In June 2021, Kardashian advertised the token on her Instagram story. She may have convinced you to purchase Ethereum Max tokens last year, but by this point, your investments would have lost 95% of their worth.
The token's value has decreased by 95.3% in the 16 months since she made her post, according to Insider. Therefore, if you had invested $100 after Kardashian had publicized the token, your money would be currently worth roughly $5.
This post has landed her in trouble with the Securities and Exchange Commission.
In order to resolve allegations that she neglected to disclose how much she had been paid to promote Ethereum Max, the SEC said on Monday that Kardashian will pay a fine of $1.26 million and had agreed not to promote any crypto securities for three years.
Since its May 2021 launch, ethereum max, often known as EMAX, has been surrounded by controversies. The token has no connection to the popular ethereum cryptocurrency; rather, EMAX is an alternative coin that uses ethereum's blockchain ledger to track sales and transactions.
The value of EMAX is built on hype; as more people invest and spread the word thanks to celebrities like Kim Kardashian, the price rises. The SEC reported that Kardashian received $250,000 for her post, presumably in US dollars, though the agency did not provide that information. As part of the agreement, Kardashian neither admitted nor denied the SEC's allegations.
The stability of more traditional cryptocurrencies like bitcoin is lacking in altcoins or alternative coins like EMAX. And unlike bitcoin, which peaked in November at roughly $69,000 per coin, EMAX has never experienced such dramatic highs. Unlike EMAX which peaked only at $0.000000051 shortly after its introduction.
Tokens like EMAX are riskier investments since their value can fall significantly once investors stop buying or selling them. EMAX did just that.
Investors sued Kardashian and other celebrities who had pushed the token, including boxer Floyd Mayweather and former NBA player Paul Pierce, after the token's value fell by 98% by January. Both Kardashian and Mayweather have submitted petitions to dismiss the case, with their attorneys stating that there is insufficient proof that the plaintiffs' purchases of EMAX were influenced by their sponsorships.
While it's unclear how many people made investments based on celebrity endorsements, Morning Consult data showed that Kardashian's commercial reached around one in five US adults and roughly 30% of crypto owners.
