Kim Kardashian has recently promoted a cryptocurrency on Instagram called "Ethereum Max", which turns out to be an untested piece of digital asset.
Now, the popular American TV personality is facing criticisms from the United Kingdom's Financial Conduct Authority (FCA) because of what it considers as an inappropriate endorsement.
FCA chairman Charles Randell said that Kardashian has rallied her 250 million followers to support Ethereum Max, which was created barely a month ago by unknown developers.
The crypto's infancy and unnamed software programmers were already clear indications that it shouldn't be promoted, especially by a high-profile personality.
Randell has accused influencers, especially Kardashian, of encouraging the hype surrounding "get-rich-quick" tokens.
He added that Kardashian's promotion of Ethereum Max could be considered as an advertisement with the single biggest audience reach in history.
"I can't say whether this particular token [Ethereum Max] is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation," Randell said in quotes by BBC News.
He also said the FCA has received reports that some influencers have even promoted tokens that didn't even exist at all.
BBC has tried to reach out to Kardashian and the developers behind Ethereum Max, but both of them are yet to release their statements.
Randell said around 2.3 million Britons currently hold cryptocurrencies, and 14% of them use credit cards to purchase them which, he said, increases their chances of losing their funds.
He pointed out that the FCA has repeatedly warned the public about the risks of holding cryptocurrencies, because these digital assets aren't regulated by the financial agency. In other words, the regulatory body cannot provide legal protection to anyone who chooses to hold cryptocurrencies.
To further highlight FCA's warnings, Randell said that if Britons are indeed interested in holding cryptos, they should also be prepared to lose -- not just a fraction -- but all their money.
Crypto ads are cleverly designed to give an impression that buyers of the supposed digital fiat are well protected from the risks of the highly volatile cryptocurrencies which, of course, does not have any basis.
