If you are in the United States of America, then you must abide by the laws. The US is strict when it comes to enforcing the laws. If you spread misinformation that causes people to lose money, you can get sued. This is exactly what Kim Kardashian, Paul Pierce, and Floyd Mayweather did. What’s even funny is that all three were involved in a pump-and-dump crypto scheme. But which cryptocurrency did they try to pump? Well, it’s non-other than the EthereumMax pump. In this article, we’re going to talk about what EthereumMax stands for, and how did those celebrities get involved.
What is EthereumMax Crypto?
It is clear that the EthereumMax project started by taking the name of an already existing and successful blockchain: Ethereum. This alone should’ve been a red flag for crypto investors. On another note, when going to their official website, the most apparent thing is how to “buy” their token. They even go the extra mile to list the steps users need to take in order to buy the token.
Aside from all this sketchiness, EthereumMax claims to be a “community-driven” crypto project that “provides lifestyle perks with financial rewards and incentives to its holders with a pathway for practical long-term use in everyday life.” If you didn’t quite understand what that means, don’t worry because neither did we. When a project does not clearly outline the goals and vision, run away.
EthereumMax Pump – What Exactly Happened?
A class-action lawsuit is accusing EthereumMax and its celebrity promoters of working together to artificially inflate the price of the EMAX token. They basically made “false and misleading statements” on social media, as mentioned in the lawsuit.
Kim Kardashian has over 281 million followers on Instagram alone. Sending a hyped message to this many people about a crypto project from someone who does not understand tech properly sounds sketchy indeed. In the below screenshot, we can see a story posted by Kim that instigated that EMAX was going to “BOOM”. Analysts say that Kim was paid between USD 500,000 and USD 1,000,000 on each sponsored post to boost EMAX.
Floyd backed the EMAX token during his boxing match against the Youtuber Logan Paul. Tickets to the event could be purchased with the EMAX token. Since many people were expected to attend the fight, the lawsuit claims that this move boosted the trading volumes significantly.
The real crypto community knows how to differentiate between real crypto projects and bad ones. When Floyd attended a Crypto conference during that same period of time, he tried to promote EMAX. Luckily, he was booed off the stage.
Paul is a former NBA basketball player who was also caught in the heat of boosting EMAX’s social presence. Right after he was fired from ESPN for sharing controversial Instagram videos, he went to Twitter to make things worse.
EMAX Collapsed and People Lost Millions
All the three above celebrities happened to boost the EthereumMax project during the same period, which was towards the end of May and the beginning of June 2021. The price of the EMAX token skyrocketed x16 times within 3 days. On the other hand, the dump was very quick and harsh. Many people lost a lot of money, the fact that made the authorities raise red flags about this event, and in turn, file lawsuits against those celebrities who participated in this pump-and-dump scheme.
EMAX lost more than 98% of its value, leaving investors to dust. That’s why it is always advisable to understand the real use-case or service of the crypto project you’re investing in. Simply saying “we are awesome and you’ll get rewards” is not enough, nor “you’ll make big bucks soon”. Today, there are many real crypto projects that are serving the crypto community and helping in bringing decentralization forward.