experiences over outright endorsing a token. Above all, celebrities must remain cautious, lest their activities be seen as poor financial advice that could mislead gullible crypto enthusiasts or desiccated fans into possibly being scammed.
For instance, Elon Musk often shares his fondness over certain crypto on his Twitter page. Still, he never outright endorses any cryptocurrencies. In fact, memes are his favorite way of communicating with the crypto community.
Coming back to the lawsuit, Plaintiff Ryan Huegrich says it was wrong of the celebrity promoters to try and pump the price of EMAX. Also, he highlights how EMAX is notorious for using celebrity endorsements to draw in investors. At the time of writing the price of EMAX is $0.000000016421, according to CoinGecko.
Lastly, the topic of cryptocurrencies is still a sensitive subject in the United States. Hence, both investors and endorsers should be careful about where they wish to dedicate their time and assets.
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