For one instagram story Kim Kardashian has pay a fine of $1.26 million. Last year in June she posted a story in instagram promoting a cryptocurrency called Ethereum max and few days ago SEC (Security and Exchange Commission) levied a huge fine on her for which she did not disclosed the facts that she was paid 250,000 dollars for the promotion.
What law says-
According to the law if any big personalities and celebrities is promoting investment in securities they will have to disclose and publicise the fact that they were paid for it. But here Kim Kardashian has violated this rule, any if you are also one of them who bought the currency by chance after seeing Kim’s story you must have lost 95% of your money by now. The cryptocurrency’s value is based on hype and it’s not half as stable as older cryptocurrencies like Bitcoin or ether and in the 16 months since her post it’s value is gone down by 95.3%. So it’s literally what a dumb purchase people must have made. Just because a celebrity you follow and promoted it.
A lot of celebrities sponsored by crypto companies-
Kardashian is just one of many celebrities who have hawked cryptocurrencies over the past years. And Yes celebrities get paid for the promotion of cryptocurrency and like Kardashian there are one couple Ben McKenzie and Jacob Silverman analysed last year.
All of that seems a bit sketchy –
That’s all a slightly esoteric way of saying the federal government, especially the SEC, already had keen interest in crypto markets and was keeping close watch of its biggest pushers, like Kardashian. Not to mention, after Kardashian’s Insta post EMAX currently saw just a slight rise in value and then down. It turns out the reality star’s endorsement may have fueled mass skepticism of the currency as opposed to hyping up demand.